Annual Report 2006

MAIN ROADS WESTERN AUSTRALIA

ANNUAL REPORT 2006

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Main Roads Western Australia Annual Report 2006

Table of Contents

Statement of Compliance...... 2 Commissioner’s Foreword...... 3 About Main Roads...... 5 01 About This Report...... 7 The Year In Review...... 11

02 The Future...... 19 03 Achievements...... 24 Road Use Safety Improvements...... 25 Road Network Operations Management...... 31 Road Infrastructure for Community Access...... 41 Road Use Efficiency Improvements...... 46 Road Infrastructure for State Development...... 49 Road Network Maintenance...... 54

04 Sustainability...... 57 05 Building Better Relationships...... 63 06 Strengthening OSH...... 69 07 Building and Expanding Our Capability...... 73 08 Key Performance Indicators, Financial Statements and Notes...... 81 09 Corporate Governance...... 147 10 Appendices...... 157 Road Industry Fact Summary...... 158 Statement of Expenditure Required Under section 175ZE of the Electoral Act 1907...... 159 Major Road and Bridge Projects – completed and in progress...... 160 Contracts over $1 million...... 164 Management Structure ...... 165 Publications...... 166 Regional Offices and Contacts...... 167 Maps...... 169

Glossary of Terms...... 173 « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006

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 2006.

This Report has been prepared in accordance with the provisions of the Financial Administration and Audit Act 1985.

Menno Henneveld COMMISSIONER OF Main Roads

19 September 2006 « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006

Commissioner’s Foreword The past 12 months has seen significant growth throughout Australia with unprecedented growth in Western Australia that has created new challenges for industry and organisations such as Main Roads which are responsible for delivering and managing infrastructure which underpins this economic growth. In particular we have had to face the challenge of effectively managing our limited resources and those of road and road transport users in an environment of increasing social, political and economic change.

We have achieved many of the challenging goals we set ourselves and we have successfully implemented a number of the far reaching initiatives identified in the Main Roads Strategic Plan, 2003-2007. As a result 2005-06 saw us reap the benefits of the clear strategic direction we had set and we are seeing the benefits of values based leadership, decision-making and integrated business planning throughout the organisation.

Our adoption of the principles of relationship contracting was rewarded with the outstanding results of the Roe 7 Alliance. This showcase project achieved many of our strategic objectives and highlighted just what can be accomplished when agencies such as Main Roads work collaboratively with industry and the community. The Roe 7 Project not only reached the aspirations of many of our customers, it has set new standards for project success.

The alliance contract methodology has enabled Main Roads and industry to respond to the skills shortage, share experience, knowledge and risk, and achieve outstanding outcomes far beyond traditional contracts. During the year we have converted our Term Network Contracts in the South West and Great Southern regions to a relationship based approach and will realise further benefits in the future from the Karratha Tom Price (Stage 2), New Perth-Bunbury Highway and Tammin – Walgoolan Alliance projects.

In December 2005 Main Roads was awarded the Customer Service Councils Service Excellence Award in the Large Business Category. Following this success, the Customer Contact Centre – the centrepiece of our new direction in customer service – celebrated its first birthday and was also awarded the Greenfield Site category in the West Australian Chapter of the National Australian Teleservices Awards. The centre has been an outstanding successful for Main Roads and helped us to better understand our customers and respond to their needs. This initiative will be complemented this year with the establishment of a Customer Advisory Council and the implementation of the Community Engagement Policy to ensure greater community involvement in our planning, delivery, operational and maintenance activities.

For Main Roads, 2005-06 was also the year we released our network operations strategy, ‘Smarter Roads, Better Journeys’ to gain greater efficiency from the existing road network. While still in its early stages, this strategy creates a new focus on identifying non-capital solutions that can effectively deal with issues such as road safety, heavy vehicle access

and incident management. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006

In commenting on our financial performance for However, we cannot become complacent if we wish 2005-06 I am delighted to report that Main Roads has to continue to be an Employer of Choice and we will come within 2% of spending its entire budget – that’s need to continue to provide attractive and flexible work $931 million of investment in road programs that will arrangements, a strong learning and development provide our community’s safety and amenity and will program and opportunities for individual growth. see a massive injection into the continued prosperity The progress over the last 12 months would not have of the State of Western Australia. A result we can all been possible without the dedication, loyalty and be proud of. commitment of all our staff. I would like to acknowledge Recognising the need to keep abreast of our State’s and thank each staff member for their contribution to changing social, economic and environmental these extraordinary results. I am continually impressed requirements, Main Roads has established a Steering by the professionalism and willingness to take up the Committee and Working Group to consider how we challenges faced by our organisation. Most of these can best integrate the principles of sustainability into achievements have come about through the wide our business and embed these values into our ranging new initiatives we have undertaken and I corporate culture. acknowledge that these have been accomplished while still very successfully conducting our core business. While there is no doubt in my mind that we are heading in the right direction, the imminent “run-out” of the 2003-2007 Strategic Plan, will see us again need to look forward to manage our future and achieve the outstanding results we strive for. This will see us move Menno Henneveld towards more scenario based planning; a review of COMMISSIONER OF MAIN ROADS the Main Roads’ Act and a continued push in our key areas of strategic focus. This approach will help us confirm our vision and build on the fundamental values on which we have based the remarkable progress our organisation has made in the past four years.

Our efforts to nurture, develop and enrich our people have also been rewarded with Main Roads almost reaching our 2007 target to increase our capability index by 15% more than twelve months ahead of schedule. This extraordinary result has been achieved in a time when it is difficult to recruit and retain experienced staff and will help ensure we can meet the requirements of

our workforce planning over the next three to five years. « PREVIOUS CONTENTS NEXT « MainMain RoadsRoads WesteWesterrnn AAustustrraliaalia AAnnualnnual RepoReporrtt 2006 2006

About Main Roads Main Roads Western Australia is a major statutory authority responsible for the State’s highways and main roads which have a replacement value of $21.4 billion. It is one of the agencies in the Planning and Infrastructure Portfolio created by the State Government to integrate land-use and transport planning. Main Roads is one of the largest geographically spread road agencies in the world, covering 2.5 million square kilometres, with a matching diversity in climate and road-user needs.

Role Main Roads is responsible for the total asset management of the classified road network, project delivery associated with expansion and maintenance of the network and traffic and road user management.

Vision To be recognised for excellence in customer service and world-class road access.

Purpose To provide safe and efficient road access that will enhance community lifestyles and ensure economic prosperity.

Values Roads Matter – Taking pride in managing the road network for the benefit of the community

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.

Main Roads is committed to achieving the State Government’s vision for a better quality of life for all Western Australians and plays a key role in ensuring the road network links communities, facilities, industrial, commercial and business development and enables efficient access to other modes of transport and contributes to the economic advancement of the State and the Nation.

To undertake this role, Main Roads has adopted Program Management as the manner in which it will deliver its road programs. Program Management provides a direct link between Main Roads’ key activities and Government objectives. Main Roads delivers

its services through ten regional centres located throughout the State.

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Organisation Chart Main Roads delivers its services through the dedicated efforts and support of some 940 employees. The delivery and management of the road network is achieved through eight executive areas. The following chart shows the structure and role of each of these areas, further information is included throughout the report.

Construction and Delivers all aspects of road network Maintenance management to and for the community Services throughout Western Australia from John Marmion 10 regional offices with central support.

Road Network Manages the operation of a safe, efficient Services and sustainable network that meets Des Snook customer and stakeholder needs.

Major Projects Delivers high-value road projects, providing Phil Ladner the community with quality, value-for-money road infrastructure.

Technology and Contributes to sustainable integrated Commissioner Environment transport by providing technical, engineering, of Main Roads Gary Norwell environmental and asset management Menno Henneveld expertise.

Finance and Develops and manages the financial, Commercial commercial and corporate services functions Services that support the organisation’s business and Peter Woronzow corporate governance objectives.

Organisational Facilitates the fulfilment of personal and Development corporate goals through the development John Taya of people, relationships and an innovative work environment.

Operational Contributes to the transfer of critical Planning and organisational knowledge to senior managers Development in line with the objectives of the Building Mike Wallwork and Expanding Capabilities Strategy.

Program Contributes to the development, and Budget management and preparation of Management the budget and programming task,

Bob Phillips annual budget and forward works program. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006

About This Report

01 « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006

About This Report The Western Australian Government developed a Strategic Plan Better Planning; Better Services which set common goals for all its agencies to improve the quality of life for all Western Australians.

Main Roads’ Annual Report for 2005-06 communicates to Parliament, the community it represents, stakeholders and employees the achievements and activities that have progressed towards achieving these Government Goals. This report also outlines the agencies achievements and business performance compared to its Strategic Plan 2003-2007 and its Corporate Business Plan for 2005-06.

The structure of this report is based on Main Roads’ contributions to Government Outcomes and reports on operations according to Main Roads’ program management areas. These program management areas describe the way in which Main Roads delivers its road programs. The outcomes from Enhancing the quality of life and wellbeing these programs are directly aligned to Main Roads of all people throughout Western Australia and Government Strategic Outcomes.

How Main Roads responded to the Government’s Goals

Goal 1: People and Communities To enhance the quality of life and wellbeing of all people throughout Western Australia

Main Roads provide Western Australian communities with an accessible, safe and efficient road network through network operations management, expansion of the network, road improvements and maintenance. A specific focus for Main Roads has been on customer service this year. This includes recognising the need to involve the community in decision making processes to enhance the safety, security and wellbeing of the community.

For information on how Main Roads achieved this including responding to Disability Access and Inclusion Plan outcomes and Universal Access, refer to the following:

Programs in the Achievements section: • Road Network Operations Management • Road Use Efficiency Improvements • Road Infrastructure for Community Access • Road Network Maintenance

Other sections: • Building Better Relationships • Sustainability

• Building and Expanding Our Capability « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006

Goal 2: The Economy To develop a strong economy that delivers more jobs, more opportunities and greater wealth to Western Australians by creating the conditions required for investment and growth

Main Roads contributed to the development of a strong economy through the provision, maintenance and operation of road infrastructure. In particular, the Road Infrastructure for State Development program helped support regional development and the economic growth of the entire State.

For information on how Main Roads achieved this, refer to the following:

Programs in the Achievements section: • Road Infrastructure for State Development

Other sections: • Financial Statements

Goal 3: The Environment To ensure that Western Australia has an environment in which resources are managed, developed and used sustainably, biological diversity is preserved and habitats protected

During the year, Main Roads has maintained certification of its Environmental Management System and commenced work on developing policies and strategies aimed at achieving greater integration of sustainability practices in everything that it does.

For further information on how Main Roads achieved this, refer to the following sections: • Sustainability • Building Better Relationships

Goal 4: The Regions To ensure that regional Western Australia is strong and vibrant

Main Roads manages its business through a head office located in Perth, one metropolitan regional office and nine rural regional offices located throughout the State.

There are 313 employees employed in regional offices. This represents 30% of Main Roads’ total employee numbers. A map of Main Roads’ regional offices can

be found in the appendices. « PREVIOUS CONTENTS NEXT « 10 Main Roads Western Australia Annual Report 2006

For further information on how Main Roads contributed to creating strong and regional vibrant communities and responded to the Regional Development Policy, refer to the following: Programs in the Achievements section: • Road Use Safety • Road Network Operations • Road Infrastructure for Community Access • Road Use Efficiency Improvements • Road Infrastructure for State Development • Road Network Maintenance

Other sections: • Sustainability • Building and Expanding Our Capability • Building Better Relationships

Goal 5: Governance To govern for all Western Australians in an open, effective and efficient manner that also ensures a sustainable future

Main Roads provided effective governance in everything it does in order to uphold a well managed, open and accountable organisation. Examples of the way Main Roads governs its organisation can be found throughout this report.

For further information on how Main Roads achieved this, refer to the following sections of this report: • Corporate Governance • Financial Statements • Sustainability

To govern for all Western Australians in an open, effective and efficient manner that also ensures a

sustainable future « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 11

The Year In Review The total value of the road network managed on behalf of all Western Australians increased by 11% from $19.3 billion to $21.4 billion. The following are some of the highlights that have been achieved by Main Roads and its people throughout 2005-06.

Program Achievements This year Main Roads delivered $931 million of services to the people of Western Australia. These services were delivered through six programs providing a direct link between Main Roads key activities and Government objectives. The following table shows the alignment between Main Roads programs and the Government’s objectives.

Main Roads Programs Government Objectives Outcomes Program A safe road environment Road Use Safety Safe road access Improvements Safe and efficient Road Network Operations Efficient road access movement of people and Management goods Improved personal mobility Road Infrastructure for Efficient road access and community access Community Access Efficient movement of Road Use Efficiency Efficient road access people and goods Improvements Support economic and Road Infrastructure for Economic and Regional regional development State Development development Minimise whole of life road Road Network A well maintained road asset management costs Maintenance network

The following graph shows how the funds were spent across each of the six Main Roads programs.

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The following are some of the significant achievements drawn from each program « PREVIOUS CONTENTS NEXT « 12 Main Roads Western Australia Annual Report 2006

Road Use Safety Improvements • A total of $20 million was directed towards projects Over $74 million was expended on initiatives aimed at with high safety benefits under the State Black Spot reducing the road fatality rate, minimising road factors Program. Some 39 projects were undertaken on contributing to road trauma and reducing the serious State roads with a further 175 projects carried out crash injury rate. on local roads. • Road Fatality Rates per 100 million vehicle • $26 million was allocated towards Safer Road projects kilometres travelled have continued to show a across the State. The Safer Roads Program focused downward trend to December 2005. on identifying and funding targeted crash types across the network and on high priority community projects. ,>`Ê>Ì>ÌÞÊ,>ÌiÃ «iÀÊ£ääÊ Ê6i ViÊiÌÀiÃÊ/À>Ûii`Ê6/® The funding allowed work to commence on 21 Safer Roads projects throughout the State in 2005-06. £°ä • The Commonwealth Government continued its National Black Spot Program directing $4.7 million ä°n towards projects. This enabled a total of 11 projects to be undertaken on State roads with a further 43 ä°È projects on local roads. • The Local Impact Committee, as part of the ä°{ State Government’s Freight Network Strategy to ,>`Ê>Ì>ÌÞÊ,>Ìi improve the traffic management of the south west

ä°Ó metropolitan corridor has seen projects such as South Street Bus Priority Lanes from Kwinana Freeway to Roe Highway – Stage 1, completed in ä°ä Óää£ ÓääÓ ÓääÎ Óää{ Óääx 2005-06 at a cost of $40 million. >i`>ÀÊ9i>À /Ì>Ê7 /Ì>ÊÕÃÌÀ>> Road Network Operations • Serious Road Injury rates have remained relatively Almost $82 million was expended on optimising real constant in Western Australia between 2002 and 2005. time management of the network, providing traveller

-iÀÕÃÊ,>`ÊÕÀÞÊ,>Ìi information and supporting the delivery of projects. «iÀÊ£ääÊ Ê6i ViÊiÌÀiÃÊ/À>Ûii`Ê6/® • The first stage of a trial of Uninterruptible Power £x Systems to provide backup for traffic signals in the event of loss of power has been successful. Further £Ó trials of the six sites are being continued to ensure reliability and durability with a view to have back up power at all times to 50 of the most important intersections in Western Australia.

È • The Traffic Operations Centre continues to manage the metropolitan road network and is the central -iÀÕÃÊ,>`ÊÕÀÞÊ,>Ìi point for real time traffic information 24 hours a Î day, seven days a week. New relationships are being developed with media outlets to keep the ä Óää£ ÓääÓ ÓääÎ Óää{ Óääx community updated with the latest news on traffic >i`>ÀÊ9i>À congestion, hazards and incidents. During May 2006, live television crosses to a popular morning television show commenced providing morning

commuters with the latest traffic reports. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 13

• As part of the progression towards an Intelligent Road Infrastructure for Community Access Transport System, Closed Circuit Television Cameras Over $106 million was expended on providing were installed in areas around Mandurah and infrastructure that will improve personal mobility Fremantle, real time vehicle detection equipment and community access through improving current for freeways was purchased and two portable standards of access. variable message signs were acquired. This • Main Roads is a key stakeholder in the New infrastructure will enhance Main Roads’ Incident Metro Rail (NMR) project and has been involved Management capability. in providing key staff for the project team, project • To address heavy vehicle industry concerns with and contract managing various aspects of the total delays in processing permit applications a network project, reviewing and approving changes impacting approach is being adopted. 2005-06 has seen a on the State road network and coordinating approval 10% reduction in the number of permits issued of traffic management. whilst still ensuring that access to the network is • Main Roads is working closely with the Public maintained. Transport Authority (PTA) to ensure the best • To improve compliance of heavy vehicles outcome for Western Australia. The projects Main Roads has been focusing on increasing the associated with the NMR project will result in transport inspectorate, the following are a few points approximately $200 million of new road and of interest: bridge assets for which Main Roads will assume • Over 10 000 heavy vehicles were inspected in responsibility. 2005-06, an increase of 25% • Package E was one of the major project initiatives • Industry is now being advised each quarter of that Main Roads project managed on behalf of the compliance performance PTA. This involved changes to the Narrows Bridge, • The following graph shows the different types Mount Henry Bridge, relocation of ramps at Canning of offences and their frequency over a three Highway to name just a few aspects. The total value year period of Package E was over $120 million with works being largely completed in May 2006. *iÀViÌ>}iÊvÊ"vviViÃÊÛÃÊ6i ViÃÊÃ«iVÌi`Ê ÓääÎä{ÊÌÊÓääxäÈ • Work has commenced on the Karratha – Tom Price Stage 2 project which is being delivered through an xä Alliance Contract involving Macmahon, GHD, Coffey Geosciences and Main Roads. This $125 million

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"ÛiÀ>`Ã *iÀÌ VVÀi`Ì>Ì iÃ> >`Ê,iÃÌÀ>Ì 6i ViÊ iviVÌÊ ÌViÃ Relocation of ramps at Canning Highway

/Þ«iÊvÊ"vviVi « PREVIOUS CONTENTS NEXT « 14 Main Roads Western Australia Annual Report 2006

project will significantly improve safety and provide much improved access between inland and coastal communities as well as providing better access to tourist centres in the region.

Road Use Efficiency Improvements Over $70 million was expended on improving the efficiency, capacity and utilisation of the existing road network. • In January 2006, work commenced on the ALine East Alliance, a $42 million federally funded project to upgrade 65 kilometres of Great Eastern Highway between Hines Hill and Walgoolan. The Alliance Sawyers Valley to The Lakes brings together expertise from Main Roads, Brierty project on Great Eastern Highway Contractors, BG&E and WML Consultants. This work will result in greater safety, reduced travel times and greater travel amenity. • Work was completed on Stage 1 of the $90 million Geraldton Southern Transport Corridor. This was • Work has commenced on a grade separated a road and rail project managed by Main Roads interchange to the Leach Highway – Orrong Road and provides improved freight access to the Port of intersection valued at $21 million. This work which Geraldton whilst enabling the City of Geraldton to commenced in May will result in improved traffic undertake future regional development, growth and flows, reducing traffic delays in peak periods. revitalisation. Road Infrastructure for State Development • The completion of the $75 million Roe Highway A total of $144 million was expended on expanding from South Street to Kwinana Freeway completes the road network in accordance with State and Federal a vital link in Perth’s metropolitan road network Governments transport and land use planning strategies providing a seamless route from Midland to the facilitating the economic and regional development of Kwinana Freeway. This project delivers substantial the State. advantages for the community and environment • Work has been largely completed on the $50 million including improved road safety, traffic calming, Sawyers Valley to The Lakes project on Great Eastern extensive Principal Shared Paths, preserving rare Highway. This project improves road safety and urban bushland and reducing transport costs provides a more efficient transportation route to the and traffic congestion. Roe 7 was delivered by an Eastern States and the Goldfields-Esperance Region. Alliance bringing together Main Roads, Clough Ltd and Maunsell Australia Pty Ltd. • The last seven kilometres of the Mills Road West to Thomas Road section of Tonkin Highway was • Project development has commenced on the opened in December 2005, some 12 months Lancelin-Cervantes project to build 65 kilometres of ahead of schedule. This 18 kilometre extension the Indian Ocean Drive link from Perth to Dongara, will remove much of the regional traffic from local and on Stage 2 of the Geraldton Southern Transport roads and improve residential amenity and improve Corridor project which involves the construction of road safety by concentrating heavy vehicles on a 8.5km of new road to complete the corridor project. dedicated freight route. This project also facilitated • Project Development work has also commenced the development of Champion Lakes rowing course on the $500 million New Perth-Bunbury Highway and will open up more than 1 000 hectares of Project. This 70 kilometres of new roads will residential land. significantly improve transport connectivity and travel times between the metropolitan area and the rapidly

growing Peel and South West regions. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 15

Road Network Maintenance Over $270 million was expended on maintaining the existing road and bridge network to address the objective of maximising asset life. • The bulk of the expenditure in the maintenance program is attributed to the eight regionally based 10 year Term Network Contracts. These contracts provide road maintenance and rehabilitation services on State roads and regulatory signs and road lines on local roads. A total of $19 million of minor improvement works was also delivered by the Term Network Contractors. • The Federal Government has committed $45 million for widening and reconstruction of 73 kilometres Roadside vegetation is an important biodiversity asset of the Eyre Highway. Preconstruction work has commenced on a $75 million project to design and construct almost 60 kilometres between Heartbreak • The Geraldton Southern Transport Corridor Stage Ridge and Balladonia East. 1 project won the National Case Earth Award for the Environmental Excellence category for projects Key Initiatives worth more than $10 million. This is outstanding In conjunction with the delivery of the works program recognition for everyone who worked on the project Main Roads continues to focus on initiatives aimed and was a joint submission from Main Roads, at improving the organisation’s commitment to the Public Transport Authority and Thiess Pty Ltd. community and its employees. Excellence in Customer Service Sustainability Main Roads commitment to Excellence in Customer Work has started on establishing a formal policy Service was recognised through these awards received framework for sustainability throughout Main Roads. during 2005-06. This will provide a corporate vision and principles in • Main Roads was awarded the Customer Service regard to sustainability and a clear basis for the setting Council’s Service Excellence Award for the Large of specific sustainability objectives. This new initiative will Business Category. This is a great boost towards build on the existing Sustainability Action Plan and take achieving the Vision of “excellence in customer it to a new level. The following are initiatives undertaken service and world class road access”. that support Main Roads commitment to sustainability. • The Pilbara Region received Fire and Emergency • Main Roads has maintained its AS/NZS Services Authority of Western Australia 2005 ISO14001:2004 Certification for its Environmental Australian Safer Communities Awards for works Management System. During 2005-06, the system associated with Pre-disaster Category. was updated to comply with the 2004 version of • The Gascoyne Region received Fire and Emergency the Standard and to incorporate new guidelines on Services Authority of Western Australia 2005 water protection and heritage. Australian Safer Communities High Commendations • Roadside vegetation is an important biodiversity asset. in the Post-disaster Category for their work following An assessment of roadside vegetation has been Cyclone Monty. completed for 8 000 kilometres of roads in pastoral • During 2005 the Customer Contact Centre was areas and 800 kilometres in urban areas of Perth. awarded the Greenfield Site category in the West Work will now commence on assessing changes to Australian Chapter of the National Australian the vegetation as part of Main Roads’ commitment Teleservices Awards.

to maintaining this important natural asset. « PREVIOUS CONTENTS NEXT « 16 Main Roads Western Australia Annual Report 2006

Each year Main Roads conducts an extensive • In 2006, Main Roads sponsored the inaugural independent Community Perceptions Survey to gauge Main Roads Life Cycle Great Western Australian the views of Western Australians of the State road Bike Ride from Albany to Perth. This two week event network and Main Roads’ performance in managing the attracted over 2 600 cyclists and 205 volunteers network. This year saw a slight drop in the community’s from around Australia and overseas. Main Roads perception of Main Roads’ overall performance. Similar worked closely with Bicycle Victoria and Western results to previous years were achieved for improving Australia’s Bicycle Transport Alliance. The event was access to the road network and providing effective a great success with Main Roads representatives communication. There was a slight improvement in visiting schools and community groups along the perception of provision of roads. way spreading the benefits of cycling and listening to community concerns. ÕÌÞÊ*iÀVi«ÌÃÊ-ÕÀÛiÞ Strengthening OSH £ää • In 2005-06, Main Roads has recorded an Occupational Safety and Health performance level nä of 6.5 Lost Time Injuries per million hours worked Frequency Rate while Main Roads contractors

Èä have reported a welcome reduction in the overall Frequency Rate from 3.3 to 2.7 lost time injuries per million hours worked.

¯Ê->ÌÃvi` {ä • The Major Projects Directorate has achieved a Worksafe Plan Silver Certificate which acknowledges Óä that substantial progress has been made in the management commitment and operational practices. Major Projects are heading for a Gold ä "ÛiÀ> *ÀÛÃÊ «ÀÛ}Ê vviVÌÛiÊ Certificate in 2006-07. «iÀvÀ>Vi vÊÀ>`Ã >VViÃÃ VÕV>Ì >Ìi}ÀÞ • The Roe 7 Alliance received a Worksafe Gold Óää{äx ÓääxäÈ Certificate, in 2006, for its outstanding safety record for this project. • The Customer Contact Centre has been in operation for a year, providing services such as a 24/7 point of contact, responding to Emergency Phones, Road Fault and Hazard Reports and up to date information on road conditions. • Some 204 complaints were registered during 2005-06, where the largest category of complaints was in relation to road maintenance issues followed by traffic and safety matters. A survey carried out in June 2006 indicated that 78% of people who had complained were satisfied with the way in which their complaint was handled. • During 2005-06, more than 20 000 people visited the Don Aitken Centre in East Perth and the Customer Contact Centre handled more than 400 000 phone calls.

The Customer Contact Centre is a

24/7 point of contact to Main Roads « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 17

• A Middle Management Development Program has been introduced during the year to bring together best practice theories on management and leadership. Participants in this course will receive a Diploma of Frontline Management. • A joint initiative with the University of Notre Dame has led to the creation of a Graduate Certificate in Construction and Building Law program. The pilot program has an intake of 22 employees. • Main Roads has established the REACH foundation of which the Governor of Western Australia is Patron. The REACH foundation is working with key stakeholders to seek support in regional areas to establish a community foundation to address skill shortages in the road construction industry and provide employment opportunities for young people in regional communities. To address the loss of skills and expertise, a target was set in January 2004 to increase our capability by 15% As part of Main Roads’ commitment to its employees by December 2007 and in creating an environment where employees are valued and creativity is fostered, it is pleasing to acknowledge the following awards for human resources that Main Roads received during 2005. Building and Expanding Our Capability To address the loss of skills and expertise within the 2005 Australian Human Resources Institute organisation a target was set in January 2004 to Awards increase capability by 15% by December 2007. State Winner – Excellence in People Management, To date, an increase in capability of 14% has been Medium Enterprise – Public/Not for Profit Sector achieved. This is attributed to sustained retention rates, increased learning and development activities and an National Finalist – Excellence in People Management, increase in workforce numbers. The following are other Medium Enterprise – Public/Not for Profit Sector initiatives that have contributed to building and National Finalist – Innovation Award for Managing an expanding Main Roads capability. Aging Workforce • There have been ten scholarships awarded to Year 12 students and first year university and TAFE 2005 Australian Human Resources Awards students who are planning to undertake career National Winner – Best Mature Age Workforce Strategy paths aligned with the road industry’s future needs. National Finalist – Best Work–Life Integration Strategy • A significant number of development programs National Finalist – Employer of Choice (public sector) have been implemented aimed at attracting youth to Main Roads. As at the end of June, 12% of the total These awards are significant in reinforcing that workforce are participating in development graduate, Main Roads values its employees and have a strong,

associate, scholarship and traineeship programs. highly engaged and committed workforce. « PREVIOUS CONTENTS NEXT « 18 Main Roads Western Australia Annual Report 2006

Financial Overview /Ì>Ê Ý«i`ÌÕÀiÊLÞÊ/Þ«iÊÓääxäÈÊ >«Ì>Ê>`Ê"«iÀ>Ì}® Êf • The value of Main Roads net assets is $22.5 billion, an increase of $2.7 billion over the previous year. >«Ì>Ê Ý«i`ÌÕÀi >Ê,i«>ÞiÌÊ The value of road infrastructure is now $21.4 billion, Î£x >`Ê>ViÊ ÃÌ {{ «ÞiiÊ iivÌÃÊ an increase of $2.2 billion over the previous year. >`Ê-Õ«iÀ>Õ>ÌÊ • Total funding received in 2005-06 amounted to vÀ>ÃÌÀÕVÌÕÀiÊ>ÃÃiÌÃÊ Ý«iÃi ÀiÌÀi`ÉÀi«>Vi` În $1.2 billion including an advance of $323 million Ç >«Ì>Ê1ÃiÀÊ >À}i -Õ««iÃÊ>`Ê from the Commonwealth for expenditure on AusLink xx -iÀÛViÃ ÓÈ£ projects over the period 2005-06 to 2009-10. À>ÌÃÊ>`ÊÃÕLÃ`iÃ Õ`}Ê-ÕÀViÃÊÓääxäÈ £££ i«ÀiV>ÌÊ Ý«iÃiÊ>`Ê Èä ÀÌÃ>ÃÌÊ Ý«iÃi £{{

xä -Õ««iÃÊ>`Ê-iÀÛViÃ i«ÀiV>ÌÊ Ý«iÃiÊ>`ÊÀÌÃ>ÃÌÊ Ý«iÃi À>ÌÃÊ>`ÊÃÕLÃ`iÃ {ä >«Ì>Ê1ÃiÀÊ >À}i vÀ>ÃÌÀÕVÌÕÀiÊ>ÃÃiÌÃÊÀiÌÀi`ÉÀi«>Vi` >«Ì>Ê Ý«i`ÌÕÀi Îä >Ê,i«>ÞiÌÊ>`Ê>ViÊ ÃÌ «ÞiiÊ iivÌÃÊ>`Ê-Õ«iÀ>Õ>ÌÊ Ý«iÃi ¯ÊvÊÕ`} Óä • The loan liability as at the end of 2005-06 was £ä $111.1 million, representing a 24.3% decrease from 2004-05. ä >Ê ÀÀÜ}ÃÊ>`Ê>ViÊ ÃÌÃ

-Ì>Ìi Óxä Óä 1«}À>`i *>V>}i VViiÀ>Ìi` "Ì iÀÊVi Üi>Ì Üi>Ì Óää /Þ«i

£x £xä • Main Roads expended almost $932 million (excludes $42 million of non-cash accounting treatments)

ÀÀÜ}ÃÊf £ää

– $110 million was provided to Local Government >ViÊ ÃÌÃÊf £ä as grants and subsidies. – Capital expenditure on road infrastructure was xä $305 million

– Almost $36 million of loans were repaid during ä x the year. This has lead to a reduction of the ä£äÓ äÓäÎ äÎä{ ä{äx äxäÈ >V>Ê9i>À Interest cost on borrowings by $2.4 million to $8 million. ÀÀÜ}Ã >ViÊ ÃÌÃ – For Information on expenditure by road program refer to the achievements section of the report. More information on each of these highlights can be found in the body of the Annual Report. You are encouraged to read further to find out more about the activities that

Main Roads has undertaken during 2005-06. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 19

The Future

02 « PREVIOUS CONTENTS NEXT « 20 Main Roads Western Australia Annual Report 2006

The Future Challenges and Trends The challenges that come with managing such a widely dispersed and valuable asset such as the State’s road network are many and varied. Community expectations are changing rapidly. Consumers have growing access to information about goods and services from around the world as the economy continues to globalise. For the economy to thrive land transport must be effectively provided for and ongoing investment in our roads is an integral part of the production and distribution chain and is more important than ever.

Road authorities around the world and all levels of government generally are facing a number of similar challenges in providing and maintaining roads in the context of changing social, environmental and economic factors. In Western Australia some of the challenges are due to the booming resources economy and the flow on impact that has on Main Roads in terms of delivering its services to the community. Some of the challenges and future trends Main Roads is facing include: • The strong economy throughout Australia, particularly in Western Australia, combined with a national skills shortage has reduced the competitiveness of tender prices for roadwork. Coupled with increasing oil prices this has caused unprecedented cost escalation in the civil construction industry and resulted in significant project cost increases. • Road user expectations continue to increase demanding better access to the road network along with safer and more efficient roads. • The impact of the growth in the road freight task, which is expected to double by 2020, is compounded by the increasing age of the road network. In addition, the heavy vehicle industry is seeking to gain greater economies through innovative larger vehicles amidst continuing community concern. • To keep pace with the rapid growth in State development and the consequential increase in road freight and traffic demands, there is a need to increase the real level of road funds to improve and expand the network. These needs are in addition to those resulting from the demands of an ageing network. As a result of these works being postponed due to funding constraints whole of life cycle costs for these assets will increase, together with road user costs and a possible deterioration in road safety. • There are heightened requirements for Main Roads to positively contribute towards long term environmental protection and to develop a sustainable road network. • Maintaining and building capability throughout the organisation is an area of strategic focus as Main Roads positions itself to develop and maintain a highly motivated, skilled and sustainable workforce and responds to key skill shortages. • In response to ensuring the most effective operation of the entire network a Road Network Operations Strategy called ‘Smarter Roads, Better Journeys’ has been developed. The focus is on providing a service to customers aimed at improving and

facilitating the use of the existing road network. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 21

Values and Innovation Strategic Planning 2003-2007 In addition to these activities, Main Roads is moving The Main Roads Strategic Plan, known as 2K7, sets the towards implementing values-based leadership and high level direction for Main Roads through to 2007; it decision making. It is a long term plan that requires is the response to the challenges and the environment different types of action at different levels and an in which Main Roads works. 2K7 focuses on what must innovative thinking style will be critical to success. be done better and what has to be done to improve and change. During 2006, Main Roads will develop an innovation plan that will build on a long standing tradition of innovative 2K7 is integrated with the State Strategic Planning practices at both a technical and leadership level. Framework Better Planning: Better Services which Main Roads has set a challenge to become a leader outlines the Government priorities and whole of in its field, an organisation that others will respect and government goals for policy within and across agencies follow and this means delivering innovative services to and portfolios. its customers and stakeholders. The key to success Main Roads’ integrated approach to planning is in achieving this will be to develop a culture that based on input from customers and from across the empowers and encourages employees to challenge organisation coordinated through 2K7, the Corporate the existing norms and to think creatively, to find new Business Plan, Directorate and Branch Business Plans solutions as Main Roads faces the future. and ultimately to every employee through Individual Development Plans.

2K7 leads Main Roads’ planning process and is the response to the trends and influences that drive its strategic direction in the six Key Areas of Focus. A suite of strategies have been developed to support each of the Areas of Focus as outlined below.

Strategic Directions Key Area of Focus Strategic Objective Supporting Strategy Sustaining Network Operations Maximise the safety and efficiency of Smarter Roads, Better Journeys – the road network Road Network Operations Strategy Project Delivery Deliver the road program on time Improving Project Delivery Strategy and on budget Asset Management Increase emphasis on minimising Asset Management Strategy Whole of Life cost approach to road management Community Involve the community in key Excellence Inroads – Customer decisions in a timely manner Service Strategy Building better relationships with Relationships key stakeholders, by working closer together Building and Expanding Capability Developing a highly motivated, Building and Expanding Capability

skilled and sustainable workforce Strategy « PREVIOUS CONTENTS NEXT « 22 Main Roads Western Australia Annual Report 2006

Business Planning 2005-06 The four primary activities Planning, Delivery, Maintenance The achievement of activities identified in the above and Network Operations relate to the fundamental Strategies along with core business activities are asset management tasks associated with Main Roads’ directed through the Main Roads Corporate Business activities. These activities are supported by five key Plan. In responding to challenges Main Roads has management processes Environmental Management, also integrated planning through process linkages and Customer Relationship Management, Human Resource specifically the Business Planning Model. Management, Financial and Commercial Management, and Knowledge and Information Management. The Business Planning Model represents how Main Roads goes about its business. It depicts the It is the integration of these drivers, activities and interrelationship between internal business management processes shown below during a twelve month period processes and shows how they interact with external which represents what Main Roads does in responding drivers to achieve desired outcomes. to the future challenges and the outcomes and benefits that it aims to deliver.

Drivers Business Planning Model Outcomes

Customer Safe road and environment Stakeholder Planning Needs Efficient movement of people and goods

Sustainability Delivery Improved community access

Support economic Governance and regional and Risk Maintenance development

Management Management Environmental Human Resource Management Human Resource Customer Relationship Management Financial and Commercial Management Financial and Commercial Knowledge and Information Management Minimise whole of life costs

Network Operations Innovation Well managed organisation

Asset Management Activities Supporting Functions « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 23

Achievements

03 « PREVIOUS CONTENTS NEXT « 24 Main Roads Western Australia Annual Report 2006

Achievements Main Roads is committed to achieving the State Government’s vision for a better quality of life for all Western Australians.

Main Roads is responsible for the total asset management of the classified road network, project delivery associated with expansion and maintenance of the network and traffic and road user management. Main Roads plays a key role in ensuring the road network links communities, facilities, industrial, commercial and business development and enables efficient access to other modes of transport, contributing to the economic advancement of the State and the Nation.

To undertake this role, Main Roads has adopted Program Management as the manner in which road programs are delivered. Program Management drives outcomes based decision making and in its simplest form is the coordinated management of a group of projects to achieve agreed business outcomes. Program Management provides a direct link between Main Roads’ key activities and Government objectives. It provides a strategic view of Investment Planning and Program Development. It also represents Main Roads’ delivery outcomes. The following table aligns the six Main Roads programs, the outcomes of the Business Planning Model, with Government Objectives and represents how our budget estimates are presented to Government.

Expenditure by Program for 2005-06 has been as follows:

ÓääxäÈÊ Ý«i`ÌÕÀiÊ*À}À>Ê >>}iiÌÊ6iÜ

f£{{

f£äÈ

fÇx « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 25

Road Use Safety Improvements

The objective of this program is to reduce the road fatality rate to be the best in Australia, minimise road factors contributing to road trauma and reducing the serious crash injury rate.

During 2005-06, almost $75 million was expended on Road Use Safety Improvements which made up 10% of the total road program. The following are some of the works undertaken during the year.

Safer Roads Program While there has been a downward trend in road trauma per 100 million vehicle kilometres travelled, there is a strong desire by the community to continue to reduce death and injuries. To enhance the proven approach of Black Spot Programs in reducing road crashes, there is a move within Australia towards a ‘Systems Approach’. This approach takes into account the interaction between the road, speed, driver and the vehicle to identify broader network improvements to counter road crashes. This has seen the introduction of the Western Australia Safer Roads Program with an overall funding level of $103 million over four years.

Reid Highway West Swan Road – Great Northern Highway (Metro Region) The State Government has committed $27 million for a 2.6 kilometre dual carriageway extension of Reid Highway from West Swan Road to Great Northern Highway including a bridge over the Swan River.

Reid Highway, between Mitchell Freeway and Midland, provides a direct link between the Osborne Park, Balcatta, Malaga and Midland industrial complexes. The link with Roe Highway also connects these areas to Perth Airport, Kewdale Freight Terminal and the industrial areas at Welshpool, Kewdale and Canning Vale.

The upgrade will remove significant volumes of heavy through-traffic from other metropolitan roads and accommodate larger vehicles to promote transport efficiencies, supporting economic growth and regional development. It will help make the road environment safer for all road users and consequently may encourage more motorists to use the highway as a result. Work in 2005-06 comprised preliminary design, investigations and further environmental studies. The project is to be delivered by 2008-09.

Brand Highway (Mid West Region) As part of the Safer Roads Program, upgrades between Eneabba and Geraldton were carried out with final projects completed in June 2006. $2.4 million was spent on constructing passing lanes, including one passing lane 15 kilometres north of Dongara and extending a passing lane six kilometres south of Dongara. $1.8 million of shoulder reconstruction, channelisation improvements, seal widening and audible edge line installation was also completed to address safety concerns on this section of road.

South Western Highway, Bridgetown (South West Region) The widening and reconstruction of the highway, construction of a climbing lane and extension of the existing descending lane was completed at Hesters Hill, five kilometres north of Bridgetown, in April 2006 at a cost of $3.3 million. This work will provide a much needed passing opportunity on this hill reducing driver frustration and improving safety. It forms part of an ongoing program to widen and upgrade South Western Highway

between Donnybrook and Bridgetown. « PREVIOUS CONTENTS NEXT « 26 Main Roads Western Australia Annual Report 2006

State Black Spot Program The State Black Spot Program (State Roads and Local Roads) is a State Government funded initiative with Local Government contributing an additional one third of funds for local road projects. In 2005-06, the State Black Spot Program provided $20 million for road- safety-related works on State and Local roads with Local Government contributing an additional $5 million. State Government funding is split between State and Local Government on a 50:50 basis. A total of 28 projects were completed on State Roads and 111 completed projects on local roads.

Some projects undertaken included: • Onslow Road. Shire of Ashburton ($300 000) Black Spot Programs directly target improvements to the safety of roads with a proven crash history or high-risk – improve horizontal curve. Completed June 2006. locations • Coolgardie-Esperance Highway and Emu Rocks Road. Shire of Coolgardie ($350 000) – improve intersection. Completed June 2006. Wanneroo Road/Joondalup Drive Intersection • Goldfields Highway and Boorora Road. City of (Metro Region) Kalgoorlie – Boulder ($425 000) – widen intersection, A contract to modify all the approaches to the reconstruct pavement and relocate power poles. intersection of Wanneroo Road and Joondalup Drive Completed May 2006. commenced in August 2005. Works were completed • Albany Highway and Page Road. City of Armadale in March 2006 at a cost of $2.6 million for the project. ($160 000) – install traffic control signals. Completed Dedicated lanes for left turn, straight through and April 2006. right turn were provided with modifications to Traffic • Albany Highway and Burslem Drive. City of Gosnells Control signals and pedestrian facilities improving ($220 000) – install traffic control signals. Completed safety and efficiency. June 2006. Bussell Highway, Vasse to Margaret River • Tonkin Highway and Welshpool Road. Shire of (South West Region) Kalamunda ($560 000) – modify left turn pockets. Completed December 2005. The widening of five kilometres of highway and the construction of two passing lanes immediately north of As part of developing the program, Main Roads also Metricup Road was completed in May 2006 at a cost of undertook the Project Development activities of the $4.1 million. This work will improve safety and provides Metropolitan State Road Black Spot Program to much needed passing opportunities, improving traffic facilitate delivery of the program. The State Black flow and reducing driver frustration. It forms part of an Spot Program 2006-07 has an approved allocation of ongoing program to widen and provide passing lanes $20 million. on Bussell Highway between Vasse and Margaret River. National Black Spot Programs Black Spot Programs The National Black Spot Program is a Federal Black Spot Programs directly target improvements Government funded program with total funding for to the safety of roads with a proven crash history or Western Australia of about $30 million over a 6-year high-risk locations. Funding for the programs is primarily period from 2002-03 to 2007-08. The Commonwealth focused on cost-effective treatment of hazardous road Government approved $4.7 million for projects, enabling locations. 7 State Roads and 27 Local Road projects across the

State to be completed in 2005-06. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 27

Other Significant Safety Projects South West Highway (South West Region) These safety projects are funded from a variety of Significant safety projects in this region include: programs within Main Roads. This includes, but is • An amount of $700 000 was allocated to an not limited to, the Network Safety and Improvement important section of South West Highway between Program (NSIP) which is a suite of projects that focus Bendall Road and Marginata to reconstruct on improvements to the safety, efficiency and amenity and widen the road to 7 metres with sealed 2 for users of the network. An annual allocation of metre shoulders. This special road safety project $15 million is available for regions to fund these types addresses the concerns of industry and the local of projects. In 2005-06, 72 projects were funded or part community by improving the road configurations. funded under NSIP. Typically, total projects costs are • The widening and reconstruction of 1.4 kilometres less than $1.5 million for this program. on the northern approach to Donnybrook was completed in May 2006 at a cost of $1.1 million. South West Highway (Metro Region) This work improves safety providing a wider seal This $1 million project helped to improve the Thomas and sealed shoulders for cyclists and local orchard Road intersection which included the installation of equipment to move along the highway clear of traffic signals and was completed in December 2005. other traffic. The local community and the Shire of Serpentine- • The widening of 3.7 kilometres of highway between Jarrahdale, with Main Roads’ funding and assistance Donnybrook and Kirup from 6.8 to 8 or 9 metres will carry out landscaping works in July 2006. was completed in February 2006 at a cost of Coolgardie – Esperance Highway (Goldfields $1.1 million. This work will greatly improve the Esperance Region) safety of this section of highway and forms part of an ongoing program to widen and upgrade Significant projects include: South Western Highway between Donnybrook • The widening, reconstruction and overlay to 9 and Bridgetown. metre wide seal including 1 metre sealed shoulders from the Coolgardie – Esperance Highway to Emu Ravensthorpe Nickel Operation Rocks South. Work to the value of $1 million was (Great Southern Region) completed in June 2006. This project has delivered The increase in heavy road transportation servicing significant safety benefits as well as a major the mine will impact greatly on South Coast Highway reduction in maintenance costs each year. between Ravensthorpe and Esperance. With the • Reconstruction and widening of the intersection emphasis mainly on the carting of nickel concentrate of the Coolgardie – Esperance Highway and the and sulphur between the mine and Esperance Port, Goldfields Highway was completed in June 2006. there will also be an increase in heavy vehicles and Combined with a Road Use Efficiency project to regular commuter traffic entering the mine site. Some the south, these works provide a wider and safer $11.5 million has been allocated over the next five intersection to accommodate movements of both years to complete six passing lanes, various sections east-west and local heavy vehicles. The combined of widening works and specific safety projects such value of these projects was $1.4 million. as upgrades to substandard curves and various intersections. Marble Bar Road (Pilbara) This special road safety project widened and sealed Contracts for the first stage of these works, the the shoulders on Marble Bar Road. The road provides construction of two passing lanes ($2.3 million) including access to important mining and tourist locations. the replacement of the Dalyup River West Bridge Improving the standard of the road provides major ($2.3 million) on the South Coast Highway commenced safety benefits as road trains account for up to 16% in March and were completed in June 2006. of the traffic on this section of road. $260 000 was

provided for the shoulder work. « PREVIOUS CONTENTS NEXT « 28 Main Roads Western Australia Annual Report 2006

Albany Highway (Great Southern Region) Great Eastern Highway (Wheatbelt North The objective of this project is to provide a minimum Region) standard of road formation for Albany Highway. Works on the Great Eastern Highway include: The scope of the proposed work (22 kilometres north • Intersection improvements at Hawke Avenue and and 30 kilometres south of Kojonup townsite) will De Castilla Road incorporating widening and turning improve the level of service and hence safety, by pockets and an extension of the Bakers Hill passing reducing the frequency and severity of road crashes. lane, westbound were completed in June 2006 at a The works catered for the widening of the unsealed cost of $600 000. shoulder to accommodate a 3.5 metre wide road lane • Installation of street lighting at Linley Valley Road, carriageway and a 0.5 metre sealed shoulder on a Hawke Avenue and Jordi Road intersections minimum 1.2 metre wide shoulder with audible edge on Great Eastern Highway will be completed in line installed throughout. July 2006. These works will cost $70 000 and The section of shoulder recondition works were planned will provide an improved level of safety for road to be fully contained within the existing road reserve and users at night. were constructed and finished in the 2005-06 financial • Works to install street lighting at Bindoon-Moora year at a cost of $2.6 million. Road and Dewars Pool Road intersections on Great Northern Highway was completed in June 2006 Perth Bunbury Highway (South West Region) costing $250 000. Lighting at these intersections Projects on the Perth Bunbury Highway include: will provide an improved level of safety for road users • The construction of a dual use path connecting the at night. Allnutt Street Bus Station (and future train station) to Pinjarra Road and Mandurah Centro shopping Shepperton Road/Oats St Intersection centre completed at a cost of $100 000. This forms (Metro Region) the first stage of a project to provide a dual use path A contract was awarded in May 2005 to provide along Perth Bunbury Highway (Fremantle Road/ channelisation improvements to the intersection. Mandurah Bypass) from Allnutt Street to Right turn lanes from Shepperton Road to Oats Street Leslie Street. were added along with improvements to cyclist and • The installation of guardrail and the reduction in the pedestrian facilities, with work completed in February slope of roadside embankments was completed 2006 at a cost of $1.4 million. It is anticipated that south of Mandurah at locations with higher this will reduce the number of right angle crashes and embankments at a cost of $500 000. This work will improve efficiency through this busy intersection. greatly reduce the risk of severe crashes occurring Toodyay Road Passing Lanes (Metro Region) at these locations. A contract was awarded in January 2006 for the Goldfields Highway/Boorara Road Intersection construction of three eastbound passing lanes along (Goldfields Esperance Region) Toodyay Road between Red Hill and Berry Road for The reconstruction of the Goldfields Highway/Boorara $3.3 million. Two passing lanes have been completed Road intersection was completed in May 2006 at a with the third passing lane due for completion in cost of $440 000. The intersection is located on the December 2006. These works will provide additional Kalgoorlie Eastern Bypass and is the main access for and safer passing opportunities. heavy vehicles entering the Superpit operations. The works provided widening, drainage improvements and reconditioned the poor pavement for this busy section

of road within Kalgoorlie-Boulder. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 29

Local Impact Committee Road Use Safety Improvements The State Government’s Freight Network Strategy Performance Indicators resulted in the establishment of a Local Impacts Road Fatality Rate Committee (LIC) to identify the changes and The graph shows the road fatality rates (per 100 million improvements necessary to better manage traffic vehicle kilometres travelled) from 2001-05 for Western activity, including freight, in the south west metropolitan Australia and Australia-wide. As for previous years corridor. The LIC recommended a number of road the Western Australian fatality rates have followed a improvement proposals. Actions that have been downward national fatality trend. completed in 2005-06 include:

• South Street Bus Priority Lanes from Kwinana ,>`Ê>Ì>ÌÞÊ,>ÌiÃ Freeway to Roe Highway – Stage 1 ($40.5 million) «iÀÊ£ääÊ Ê6i ViÊiÌÀiÃÊ/À>Ûii`Ê6/® • Intersection improvements on Leach Highway at £°ä North Lake Road ($50 000)

ä°n Rail Safety Program Main Roads has responsibility for funding the annual railway level crossing renewal and upgrades program ä°È for the previous Government network. In the current year, seven level crossings were upgraded from passive ä°{

control (Stop or Give Way signs) to active protection ,>`Ê>Ì>ÌÞÊ,>Ìi (Flashing Lights and Boom Barriers) at a cost of approximately $1.2 million. A further 11 crossings ä°Ó had time expired equipment renewed at a cost of

approximately $1.7 million. Ongoing programs for the ä°ä Óää£ ÓääÓ ÓääÎ Óää{ Óääx next two years have been developed at an estimated >i`>ÀÊ9i>À annual cost of $4.5 million. /Ì>Ê7 /Ì>ÊÕÃÌÀ>> Main Roads provides 50% of annual level crossing maintenance for public roads contributing approximately The number of road fatalities occurring in Western $1.7 million this year. Approximately two thirds of this Australia over the last five years is shown below: funding goes to the freight network operated by WestNet Rail and the remainder to the Public Transport Authority. Year Western Australia Road Fatalities 2001 165 2002 179 2003 179 2004 179

2005 162 « PREVIOUS CONTENTS NEXT « 30 Main Roads Western Australia Annual Report 2006

Serious Road Injury Rates ÌÀLÕÌ}Ê,>`Ê ÛÀiÌÊ>VÌÀÃ As displayed in the graph, the number of serious road {ä injuries, as measured by an overnight admittance to Îx hospital, per 100 million vehicle kilometres travelled for Western Australia remained fairly constant between Îä 2002 and 2005. Óx

-iÀÕÃÊ,>`ÊÕÀÞÊ,>Ìi Óä «iÀÊ£ääÊ Ê6i ViÊiÌÀiÃÊ/À>Ûii`Ê6/® £x ¯Ê"VVÕÀÀiVi £x

£ä £Ó x

ä -Ì>Ìi V> /Þ«iÊvÊ,>`

È ,>`ÊÃÕÀv>Vi ÃÃ}ÉVÀÀiVÌÊÃ}Ã ,>`ÊÃ >«i >vÕVÌÊvÊÌÀ>vvVqÃ}>ÃÉÀ>Ü>ÞqVÀÃÃ} -iÀÕÃÊ,>`ÊÕÀÞÊ,>Ìi ÀâÌ>ÉÛiÀÌV>Ê}iiÌÀÞ ,>`Ã`iÊVi>ÀÊâi Î -} ÌÊ`ÃÌ>Vi "Ì iÀ

ä Community Perception of Road Safety Óää£ ÓääÓ ÓääÎ Óää{ Óääx The 2006 Community Perceptions Survey shows >i`>ÀÊ9i>À that road safety is rated as a very important issue Road Environment Contribution to Road Trauma for Western Australians. The results indicate weaker From mid 2005, all fatal crash location investigations performance across both freeways and highways. collected information on the contribution to road trauma Some of this fall may be attributed to the greater than of road environment factors on State, National and local average number of fatal crashes in early 2006 and the roads. These road factors include horizontal and vertical significant disruption to the community resulting from geometry, sight distance, missing or incorrect signs and major infrastructure and upgrading projects, such as the roadside clear zones. Additionally human factors such New Metro Rail works. as road traffic code violations, excessive speed, fatigue, ÕÌÞÊ->ÌÃv>VÌÊÜÌ Ê,>`Ê->viÌÞ inattention and blood alcohol are included in the study, where known from Police reports. £ää

As information has only been compiled for a relatively short time, a more robust indicator will be produced as nä the sample size grows from its current level of 80 fatal

crash investigations. The initial results indicated that for Èä the investigations to date: • Road environment factors are represented in 40% of {ä fatal crashes ¯Ê->ÌÃv>VÌ • Human factors are represented in 78% of fatal crashes Óä • Vehicle related factors are represented in 17% of

fatal crashes ä iÌÀÊÀiiÜ>ÞÃ iÌÀÊ} Ü>ÞÃ ,ÕÀ>Ê} Ü>ÞÃ • Road environment and human factors are both ,>`Ê/Þ«i represented in 35% of fatal crashes. Óää£äÓ ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ

>V>Ê9i>À « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 31

Road Network Operations Management

The objective of this program is to optimise real time management of the network, provide traveller information and support delivery of projects.

During 2005-06, almost $82 million was expended on Road Network Operations Management which made up 11% of the total road program. The following are some of the works and activities undertaken during the year.

Road Safety As part of Main Roads’ role of managing the road network operations, Main Roads monitors safety performance and undertakes various research and trials to continually improve its performance. Main Roads is represented on the State’s peak body for road safety, the Road Safety Council, which has produced the Road Safety Strategy for Western Australia. The physical delivery of safety related works are included in the Road Use Safety Improvement Program, this program focuses on the supporting initiatives that determine the most appropriate projects to deliver.

Road Safety Performance Two main charts are used to measure Road Safety Performance. They are Safety Performance Charts and Crash Incident Charts. The charts enable asset managers to make comparisons of crash risks within regions, between regions and over the whole State road network. The charts are a useful tool to prioritise work on road sections with poorer levels of safety. Safety Performance Charts for the period 2000 to 2004 are complete and preparation of charts for the period 2001 to 2005 is in progress.

During 2005-06 Crash Incident Charts were developed using the current five year crash data. The charts enable a visual interpretation of concentrations (if any) of specific crash user groups and/or collision types. As a result, individual road-user groups and collision types can be compared assisting in identifying work prioritisation of road sections with poorer levels of safety.

Speed Monitoring Vehicle speed measurements were taken on higher speed roads (60 to 110 kilometres per hour) at approximately 210 sites statewide to measure compliance and trends over the period 2000 to 2006. The results indicated that: • Over the total network the 2005 compliance rate to the speed limit remained unchanged from the 2004 compliance rate at 61%, up from 56% in 2000 • Improved compliance rates to the speed limit on 60 and 80 kilometre per hour roads, up by 2 and 3% respectively, • On 90 and 110 kilometre per hour roads compliance rates improved by 3 and 5% respectively,

• Compliance on 100 kilometre per hour roads remained relatively stable. « PREVIOUS CONTENTS NEXT « 32 Main Roads Western Australia Annual Report 2006

In October–November 2005 a separate speed survey evaluation will be carried out for a period of 24 months was conducted on the Perth metropolitan local roads in before wider application of the principle is considered. order to assess changes in driver behaviour since the introduction of the 50 kilometres per hour general urban Rumble Strips speed limit. The study showed that 50 kilometre per A trial of rumble strips (audible pavement markings) hour roads continue to have reductions in the average commenced in 2002 at 14 regional railway level speed of vehicles. On 60 kilometre per hour roads there crossings on high-speed roads with Stop or Give Way were small reductions in average speed such that the signs. Post-installation speed surveys were completed mean speed is now below 60 kilometres per hour. in May 2004. Additional speed surveys have been carried out in April to June 2006 on a sample of Give “Speed Limited Area” Trial Way protected crossings with an increased number There are currently a number of limitations in applying of rumble strip groups in order to further investigate speed zoning to semi-rural areas, especially where inconclusive findings on the effectiveness of the strips at roads with substandard seal widths or unsealed these types of crossings. A supplementary report as to surfaces preclude speed zoning under Australian their effectiveness will be completed by October 2006. Standards. A semi-rural precinct was selected in the Swan Valley for a speed-limited area trial. The area was Railway Level Crossing Safety selected to cover a mix of roads and features that could Main Roads continues to use the Australian Level be expected to be found in a semi-rural area including Crossing Assessment Model (ALCAM) to assess all level formal speed-zoned roads, school zones, built-up crossings on public roads. Over the next three years areas, open limit areas, roads with pavement seals less a comprehensive risk profile of approximately 1 300 than 5.5 metres and unsealed roads. public road level crossings throughout the State will be compiled. In conjunction with Local Government, road asset, road condition, traffic volume, eighty–fifth percentile speed The risk profile data will enable Main Roads and rail and crash data information was collected and reviewed. operators to better plan ongoing upgrades and renewal Public consultation was carried out with an existing programs by targeting crossings with higher risk such community advisory group with invitations also extended as those on high speed passenger lines or major heavy to some specifically affected residents. The speed- haulage routes. At the same time a comprehensive limited area trial commenced at the start of 2005 and an State level crossing database is being developed which will eventually populate a national level crossing database. This is expected over time to provide a higher standard and uniformity of level crossing protection throughout Australia.

Main Roads has encouraged the major railway operators by providing and supporting the ALCAM system to railway operators Public Transport Authority and WestNet Rail including specialised training. The system will enable these operators to conduct similar risk profiling and database development for a further 1 500 non-public road crossings in Western Australia. Ongoing development this year will see the ALCAM system and training being offered to other large private rail operators such as Pilbara Iron and Hamersley Iron. All level crossings will be assessed for risk over the next

three years « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 33

Traffic Management Initiatives Intelligent Transport System The Traffic Operations Centre is currently upgrading its hardware and software capabilities. The system upgrade will allow for full integration of existing and future Intelligent Transport System installations such as Variable Message Signs, Traffic Data Collection, Closed Circuit TV Cameras and automated incident detection.

In 2005-06, Closed Circuit TV Cameras were installed in areas around Mandurah and Fremantle, real time vehicle detection equipment for freeways was purchased and two portable variable message signs were acquired. This infrastructure will enhance Main Roads’ Incident Management capability. There are now over 220 signalised sites fitted with audio tactile push buttons Training Main Roads continues to provide administrative and technical support to initiatives across many aspects of with regional stakeholders and the Western Australian road safety in Western Australia. This includes direct Farmers Federation. Agreement has been made involvement in the training of road safety auditors and whereby Main Roads will arrange for the manufacture road environment investigators for serious crashes, and and distribution of stock crossing signs to farmers. general Traffic and Safety Seminars. The first of these The guidelines also outline the requirements, conditions commenced in the Mid-West region in May 2006 and and cost sharing arrangements for the installation of will be extended to all other regions in the latter half stock underpasses. of 2006. Signal Backup Pedestrian Facilities Main Roads conducted a 12 month trial of an Main Roads introduced the ‘Pedestrian Crossing Uninterruptible Power System (UPS) to determine Facilities at Signalised Intersections Strategy’ in 1999 to its suitability as a power back up system for traffic improve safety for pedestrians and increase uniformity signals. The trial took place at six metropolitan with standards used in other Australian States. In the intersections with systems that would be suitable to past year, 38 sites were reviewed and modified to backup traffic signals for a minimum of four hours in the enhance pedestrian facilities with priority given to Stirling event of a power failure. The system switches to battery Highway, Canning Highway, Albany Highway and sites supply as soon as power is lost. The trial has been identified through consultation with the Disability Action considered successful and the UPS units have proven Group. There are now over 220 signalised sites fitted to be reliable and fit for the purpose. The transition with audio tactile push buttons. from mains power to UPS and back when power is restored is seamless and the public is not affected as Stock Crossing Guidelines traffic signal operation is uninterrupted. The trial is being Main Roads has developed guidelines for droving continued for another twelve months to further test the stock across or along State roads and the conditions performance and durability of the batteries with a view for the installation for stock underpasses under State to having back up power at all times to 50 of the most roads. The guidelines were developed in consultation

important intersections. « PREVIOUS CONTENTS NEXT « 34 Main Roads Western Australia Annual Report 2006

School Zones Events Management Main Roads has been trialling the use of solar powered During 2005-06 a Code of Practice for Traffic flashing lights at several School Zones. The results of Management at Events has been developed in the trial have been mixed, with the lights showing some consultation with stakeholder groups including the positive effects on School Zones where the limit was Western Australia Police, Local Government and over 60 kilometres per hour but the lights have not professional and volunteer event organisers and proven to be as reliable as first anticipated. Main Roads participant groups. A Traffic Management for Events has spent considerable time researching the best Advisory Group represented by these stakeholders has options to ensure the most appropriate technology overseen the development of the Code of Practice. is utilised to provide a safe, cost efficient and reliable The Code describes the various laws and regulations means to monitor the operation of flashing lights. associated with conducting events on roads as well as the application and approval processes that must take A specification is being prepared for a new trial of place in order for event organisers to close a road or flashing lights in the next financial year to further control traffic for an event. The Code introduces new investigate the effectiveness of such lights. temporary warning signs and training requirements for Currently Main Roads is progressively installing events staff that will be designed for event purposes. 40 kilometres per hour black on yellow road marking Local Governments will be invited to sign an ‘Instrument on school zone approaches for those roads speed of Authorisation’ delegating them powers under the zoned at 60 kilometres per hour to complement existing Road Traffic Code to erect and display road signs to signage. To further improve awareness of school zones ‘Authorised Bodies’. a modified high visibility sign has been developed for use initially in select locations.

Flashing lights being trialled at School Zones « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 35

Works on Roads The Commissioner of Main Roads has legal responsibility for all road signs and traffic control devices including temporary traffic signs and devices installed at worksites. External parties such as Local Governments have similar obligations in respect to works on their roads through an Instrument-of-Authorisation issued by the Commissioner of Main Roads to provide them with authority to erect and display temporary road signs at worksites. In January 2006, Main Roads wrote to the Western Australian Local Government Association and to the Institute of Public Works Engineering Australia (WA Division) outlining proposed changes to the training courses for Main Roads Basic Worksite Traffic Management and Traffic Controller Accreditation. The Traffic Operations Centre is fully integrated with The new training will be based on the latest Units the Customer Contact Centre enabling quick and efficient responses as part of Main Roads incident of Competency offered under the National Civil management practices Construction Training Package with some exemptions. These new courses are expected to be available before the end of 2006. The Traffic Operations Centre is fully integrated with the Traffic Operations Centre Customer Contact Centre enabling quick and efficient The Main Roads Traffic Operations Centre manages the responses as part of Main Roads incident management Metropolitan road network and is a central point for real- practices. In addition Main Roads Highway Emergency time traffic information 24 hours a day. It uses intelligent Response Operators (HERO’s) also operate out of the transport systems devices such as variable message Traffic Operations Centre. signs and traffic monitoring cameras to achieve its aim to ensure the efficiency of the road network during peak Traffic reports can now be seen on the Channel commuter travel times, special events and unplanned Seven Sunrise program every morning from 6.30 am. incidents. The Traffic Operations Centre also maintains Main Roads has signed an agreement with an interstate regular links with the media to report traffic congestion, company to broadcast traffic reports from the Traffic hazards and incidents. Officers at the Traffic Operations Operations Centre five times during morning peak traffic Centre monitor, coordinate and adjust traffic signal from 6.30 am to 8.30 am. operation across the State to: The Traffic Operations Centre also offers tours attracting • Improve traffic efficiency a wide variety of industry and general public groups. • Assist the movement of traffic associated with The tours give an overview of the centre and present a sporting and social events, e.g. AFL matches at video that explains the construction and maintenance Subiaco Oval and Australia Day fireworks (Skyworks) of the Graham Farmer Freeway traffic tunnel and how • Assist with the movement of traffic affected by road traffic is managed in the metropolitan area. Tours are works or incidents available to all groups. To find out more call 138 138 • Assist emergency services by providing route and ask about the Traffic Operations Centre tours. pre-emption (green signals) when requested,

e.g. Police escorts. « PREVIOUS CONTENTS NEXT « 36 Main Roads Western Australia Annual Report 2006

Graham Farmer Freeway Tunnel Control Centre Cooperation with State Emergency Services Perth’s Graham Farmer Freeway Tunnel is one of the and Other Agencies most advanced in the world, and its control systems, Main Roads’ Incident Management response does which include traffic management, incident detection, not occur in isolation, in many incidents there is a plant monitoring and communications, are also multi-agency impact. Main Roads participates in the managed from Main Roads’ Traffic Operations Centre. State’s Emergency Management Framework and Each weekday, the tunnel records approximately in regional areas participates in District and Local 100 000 vehicles passing through it. The tunnel is Emergency Management Committees. Specific Incident monitored 24 hours a day by specialist operators who Management Protocols have been developed in are responsible for maintaining the tunnel’s safety, air conjunction with the Western Australian Police. Defined quality, lighting and traffic flows. roles and protocols, when responding to incidents, will further strengthen the cooperation that currently exists Incident Management between the agencies. Main Roads has always been involved in Incident Future Challenges Management. This role and the importance placed on There are three main drivers that present the future it continue today. An important role of this is continuity challenges facing Main Roads in relation to Incident of service. Main Roads has recognised that the broader Management. They are: community can incur considerable economic and • Growth in road usage both in terms of traffic social costs when incidents take place that affect the volumes and freight continuity of service. As a consequence of recent • Increasing interdependence of the various incidents Main Roads initiated improvements to its transport modes Incident Management practices. The aims are to reduce Main Roads’ response time to take control of incidents • Security related issues. and restore access, when an incident occurs. Public expectation of reliable access and the costs of delays to industry with ‘just in time’ management Policy and Plans of business translates to the need for Main Roads to Improvements to Main Roads Incident Management be able to respond quickly and effectively to minimise practices have included the development and adoption delays as a result of incidents that occur on the State of a Corporate Incident Management Policy. The policy Road Network. clearly outlines the structures and systems that will The extension of the rail network inside Perth’s Freeway be adopted during incidents. All Regional and Critical reserve has implications for both systems in the event of Business Activities have developed Incident Management incidents on either system. Work has commenced with Plans that have structures and protocols clearly defined. the Public Transport Authority to identify protocols and The Incident Management Plans include contingency responses in the event of an incident occurring. plans for various sections of road or processes. The metropolitan area alone has in excess of 120 contingency Future Actions plans prepared for Perth’s major road network. To ensure that Main Roads can meet the future challenges there will be a focus on the following areas: Critical Infrastructure • Training and exercises to build internal capacity for The threat of terrorism against infrastructure along effective response with the potential disruption to normal daily activities • Continued development of contingency plans with has been an area of focus at all levels of Government an emphasis on a risk-based approach across Australia. Main Roads has participated in • Development of Incident Management Protocols several exercises and planning activities to assist in with the Public Transport Authority. dealing with security issues. This has included the To guide these actions and identify future improvements identification and development of Incident Management an Incident Management Strategic Improvement Plan plans for critical infrastructure.

will be developed over the next year. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 37

Heavy Vehicle Operations Main Roads also has a key role in communicating Heavy transport contributes to the prosperity and and consulting with the community, the heavy vehicle welfare of the community by delivering goods cheaply, transport industry and other key stakeholders including efficiently and safely. Freight vehicles are used for Local Government. many purposes and are subject to different regulations according to size and weight. The community has Accreditation created a demand for the movement of goods and the Western Australian Heavy Vehicle Accreditation was more prosperous the State becomes, the greater the implemented in legislation on 1 July 2002. Accreditation demand for freight movement. became compulsory to operate permit vehicles as of 1 July 2003 and was actioned with close involvement Main Roads is responsible for the regulation of road from industry and Government. Currently there are over network access for vehicles in excess of 19 metres 3 600 accredited operators. Accreditation is a way of in length, 4.3 metres in height, 2.5 metres in width or ensuring the road transport industry operates in a safer 42.5 tonnes gross mass. This regulation involves a manner with safer vehicles and safer drivers. number of tasks, including assessment of the suitability of roads proposed as transport routes, issuing of The Western Australian Heavy Vehicle Accreditation permits, setting of conditions for certain aspects of heavy scheme is unique in Australia and covers Maintenance transport operations, administration of the Western Management for vehicles and Fatigue Management for Australia Heavy Vehicle Accreditation requirements and drivers. In fact, Western Australia is the only jurisdiction enforcement of transport laws for heavy vehicles. where Accreditation is mandatory.

Heavy transport contributes to the prosperity and welfare of the community by delivering goods cheaply, efficiently and safely « PREVIOUS CONTENTS NEXT « 38 Main Roads Western Australia Annual Report 2006

To ensure operators are meeting the requirements of As such, a Period Permit approach has been developed Western Australian Heavy Vehicle Accreditation, every which provides most of the benefits of a Notice whilst accredited operator is required to have annual third still maintaining the necessary management control for party audits. In addition, Main Roads undertakes a State and Local Governments. program of random second party audits to monitor the Whilst some Period Permits (Class 1 Oversize, Class performance of the system as a whole. In 2005-06, a 1 Over-mass and Class 3 Oversize Divisible Products) contract auditors’ panel was established to ensure that have been released over the past twelve months, the at least 5% of accredited operators are audited annually. release of the Class 2 and 3 Restricted Access Vehicles In 2005-06, the Western Australian Heavy Vehicle Period Permit on 1 July 2006 represents a major step Accreditation process was reviewed. This review was forward using the network based approach. initiated in 2004 from industry pressure to improve This shift from an individual vehicle and route the system and was performed with involvement from approach to a network approach for permits will industry bodies under the guidance of the Ministerial enable Main Roads and Local Government to Road Freight Committee. develop a more strategic approach to heavy vehicle The review recommended a three-phased approach access management. This enables the evolution of to improving administration processes, the legislative more efficient and effective networks by addressing framework and the setting up of a third module on Load issues such as connectivity, stability and equity for all Management. These recommendations were endorsed operators. This approach will also address industry by the Minister for Planning and Infrastructure in concerns regarding delays in permit processing times December 2005. These changes will assist operators to with significant savings in time and administration costs meet the requirements of the pending Compliance and being realised. Enforcement Bill. In 2005-06 there was a 10% reduction in the number of permits issued compared to the previous year, which is Notices and Permits Networks directly attributable to the introduction of Period Permits To address industry concerns regarding delays in and the shift to a network approach. This represents permit processing times, Main Roads established the a significant savings in time and resources for industry Heavy Vehicle Access Project. The aim of the project and Heavy Vehicle Operations. Main Roads will continue is to deliver both short-term relief and longer term to refine and develop Networks by working closely with improvements that will be capable of managing heavy industry, Local Governments and the Department for vehicle access into the future. Planning and Infrastructure. The central change being developed is to move management of heavy vehicle operations from an Compliance and Enforcement individual vehicle and route focused approach to a Compliance and Enforcement activities play a key role network based approach. Under the individual vehicle in ensuring effective and safe management of heavy and route approach, access to roads was on an vehicles on the road network. The Road Transport individual basis. Under the new approach, a number Compliance section controls mass and dimension of pre approved roads have been grouped together to limits on the State’s road and bridge system. They form a network. A series of these networks cater for the ensure that Restricted Access Vehicles are operating various types of vehicles utilised. within the conditions set under Main Roads Permits and Accreditation. It was originally intended to implement Notices to provide access to these series of networks which have Vehicles are inspected for roadworthiness, load security, been developed in conjunction with Local Government. driver and vehicle licensing conditions and, under an However, issues such as the proposal to transport iron arrangement with the Department of Consumer and ore in the Mid West by road has caused Government Employment Protection, compliance with the movement and Main Roads to reconsider whether the level of of dangerous goods.

access that Notices will provide is appropriate. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 39

In addition to the broad on-road enforcement function, • Patrols by the Transport Inspectors on South the Transport Inspectors also educate and work with Western Highway were stepped up in June 2005 the transport industry, other agencies and stakeholders following a fatal crash in the area. The focus to improve standards. Percentage of non-compliance continues to be placed on heavy vehicle issues by category of vehicles inspected is as follows: movements, particularly woodchip and logging operations in the area. Joint agency exercises have *iÀViÌ>}iÊvÊ"vviViÃÊÛÃÊ6i ViÃÊÃ«iVÌi`Ê ÓääÎä{ÊÌÊÓääxäÈ also been held with local Police. • Ongoing support has been provided for the xä development of the National Road Transport Reform (Compliance and Enforcement) Bill. The Bill was {ä developed by the National Transport Commission with influence from key stakeholders, including

Îä Commonwealth, State and Territory road transport agencies, Police and the road transport industry.

Óä The Bill establishes a framework for improved ¯ÊvÊ"vviViÃ compliance outcomes across the road transport industry. This will lead to increased road safety, reduced £ä damage to infrastructure and the environment and minimise unfair competitive advantage and other ä adverse impacts of road transport on the community. ÓääÎä{ Óää{äx ÓääxäÈ >V>Ê9i>À The main benefit of the legislation is expected to be improved compliance by attributing legal liability through "ÛiÀ>`Ã *iÀÌ VVÀi`Ì>Ì the chain of responsibility and changes to sanctions and iÃ> >`Ê,iÃÌÀ>Ì 6i ViÊ iviVÌÊ ÌViÃ penalties. The penalty framework combines fines and /Þ«iÊvÊ"vviVi sanctions in a way that will maximise compliance and minimise the need for enforcement. It is anticipated that Overloads/dimensional: Since 2004-05 only actionable the Bill will be introduced in Parliament in the Spring 2006 overload and dimensional offences have been recorded. session and will be ready to implement by mid-2007. Previously, all offences including non actionable offences were recorded. Intelligent Access Program Vehicle defect notices: Vehicles with mechanical defects have only been included for the 2005-06 period as the method of The Intelligent Access Program (IAP) is a voluntary recording and reporting in previous years was inconsistent. program which provides heavy vehicles with access, Both Work Orders and Cautions now make up Vehicle or improved access, to the Australian road network in Defect Notices. Note: Some vehicles may have multiple offences return for monitoring of compliance with specific access conditions. It provides a third generation of access to Compliance key achievements for 2005-06 include: the road network, known as intelligent access. Transport • Over 10 000 vehicles were inspected in 2005-06, operators may negotiate with jurisdictions to gain an increase of 25% from the previous year. enhanced access to the road network and are granted approval in return for demonstrating compliance to • A new database was set up to capture compliance specific operating conditions, otherwise known as information for the purposes of meeting the reporting IAP Conditions. With these third generation schemes, needs of both internal and external stakeholders. jurisdictions can better manage heavy vehicle access and A suite of compliance reports have been developed at the same time have a greater degree of confidence of by working with industry and are now issued compliance than for first and second generation schemes.

quarterly including through the Main Roads website. « PREVIOUS CONTENTS NEXT « 40 Main Roads Western Australia Annual Report 2006

Main Roads is a full member of Transport Certification ÕÌÞÊ->ÌÃv>VÌÊÜÌ ÊÌ iÊ*ÀÛÃÊvÊ,>`Ã Australia Ltd (TCA), an independent company established £ää to manage the voluntary program. Main Roads is active at a working level in the development of the necessary standards, systems and guidelines. Whilst IAP is still nä being developed and legislative amendments are required, Main Roads is working with industry volunteers Èä in developing trial applications.

Performance-Based Standards {ä The transport of road freight is regulated by tightly defined limits on vehicle mass and dimensions. ¯ÊvÊ,iÃ«`iÌÃÊ->ÌÃvi` Óä However, a forecast that the amount of freight will double by 2020, has increased the pressure on the ä system to cater for the demands for efficiencies that Óää£äÓ ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ

include reductions in heavy vehicle accidents. >V>Ê9i>À Performance-Based Standards (PBS) is seen as a means of facilitating innovation in heavy vehicles, which will Road Network Permitted for use by increase the productivity of the Australian heavy vehicle Heavy Freight Vehicles fleet. For this reason, PBS is seen as a key reform that To maintain road safety and guard against infrastructure is required to meet the ongoing challenge posed by damage, restrictions are placed on trucks that are larger the increase in Australia’s freight task. It is a system of vehicles. These include B-doubles, double road trains and regulation that bases decisions on vehicle performance triple road trains. Because of the relatively high efficiency measures rather than the traditional prescriptive approach. of these vehicles, the proportion of roads accessible to Main Roads continues to be an active participant them is an important factor in the overall efficiency of in the PBS project which is being managed by the freight transport in this State. This indicator relates to the National Transport Commission. Under the direction efficient movement of goods within Western Australia. of the Council of Australian Governments, the National Transport Commission and Austroads are fast-tracking ,>`Ê iÌÜÀÊ*iÀÌÌi`ÊvÀÊÕÃiÊLÞÊi>ÛÞÊÀi} ÌÊ6i ViÃ the development of PBS, with a view to having agreed £ää model legislation finalised in 2007-08.

nä Road Network Operations Management Performance Indicators Èä Community Perceptions Survey The community was asked their perceptions of the provision of roads in the Community Perceptions Survey. {ä Main Roads performance in the provision of roads has

marginally improved, up by two percentage points during Óä

the year, from 88% in 2005 to 90% in 2006. ¯ÊvÊÌ iÊ-Ì>ÌiÊ,>`Ê iÌÜÀÊVViÃÃLi

ä Ê ÕLi ÕLiÊ,/Ê /À«iÊ,/ 6i ViÊ/Þ«i ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ

>V>Ê9i>À « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 41

Road Infrastructure for Community Access

The objective of this program is to provide infrastructure that will improve personal mobility and community access.

This is achieved through improving current standards of access including increasing quality of access where appropriate, providing levels of access commensurate with community expectations, determining what those community expectations are and meeting the minimum level of appropriate access.

During 2005-06, more than $106 million was expended on Road Infrastructure for Community Access which made up 14% of the total road program. The following are some of the works undertaken during the year.

Main Roads Liaison on New Metro Rail Projects The Public Transport Authority (PTA) established the New Metro Rail office (NMR) to: • Upgrade and extend the Northern Suburbs Railway • Upgrade the Armadale line and extend a spur line through to Thornlie • Construct the Perth to Mandurah Southern Suburbs Railway (SSR).

Main Roads is a key stakeholder in the project and is working closely with the NMR office to ensure delivery of the project to a high standard. The involvement of Main Roads has included: • Providing key staff to the NMR Project Team • Project/Contract Management of Package E • Review and approval of all changes to Main Roads’ current and future assets • Coordination and approval of all traffic management required for construction of the project.

With the works on the Northern Suburbs Railway and Perth to Thornlie line now complete, work this year has focused on construction of the Perth to Mandurah railway line.

A large proportion of the railway is located on land vested with the Commissioner of Main Roads within operating freeways. This adds to the challenge of constructing the rail project without major disruption to road traffic, including bus operations. Main Roads has worked in partnership with the PTA to maintain traffic operations during construction.

These projects generate approximately $200 million of new road and bridge assets for which Main Roads will assume responsibility. The Mt Henry Bridge was widened to provide a new

northbound carriageway « PREVIOUS CONTENTS NEXT « 42 Main Roads Western Australia Annual Report 2006

New Metro Rail Package E Between the Canning Interchange and Jandakot, the Main Roads is managing the delivery of the Southern freeway carriageways have been realigned to widen the Suburbs Railway (SSR) Package E (Mt Henry Bridge median for the rail corridor. Railway drainage, formation, and Narrows Bridge modification) on behalf of the pier protection, overhead protection screens and Public Transport Authority. The SSR project will provide concrete median barriers have been constructed. significant environmental and social benefits to the State. The ramps at Leach Highway and South Street The $122.8 million Package E project creates a railway interchanges have been realigned and earthworks corridor in the median of the freeway between the constructed to accommodate the railway stations. Narrows Bridge and Jandakot. The project comprises The Principal Shared Path (PSP) has also been construction and modifications to the Narrows Bridge extended through these interchanges. and Mt Henry Bridge to accommodate rail, realignment of freeway carriageways and ramps, relocation of Gerard Street Bridge, Cannington the bus on-ramp bridge at Canning Highway and As part of the NMR project, the construction of construction of railway capping layer and median this bridge provides a link from Welshpool Road, concrete barriers. East Cannington to Albany Highway, Cannington. Construction of the bridge allowed the closure of the The contract was awarded in January 2004 and Crawford Street level crossing, located to the south of construction work commenced at Mt Henry Bridge in the proposed bridge, in advance of the opening of the May 2004. Works were essentially completed in May Thornlie Spur Line. 2006, with landscaping and revegetation currently in progress. The works were staggered to allow Main Roads managed the design and construction overlapping access for other NMR contractors to of the bridge which was completed in April 2005. commence tracklaying works in the new rail corridor The PTA provided funding of $2.6 million and the and to construct stations at Canning Highway, Leach balance of $1.6 million was provided by the City of Highway and South Street interchanges. Canning. Connections from the bridge to Gerard Street and Guthrie Street were constructed by the City of At the Narrows Bridge, a new southbound rail bridge Canning and the new bridge was opened to traffic in between the existing two Narrows traffic bridges was March 2006. constructed and the northbound traffic bridge was strengthened to carry the northbound rail where the Karratha – Tom Price Road Stage 2 northbound bus lane was previously located. (Pilbara Region) Northbound and southbound bus lanes have been This $125.8 million project will reduce the distance constructed between the Narrows and Judd Street, by road between Karratha and the Millstream area and the southbound carriageway has been realigned by approximately 48 kilometres. The new road will near Richardson Park to accommodate the future South significantly improve safety and will provide much Perth station. improved access between inland and coastal communities as well as providing better access to At the Canning Interchange, the northbound bus the National Parks and other tourist centres in the on-ramp bridge has been relocated sideways region. An alliance contract involving Macmahon, GHD, approximately 10 metres over the northbound Coffey Geosciences and Main Roads was signed on carriageway to provide room for the railway. 1 September 2005. Construction commenced in June The Mt Henry Bridge was widened to provide a new 2006 for completion by 2008. northbound carriageway. The existing bridge was strengthened to carry the railway where the northbound

carriageway was previously located. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 43

Carnarvon – Mullewa Road (Gascoyne Region) The gravel crossing was damaged each time the This 164 kilometre road, services the town of Gascoyne Gascoyne River flowed resulting in it being closed, Junction, pastoral properties and the Aboriginal often for over five months of the year as has occurred Community of Burringurrah, east of Gascoyne Junction. in both 1999 and 2000 and on several occasions in The road also provides access to the popular tourist 2004 for extended periods. The contract for the bridge locations of Rocky Pool, Kennedy Ranges and Mt. construction was awarded in November 2004 and Augustus. The 60 kilometre unsealed section of the completed in August 2005 at a cost of $7.1 million. road can be closed by relatively low rainfalls and this occurs on average for 10 days per year. This has the West Dalyup Bridge (Goldfields Esperance effect of isolating communities and industries. Region) A $2.2 million contract was awarded in mid February 2006 A Financing Agreement is in place between the Shires to demolish the old bridge and construct a new longer of Carnarvon and Upper Gascoyne and Main Roads to bridge over the West Dalyup River 30 kilometres west of fund a project to upgrade the road at a total estimated Esperance. The works were completed in mid June 2006. cost of $20 million over eight years. Construction This project is the final stage in the strategy to improve all commenced in 2000 and work is scheduled for bridges between Ravensthorpe and Esperance on the completion in 2007-08. In 2005-06, 30 kilometres of South Coast Highway, which were subject to damage seal were completed at a cost of $3.3 million bringing and closure during flooding in 1999 and 2000. The new the total length of sealed road to 104 kilometres. bridge provides significant safety, access and serviceability improvements over the old bridge. Bibbawarra Crossing (Gascoyne Region) The Bibbawarra Crossing Project consists of the Great Central Road (Goldfields Esperance replacement of the existing two-lane gravel crossing Region) with a low level concrete bridge. The crossing is under The Great Central Road is the Western Australian the management of the Shire of Carnarvon however section of the Outback Highway, which links Laverton funding has been provided to Main Roads under the in the North Eastern Goldfields through Uluru and State Initiated Projects on Local Roads program. Alice Springs in the Northern Territory to Winton in The Bibbawarra Road crossing provides an alternative Queensland. The 890 kilometre long road within to the Gascoyne River Bridge for access to the north Western Australia has had $6.8 million of improvements side of the Gascoyne River. since 1998, with $550 000 in 2005-06. This has improved the standard of the road servicing numerous Indigenous communities within the Central Desert area and also the increasing tourist and freight traffic using this route.

Cape Leveque Road (Kimberley Region) The Cape Leveque Road is a mainly unsealed road that provides primary access to communities on the Dampier Peninsula North of Broome. Much of the road has poor geometry and consequently becomes impassable during the wet season and is difficult to maintain. During 2005-06, 9.3 kilometres of the Cape Leveque Road was reconstructed and sealed at a cost of $2 million. This is part of an ongoing project to upgrade the road to increase serviceability, improve Bibbawarra crossing project replaced the existing two-lane gravel crossing with a low level concrete bridge safety and reduce maintenance costs. The works were

completed in November 2005. « PREVIOUS CONTENTS NEXT « 44 Main Roads Western Australia Annual Report 2006

Gibb River Road (Kimberley Region) Roadside Rest Areas (Wheatbelt North Region) The Gibb River Road is an important transport route In 2005-06, Wheatbelt North Region undertook servicing Indigenous communities, the mining industry refurbishment of several rest areas, at a cost of and the pastoral industry. The Gibb River Road is also $70 000, including: becoming an increasingly popular tourist route. • Installation of shelters and seats at the popular The reconstruction and sealing of a 2.2 kilometre Bindoon Hill parking bays off Great Northern section of a steep incline at the Galvans Gorge section Highway, north of Bindoon was completed in of the Philips Range was commenced in 2004-05 February 2006. Installation of lighting and electric and completed in November 2005 at a total cost of barbecues is also underway. $2.6 million ($1.8 million in 2005-06). The works will • Construction of improved access into Jibberding significantly improve safety and increase wet season Rest Area off Great Northern Highway, north of serviceability. Wubin was completed in September 2005. The improved access into this popular rest area The formation drainage and gravel of various sections provides improved safety for road users. of the Gibb River Road (Russ Creek Section) have been improved. This will increase wet season accessibility and reduce maintenance costs. The cost of these works was $750 000.

Brookton Highway (Wheatbelt South Region) Brookton Highway is a major inter regional route linking Perth and Esperance to the Wheatbelt. Tourists in cars and buses use this route to access attractions around Hyden, such as Wave Rock. Works completed on the Brookton Highway involved: • Upgrading sections between Corrigin to Gorge Rock at a total cost of $1.7 million. The “Lewis Realignment” was an upgrade of sub-standard horizontal curves with narrow seal 16 kilometres south-east of Corrigin. The works connect two previously completed sections of upgrade on the highway. Works were undertaken as a Direct Managed project in conjunction with a consortium of Shires including Corrigin, Kulin, Bruce Rock and Kondinin and was completed in May 2006. • Widening over seven kilometres of road east of Brookton to more effectively cater for heavy vehicle movements servicing the Brookton Grain Terminal and the strengthening of a section of four kilometres, 40 kilometres east of Brookton, to cater for additional grain cartage. Total cost of the project

was $1.5 million. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 45

Road Infrastructure for Community Bridge Standards Access Performance Indicators This indicator shows the extent to which National Road Standards Transport Commission (NTC) vehicles can travel on bridges, governed by strength requirements. The bridge This graph shows the extent of vehicle kilometres standards indicator gives an indication of Main Roads travelled on roads that conform to the operational ability to plan for and maintain bridges to changing standards of seal width, shoulder width and design load standards for freight vehicles. The following graph speed. The percentage of travel that occurs on roads indicates the percentage of bridges accessible to NTC meeting operational standards has not changed vehicles, reported over time: significantly over the last three years.

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Improving bridge standards in the Pilbara Region « PREVIOUS CONTENTS NEXT « 46 Main Roads Western Australia Annual Report 2006

Road Use Efficiency Improvements

The objective of this program is to improve the efficiency, capacity and utilisation of the existing road network.

Over 2005-06, almost $71 million was expended on Road Use Efficiency Improvements which made up 9% of the total road program. The following are some of the works and activities undertaken during the year.

Great Eastern Highway – ALine East Alliance (Wheatbelt North Region) In January 2006, works commenced on a $42 million project to upgrade 65 kilometres of Great Eastern Highway between Hines Hill and Walgoolan. The ALine East Alliance, which includes representatives from Main Roads, Brierty Contractors, BG&E and WML Consultants, are delivering the project.

Works include widening, reconstruction and realignments as well as upgrading the highway through Kellerberrin townsite. This will result in greater safety and reduced travel times, as well as improved amenity for road users through a vegetation corridor being created along the section.

Works have been completed on a 6 kilometre section east of Hines Hill and construction is underway on a 4 kilometre section west of Merredin. The full 65 kilometre upgrading is due for completion by June 2007.

Leach Highway/Orrong Road Intersection (Metro Region) In December 2005, the contract commenced for the design and construction of a diamond interchange with Leach Highway bridged over Orrong Road for $21.1 million. Earthworks are now well advanced on site with foundations for the bridge beginning in May 2006. The works overall are due for completion by December 2006 and will result in improved traffic flows reducing traffic delays in peak periods. This intersection has seen a significant increase in volumes since the opening of Graham Farmer Freeway and extensions to Roe Highway.

Great Northern Highway (Various Regions) Great Northern Highway forms part of the Perth to Darwin National Highway and is the main link from the Perth metropolitan area to the northern regions of Western Australia linking the State with the Northern Territory. This link also serves as the classified Heavy Haulage Route for the north of the State.

A series of widening and reconstruction works being undertaken to ensure the safe and efficient operation of the national highway in years to come include: • Construction of a 5 kilometre section commenced in January 2004 involving the upgrading of the highway between Rutland Road and the Swan/Chittering Shire boundary and was completed in April 2005. Final sealing works will be completed in the summer of 2006-07. The project value is $6.2 million. • A contract for a 3 kilometre section between Stock Road and Bullsbrook Road has also been completed. Landscaping works will commence in July 2006 and final sealing works will be completed in early 2007. • Construction commenced in May 2006 on the $5 million project from Apple Street to

Stock Road. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 47

• Project development work is progressing on the Goldfields Highway Jubilee Section sections between West Swan Road and Apple (Goldfields Esperance Region) Street, and Apple Street and Warbrook Road prior Completed in October 2005, the scope of work to going to tender. included widening of the seal from 7.4 metres to • A 4 kilometre section of widening, reconstruction 9 metres within the busy Kalgoorlie to Kambalda section and realignment works between Wells Glover and of the Goldfields Highway. The works provide a safer Spillman Road intersections was completed in June driving environment for road users who predominantly 2006 at a cost of $2.6 million. comprise mine employees travelling to and from sites • Construction commenced on a 1.1 kilometre south of Kalgoorlie. The project cost $400 000. section south of Bindoon at the Tee Tree and Spice Roads intersections on Great Northern Highway in York – Merredin (Wheatbelt South Region) June 2006. This road extends from York to Merredin. It generally carries a high percentage of heavy vehicles and is a South Western Highway/Link Road Intersection route for large mining equipment. It is constrained by a (Great Southern Region) narrow road reserve with narrow seal widths over the Significant intersection improvements were completed target sections. Seven kilometres of the York Merredin in June 2006 at South Western Highway/Link Road Road west of the town of Bruce Rock has been Junction at a cost of $100 000. The scope of work upgraded from the existing 5.2 metre and 5.6 metre included widening fishtails to accommodate road seal to an 8 metre seal width. The extent of the total trains with associated kerbing, drainage and pavement project lies between Yarding North Road junction and markings. Improvements at this location have provided the Corrigin Bruce Rock Road/Buller Road intersection. a greater level of safety for traffic entering and exiting Road upgrade works were also undertaken this junction. 40 kilometres west of the Bruce Rock townsite reconstructing and improving the Kwolyin Curves. North West Coastal Highway/HMAS Sydney The works extended for 5 kilometres adjacent to the old Memorial Drive Junction (Gascoyne Region) Kwolyin townsite and have substantially improved road Construction of a left turn slip lane at the intersection safety on a section that has had a history of crashes. of North West Coastal Highway and HMAS Sydney Total cost of the works undertaken cost $1.7 million. Memorial Drive commenced in June 2006 with The works were completed in June 2006. completion expected in early July 2006. This construction, costing $183 000, will improve efficiency Bridge Works (Wheatbelt North Region) of traffic movements at this intersection. Widening and strengthening of the bridge over Brockman River, south of Bindoon, was completed in Coolgardie – Esperance Highway Emu Rocks November 2005 as part of the major upgrading of (Goldfields Esperance Region) Great Northern Highway between Muchea and Wubin The reconstruction and widening of 3.4 kilometres at a cost of $670 000. of road at a cost of $1.1 million was completed in June 2006. The section, which is part of the AusLink Work is underway on replacing and widening the National Network, is located south of the Emu concrete deck on the bridge at Bradley’s crossing Rocks intersection. Combined with the road safety on the Midlands Road north of Moora. Works are improvement treatment at the intersection, these works scheduled for completion in July 2006 and will cost

provide an improved road for all traffic. $470 000. « PREVIOUS CONTENTS NEXT « 48 Main Roads Western Australia Annual Report 2006

Wheatbelt North Region also managed a number ° °Ê*i>ÊÕÀÊ/À>ÛiÊ/iÃ\Ê `>`Ê>`Ê>>Õ`> of bridge works projects on behalf of various Local Governments within the region, including: xä • Widening, strengthening and guardrail upgrade

of the bridge over Brockman River on Chittering {ä Valley Road and the bridge over Toodyay Brook on Wattering Road was completed in March 2006 at a Îä cost of $440 000. • Replacement of Jurendine Bridge on the Southern Brook Road was completed in March 2006 at a cost Óä ÕÌiÃÊvÊ/À>Ûi of $80 000.

• Replacement of the bridge over Avon River on £ä Mackies Siding Road was completed in April 2006 at a cost of $410 000. ä ÓääÎä{ Óää{äx ÓääxäÈ Tonkin Highway/Welshpool Road Intersection >V>Ê9i>À (Metro Region) `>` >>Õ`> The contract involved altering this intersection by

extending the right hand slip lane in Welshpool Road, ° °Ê*i>ÊÕÀÊ/À>ÛiÊ/iÃ\ÊÀ>`>i]Ê widening the highway and improving pedestrian facilities >`ÛÃÊ,V} >®]Ê"Ài>Ê>`ÊÀi>Ìi and traffic flow. The modifications were completed in Èä November 2005 at a final cost of $600 000. xä Road Use Efficiency Improvements Performance Indicators {ä Peak Hour Times Îä The data indicates a general trend of increasing travel times over the five year period in the Perth metro road ÕÌiÃÊvÊ/À>Ûi Óä network consistent with growth in population and urban development. Travel time on the Baldivis route was £ä surveyed for the first time in 2005-06.

ä ° °Ê*i>ÊÕÀÊ/À>ÛiÊ/iÃ\Ê7>iÀÊ>`Ê`>Õ« ÓääÎä{ Óää{äx ÓääxäÈ >V>Ê9i>À {ä À>`>i ,V} > >`ÛÃ "Ài> Ài>Ìi Îx

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7>iÀ `>Õ« « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 49

Road Infrastructure for State Development

The objective of this program is to expand the road network in accordance with State and Federal transport and land use strategies that will facilitate the economic and regional development of the State.

Over 2005-06, $144 million was expended on Road Infrastructure for State Development which made up 19% of the total road program. The following are some of the works undertaken during the year.

Albany Ring Road – Stage 1 (Great Southern Region) The construction of stage 1 of the Albany Ring Road will link the major arterial main roads of Albany Highway and Albany – Lake Grace (Chester Pass) Road and also provide improved access to the Mirambeena Industrial Estate for plantation logs and other related products. This will avoid the necessity for heavy vehicles including road trains to negotiate city traffic with improved safety and enhanced road user benefits.

The contract for the construction of the first stage of the Ring Road was awarded for $10.4 million. The construction began in March 2006 and is due to finish around April 2007. When complete the ring road will provide a viable heavy haulage route for the transport of products to and from the Port of Albany.

Great Eastern Highway (Wheatbelt North Region) Great Eastern Highway forms part of the route for long-distance traffic travelling east from Great Eastern Highway Perth and also serves as an arterial route for the eastern corridor of the metropolitan area. forms part of the route for long-distance traffic

travelling east from Perth « PREVIOUS CONTENTS NEXT « 50 Main Roads Western Australia Annual Report 2006

This $50 million project will provide improved road Armadale Road Dual Carriageway (Metro Region) safety for residents and tourists and a more efficient As part of the State Government’s commitment transportation route to the Eastern States and the to improving safety on Armadale Road, work was Goldfields Esperance Region. completed in December 2005 to construct a dual The project involves upgrading 13.2 kilometres of Great carriageway between Lake Road and the Forrestdale Eastern Highway from Sawyers Valley to one kilometre town centre. This $5.5 million project has provided east of the Lakes turn off intersection (including the many benefits for both the local community and regional intersection) to dual carriageway standard. Construction traffic including: works commenced in April 2004 and was largely • Enhancement of the safety and efficiency of completed in June 2006. Landscaping works on the Armadale Road project began in May 2006 and are expected to be • Catering for future traffic volumes that are predicted complete later in 2006. to increase as further regional development occurs • Improving the access to and from the future Tonkin Highway Mills Road West – Tonkin Highway extension, currently being Thomas Road (Metro Region) constructed to Armadale Road and onwards to The remaining seven kilometres of the project, extending Thomas Road in Byford. Tonkin Highway from Armadale Road to Thomas Road Road users can now travel on a dual carriageway from in Byford, was officially opened to traffic by the Minister South Western Highway in Armadale to Anstey Road for Planning and Infrastructure in December 2005, in Forrestdale. 12 months ahead of schedule.

The 18 kilometre Tonkin Highway extension has Mitchell Freeway Hodges Drive to Burns Beach provided a bypass to the west of the urban areas that Road (Metro Region) will remove much of the regional traffic and improve The Project includes: residential amenity and road safety by concentrating • A four kilometre extension of Mitchell Freeway from heavy vehicles on a dedicated freight route. Extending Hodges Drive to Burns Beach Road Tonkin Highway has also facilitated the development • Interchanges at Hodges Drive, Shenton Avenue of the Champion Lakes rowing course and will open and Burns Beach Road up the Forrestdale Business Park and more than a • A road bridge over the Freeway and Northern thousand hectares of residential land on the southern Suburbs Transit System at Moore Drive boundary of Armadale. This will help to create jobs • A pedestrian overpass (footbridge) at Portmarnock in local businesses and industry and provide a much Circuit in Connolly. needed boost to the south-east corridor. The Freeway extension contract is anticipated to be Champion Lakes, an international rowing course awarded in October 2006 with construction expected to almost 2.4 kilometres long and 150 metres wide commence late in 2006 and be completed by the end was constructed adjacent to the Tonkin Highway of 2008. extension in the Champion Lake area. Approximately 1.6 million cubic metres of material excavated from The $171.5 million Mitchell Freeway Extension will bring the rowing course has been used for fill on the Tonkin social and transport benefits to the rapidly growing Highway extension project. The construction of the communities north of Perth. rowing course was implemented under a cooperative arrangement between Armadale Redevelopment Authority, Main Roads, the Western Australian Planning

Commission and the City of Armadale. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 51

The extension will provide much needed infrastructure Geraldton Southern Transport Corridor Stage 2 to support the existing residential and commercial (Mid West Region) needs of the north-west corridor and help Joondalup Project development is underway for this project reach its full potential. It will stimulate local industry and comprising 8.5 kilometres of single carriageway from the further development by providing direct access to the Stage 1 works at North West Coastal Highway to the Joondalup city centre as well as the northern suburbs of Geraldton Mt Magnet Road adjacent to the Geraldton Connolly, Currambine, Iluka, Carramar and Kinross. Airport. It will include intersections with the Geraldton– The extension will provide relief for northern suburb Walkaway Road and Deepdale Road and is scheduled commuters and the light commercial traffic travelling to for completion in 2009. these areas by reducing congestion and travel times. Roe Highway Stage 7 (Metro Region) A Principal Shared Path will be constructed alongside the Roe Highway Stage 7 completes a vital link in Perth’s Freeway to improve pedestrian and cycle connectivity metropolitan road network providing a seamless route to the Joondalup City Centre, local amenities and the from Midland to the Kwinana Freeway and delivering Currambine Rail Station. substantial advantages for the community and Geraldton Southern Transport Corridor Stage 1 environment including improved road safety, calming (Mid West Region) traffic and safety on neighbourhood streets, enhancing Construction of the $90.6 million Stage 1 of the project the built environment, extensive Principal Shared Paths, commenced in March 2004 and was completed in preserving rare urban bushland, reducing transport October 2005. It involved the design and construction of: costs, reducing traffic congestion and assisting emergency services. • 13 kilometres of single rail alignment from Narngulu Industrial Area to the Geraldton Port • 4.9 kilometres of road works from the Geraldton Port to North West Coastal Highway • Five road bridges over the railway and road, one rail tunnel and the removal of an existing road bridge • Associated interchanges and connections to the local road system • Beach reclamation works for the Town Beach Foreshore Redevelopment and Batavia Coast Marina.

The Geraldton Southern Transport Corridor, a road and rail project managed by Main Roads, provides improved freight access to the Port of Geraldton whilst also providing benefits to the City of Geraldton enabling future regional development, growth and revitalisation of associated business, tourism, economic and employment opportunities in the region. The new rail was commissioned on 10 September 2005, enabling removal of the old rail line along the foreshore soon after.

Roe Highway Stage 7 completes a vital link in Perth’s

metropolitan road network « PREVIOUS CONTENTS NEXT « 52 Main Roads Western Australia Annual Report 2006

The world-class Roe 7 Alliance set out to challenge Consultation and collaboration were hallmarks of the conventional thinking and employed communications project’s success and relationships were maintained best practice and exhaustive consultation to identify with a wide variety of Government, industry and and mitigate stakeholder concerns, fast track regulatory community groups with an interest in the financial, approval, and ensure stakeholder understanding and technical, political, social and environmental satisfaction over the life of the project. ramifications of the development.

The innovative Alliance philosophy, with its emphasis Lancelin – Cervantes (Wheatbelt North Region) on collaboration, teamwork and best-for-project Project development is in progress for the 65 kilometre results, was instrumental in delivering the $75 million Lancelin to Cervantes section of the Indian Ocean development, on time and within budget, in March 2006. Drive link from Perth to Dongara. This project involves It brought together the engineering and construction construction on a greenfield site and includes a capabilities of Main Roads, Clough Limited and Maunsell realignment of Mimegarra Road (unsealed) and Australia Pty Ltd into a single integrated team. connections to Wedge Island, Grey and Ocean The Alliance was complemented on its ability to Farm Estate. achieve an effective balance between the conservative The detailed road design was completed by internal engineering and technical standards and demands for a resources from the Road and Traffic Engineering cost effective and “human friendly” outcome that would Branch. Because the route involved unexploded be pleasing to all parties. The turnkey development ordnance within Defence Land, the survey was comprised 4.5 kilometres of dual carriage highway, to undertaken via a remote sensed method of ground freeway standards, three major highway interchanges, survey that had never before been used in Australia three traffic bridges, a Principal Shared Path, flora for this purpose. Subsequent field survey verified the and fauna preservation, fauna facilities linking the accuracy of the approach. The aesthetic road design road reserve with adjacent nature reserves, extensive solution included a major signage scheme for the new landscaping, public artwork and associated utilities. route, streetlighting, and a lookout so that travellers can Primarily driven by Jandakot Airport and the community, enjoy the vista provided by the alignment. a new rail bridge on Karel Avenue was added to the Once complete, Indian Ocean Drive will bring social Roe Highway Stage 7 Project scope of works, providing and transport benefits to the local communities along a more direct route from Karel Avenue to both Jandakot the way and foster economic opportunities for the Airport and Berrigan Drive. This $5.8 million extension Central Coast region. It will support the residential and was two-thirds funded by Jandakot Airport Holdings commercial needs of the region, in particular the needs and demonstrated an excellent example of successful of the fishing industry and help to meet the forecast collaboration between the public and private sectors. population growth and development in the area. Work on this section commenced in October 2005 Indian Ocean Drive will reduce the distance and travel and the new rail bridge was opened on 1 June 2006. time for local and light commercial traffic travelling Completion of the final tie in works is due in early July between the coastal communities. This will improve 2006. This extension provides improved safety by access to medical and educational facilities, encourage removing an existing railway level crossing and replacing better use of regional amenities, and stimulate local it with a safer grade-separated (bridged) crossing. industry by providing direct access between centres The extension also provides improved traffic flows by with different commercial and administrative functions. replacing the existing T-junction at the Berrigan Drive/ Hope Road intersection with a roundabout. The project is to be delivered in two stages with first stage from Lancelin to Ocean Farm Estate to commence in 2007 and the balance to be constructed

over the next four years. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 53

New Perth Bunbury Highway Project Kwinana Goldfields Highway – Wiluna to Magellan Freeway Extension/Peel Deviation (Metro Region) (Goldfields Esperance Region) The New Perth Bunbury Highway Project will complete a The scope of these works involves reconstructing to high standard inter-regional road link between Perth and seal stage, 15 kilometres of unsealed road between the South West. It will bypass the heavily populated areas Wiluna and the Magellan Lead Mine 30 kilometres to in Mandurah and the Dawesville Peninsula and avoid the the west of the town site. A contract worth $6.6 million inland communities on the South Western Highway. was awarded in late April and works commenced in early June 2006 and are expected to be completed in The 70 kilometres of new road involves the extension of October 2006. The sealed sections of road will provide Kwinana Freeway at Safety Bay Road to Pinjarra Road a more secure access for mine site employees who and the construction of a dual carriageway around the fly in and out of Wiluna. The works will also provide eastern side of the Peel Inlet and Harvey Estuary to join a sealed passing opportunity and a safer road for all the existing dual carriageway on the Old Coast Road travellers between Wiluna and Meekatharra. near Lake Clifton.

The New Perth Bunbury Highway will significantly Road Infrastructure for State improve transport connectivity and travel times between Development Performance Indicators the metropolitan area and the growing Peel and South Return on Construction Expenditure West regions. It will remove much of the regional traffic, Return on Construction Expenditure is based on Benefit including freight vehicles, from heavily populated areas Cost Ratio (BCR) estimates of a data set of projects in Mandurah, along the Dawesville Peninsula and undertaken each year by Main Roads. It indicates through Pinjarra, significantly improving road safety and the extent to which road and bridge construction social amenity. expenditure will deliver future economic benefits to the The new highway will also promote further economic community. development and preserve the region’s attractiveness The changes in the Return on Construction Expenditure as a tourist destination by maintaining safe and easy effectiveness indicator from 2004-05 to 2005-06 can access for the thousands of tourists who travel south be explained by the completion of key projects such each year. The State and the Federal Government have as Tonkin Highway and the commencement of new committed $330 million and $170 million respectively projects such as the New Perth-Bunbury Highway. to the project which will be delivered using an Alliance contracting strategy. Planning and development ,iÌÕÀÊÊ ÃÌÀÕVÌÊ Ý«i`ÌÕÀi activities are well underway and construction is Õ>Ê,>`Ê Ý«>ÃÊ*À}À>Ê ,Ã scheduled to commence in late 2006. xä

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>V>Ê9i>À « PREVIOUS CONTENTS NEXT « 54 Main Roads Western Australia Annual Report 2006

Road Network Maintenance

The objective of this program is to maintain the existing road and bridge network by maximising asset life and minimising whole of life costs.

Over 2005-06, almost $273 million was expended on Road Network Maintenance which made up 36% of the total road program. The following are some of the works undertaken during the year.

Term Network Contracts Eight regionally based 10-year Term Network Contracts (TNC) were established to provide road maintenance and rehabilitation services on the State road system and for regulatory signs and road lines on local roads. The contracts provide a range of maintenance services to help ensure that road users are provided with a safe and efficient road system and that the value of the road asset is preserved. The contracts have been in place for up to seven years.

Main Roads and TNC contractors have to work closely to maximise the opportunities to coordinate and integrate contractors’ maintenance work with improvements initiated by Main Roads. This provides benefits of improved assets, better resource utilisation for both parties and better value for money for Main Roads.

Traffic Control Infrastructure Contract The Traffic Control Infrastructure Contract (TCIC) is a 10-year statewide contract that provides maintenance and improvement services for traffic control infrastructure and road lighting on highways and main roads.

The contract has been in place for over seven years and measures operational performance targets for reliability of traffic signals and response times against performance targets. Approximately $3 million of traffic control infrastructure improvements, including installation of new traffic signals or modification of existing signals have been undertaken during 2005-06.

Eyre Highway – Caiguna East and Balladonia West Sections (Goldfields Esperance Region) The Federal Government has committed $45 million for widening and reconstruction of 73 kilometres of Eyre Highway for Balladonia West and Caiguna East sections. The contract is scheduled for completion in February 2007. An additional allocation of $75 million will be used to design and construct the Heartbreak Ridge and $3 million of traffic control infrastructure Balladonia East sections totalling improvements have been undertaken during

2005-06 approximately 60 kilometres. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 55

Pre-construction activities have commenced. The highway upgrading will improve road safety, enhance transport efficiency and reduce maintenance costs.

Reconstruction of Salt Pond Causeways – Onslow (Gascoyne Region) Onslow Road is the only sealed road servicing the Onslow townsite and no reliable or suitable alternative road access is available. Onslow Road contains four low level causeways that cross a salt pond development.

The salt mining operations have resulted in damage to the road pavement at these locations with the ingress of moisture and salt now requiring the reconstruction and improvement of the causeways. In addition, the Onslow Road causeway sections have suffered flood damage Flood damage from cyclones in 2005 and 2006 due to inundation from cyclones, unseasonal winter rainfall and wave action. Works to Main Roads has a program for inspecting all timber reconstruct and raise the causeways commenced in bridges on public roads in the State on a five-yearly June 2006 with completion expected in late July 2006 cycle and the inspection of concrete and steel bridges at a total project cost of $800 000. on a seven year cycle. The levels of service considered Tropical Cyclones Clare, Emma and Glenda in the maintenance program broadly fall into the – Flood Damage (Gascoyne Region) categories of aesthetics, durability, strength (timber bridges only) and safety. As part of the 2005-06 Cyclone Season and in particular from January to March 2006, seven tropical During 2005-06 a total of $16.8 million was spent on cyclones formed off the north-west coast with three the maintenance of the bridge network. cyclones (Clare, Emma and Glenda) directly impacting on the southern Pilbara and Gascoyne Regions. Road Network Maintenance Performance Indicators As a result of significant rainfall and flooding in river systems, the southern Pilbara and Gascoyne Regions Smooth Travel Exposure incurred substantial damage to the State and Local Smooth Travel Exposure is a key indicator of the Road networks. effectiveness of road maintenance expenditure. It represents the proportion of travel undertaken each Whilst opening-up works have been completed, year on all roads with surface roughness less than reinstatement and mitigation works are currently 4.2 IRI (International Roughness Index), the national underway on State and Local Roads. These works are standard that provides acceptable travel conditions for not expected to be completed until December 2006. passenger car users. Bridge Maintenance Of the total travel on Western Australian sealed national The value of bridges on the State road network is and state roads, 98.6% is undertaken on roads that $1.5 billion and represents an important component of meet the roughness standard. Previous years’ results the total road asset. Bridge maintenance activities are from interstate show that Western Australia performs undertaken with the aim of maintaining the bridge asset better, for this indicator, than other states. at the current level of service whilst maximising whole of

life cycle costs. « PREVIOUS CONTENTS NEXT « 56 Main Roads Western Australia Annual Report 2006

-Ì Ê/À>ÛiÊ Ý«ÃÕÀi the ride quality of Metropolitan Freeways. It can be ¯ÊvÊ6i ViÊiÌÀiÃÊ/À>Ûii`Ê6/®ÊÊ,>`ÃÊ iiÌ}Ê,Õ} iÃÃÊ-Ì>`>À`Ã reasonably assumed that this decreased satisfaction is £ää related to the road works currently being undertaken along Kwinana Freeway. There was also a significant

nä decrease in satisfaction in the ride quality of Rural Highways. It should be noted, however, that this significant decrease follows a significant increase in Èä satisfaction in Rural Highways that occurred during 2004-2005. This suggests that the 2004-2005 result for {ä Rural Highways was an anomaly.

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Physical measurements of the road network are further ¯ÊvÊ->ÌÃvi`Ê,iÃ«`iÌÃ supported by results from the Annual Community Perceptions Survey. Respondents were asked to Óä rate the condition, or ride quality, of the road network

under Main Roads’ control. The Ride Quality Indicator ä iÌÀÊÀiiÜ>ÞÃ iÌÀÊ} Ü>ÞÃ ,ÕÀ>Ê} Ü>ÞÃ summarises the percentage of respondents that were ,>`Ê/Þ«i satisfied with the ride quality of the network. Óää£äÓ ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ During 2005-06 there was a significant decrease in >V>Ê9i>À the percentage of respondents that were satisfied with

Traffic Control Infrastructure Contract Most asset performance measures are close to operational ranges, except for availability which is temporarily below the performance target due to resurfacing works affecting the measurement from sub-surface measurement loops at the traffic signals.

Actual Performance Indicator Target Note A Availability the % of time each asset is operational • for traffic control signals 99.60% 97.56% • for road lighting 99.30% 98.77% Reliability the average number of failures per asset per month • for traffic control signals 0.25 0.37 • for road lighting 0.25 0.43 Response Time the average time (hours) taken from notification of fault to arrival on site 4.80 h 3.90 h Repair Time the average time (hours) taken to fix a fault from arrival on site 20.00 h 26.75 h

Note A: figures are the average for July 2005 to June 2006. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 57

Sustainability

04 « PREVIOUS CONTENTS NEXT « 58 Main Roads Western Australia Annual Report 2006

Sustainability The Western Australian State Sustainability Strategy recognises the role of sustainable transport in achieving a sustainable society.

The role of Main Roads in the delivery of sustainable transport is focused on the design, construction and management of the road component of transport.

Development of a Sustainability Policy Framework and a revised Sustainability Action Plan In May 2006, Main Roads initiated a project directed at establishing a formal policy framework for sustainability. This is aimed at providing both a corporate vision in regard to sustainability and a clearer basis for the setting of specific sustainability objectives. The policy objectives will then be applied in a major review of the Main Roads Sustainability Action Plan.

A working group with members drawn from across Main Roads will develop the policy framework and make recommendations regarding revised implementation actions. The Sustainability Project will operate under the direction of a steering committee consisting of Corporate Executive members. Implementation of a new Sustainability Action Plan is scheduled to commence in late 2006.

Main Roads Sustainability Action Plan In 2004, Main Roads developed an initial Sustainability Action Plan for the period 2005 to 2007. Significant progress has been achieved in a number of areas and these are briefly outlined below. Further details of actions and achievements in these areas are presented elsewhere in the report. • Customer Service Strategy. A commitment to excellence in customer service is reflected in the Main Roads Values. A formal Customer Service Strategy was adopted in 2004 and the rollout of actions has continued during 2005-06. • Environmental Management. Environmental Management at Main Roads continued to make substantial gains in 2005-06. This included the upgrade of third party certification to the 2004 version of the International Standard for Environmental Management Systems (AS/NZS ISO 14001:2004) and the commencement of new program initiatives such as regional revegetation plans. • Occupational Safety and Health. Work has continued on the establishment of a formal OSH management system, Third party certification of the Main Roads OSH system will be sought in 2006-07. • Community Engagement. A project was established in 2005-06 to establish the policy and structures to ensure effective community engagement across Main Roads. An interim policy and associated guidelines were established and pilot testing on a range

of projects commenced. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 59

• Light Vehicle Fleet. Opportunities to replace six- A notable achievement was to receive a vegetation cylinder vehicles with more fuel efficient four-cylinder clearing permit that will apply to road construction vehicles are being taken where possible. During projects throughout the State for the next five years. 2005-06, the number of six-cylinder vehicles This was seen as indicative of the Department of decreased by 18 compared with the number of four- Environment’s confidence in our rigorous environmental cylinder vehicles increasing by 30. assessment processes. Plans for next year include • Property Management. Actions effected include assessing the change in vegetation condition in pastoral an energy rating assessment of buildings using areas and commencing implementation of regional the Australian Building Greenhouse Rating and revegetation plans in agricultural areas. the maintenance of four star ratings for all recently constructed buildings. Work progressed on Noise water efficiency improvements of Main Roads An important part of major new roads and upgrades is buildings. Improvements include the installation of to incorporate various traffic noise treatments to mitigate a groundwater bore at the Don Aitken Centre to impacts on residential areas. Treatments occurred along eliminate the use of potable water in landscaping. Roe Highway Stage 7, Tonkin Highway (Armadale Road to Thomas Road) and roadwork associated with the The following provides an overview of some specific Perth to Mandurah railway project. initiatives relating to the three components of sustainability. Noise continues to be an issue along some older Environment parts of the road network and attention is turning to these areas. Further trials were completed on the Environmental Management System effectiveness and costs of noise insulation of homes as Main Roads’ environmental management system is an alternative to constructing noise walls. Next year the the foundation for environmental management across aim is to complete an assessment of the road network the organisation. The system is certified as meeting to identify areas subject to high levels of traffic noise the International Standard AS/NZS ISO14001:2004 and to prepare a plan of action. and governs all activities that have potential environmental effects.

Key achievements this year included an upgrade of the system to comply with the latest (2004) version of the standard and completion of new guidelines on water protection and heritage. Next year more specialist environmental staff will be deployed within operational groups to further strengthen implementation of the system.

Biodiversity Main Roads has a long history of contributing to biodiversity conservation through responsible management of its road verges, which can often contain very significant remnant vegetation. This year, assessment of the existing roadside vegetation condition was completed for 8 000 kilometres of roads in pastoral areas and 800 kilometres in urban areas of Perth.

An important part of major new roads and upgrades is to

incorporate various traffic noise treatments « PREVIOUS CONTENTS NEXT « 60 Main Roads Western Australia Annual Report 2006

National Case Earth Awards – Geraldton Southern Transport Corridor Stage 1 The Geraldton Southern Transport Corridor project won the Environmental Excellence category for projects worth more than $10 million at the National Case Earth Awards. And further, the project was then declared the overall national winner for Environmental Excellence.

The awards this year attracted a record number of 77 entries in Australia. The awards were announced in Sydney at a function attended by more than 700 people in the construction industry from across the nation.

This is outstanding recognition for everyone who has worked on the project since the late 1990s. The project was jointly submitted by Main Roads, Public Transport Authority and Thiess Pty Ltd. Water Quality Waste Paper Recycling Stormwater run-off from roads has the potential to Main Roads has in place a paper recycling program pollute adjoining lakes or rivers. Main Roads’ efforts for its metropolitan offices. The collection of paper are directed at avoiding problems through good design is through a whole of government contract for the of new roads and also through targeted action on collection, removal and purchase of waste paper for the the existing road network. This year the emphasis was purpose of recycling. Main Roads has recycled 5 215 on the rural road network, identifying where there is kilograms for the 2005-06 financial year, averaging 435 a risk of potential pollution. Next year installation of kilograms per month. suitable water treatment devices at high priority rural sites will commence. Energy Management In accordance with the Energy Smart Government Indigenous Heritage policy Main Roads is committed to achieve a 12% Consultation with Indigenous groups remains the reduction in non-transport related energy use by primary means for protecting heritage sites. This year 2006-07. The target for 2005-06 was a 10% reduction there were 36 formal meetings with local representatives in power consumption on the 2001-02 baseline figures. regarding road projects, as well as 20 ethnographic surveys. Main Roads will continue to maintain a high level of involvement with Indigenous stakeholders on heritage issues.

Energy Smart Government Baseline 2005-06 Reduction (%) Program Data 2001-02 Actuals Energy Consumption (MJ) 17 419 986 16 392 000 6 Energy Cost ($) 797 596 669 080 16 Greenhouse Gas Emissions 4 387 4 098 7 (tonnes of Carbon Dioxide) Performance Indicator

MJ/FTE 22 921 18 798

« « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 61

Whilst an overall reduction has been achieved, there Performance was an increase in energy consumption from 2004- The Community Perception of Environmental 05 with the completion and occupation of two new Performance Indicator represents how the community regional offices in Bunbury and Boulder. Consumption perceives Main Roads’ performance in environmental in both regions has doubled despite the new buildings sensitivity. This indicator is obtained through the being designed and built to be energy efficient as part Community Perceptions Survey and reflects the of Main Roads’ energy saving initiatives. A review is perception level of customers in both metropolitan in progress to determine the cause of the increase in and rural Western Australia. energy use. A significant increase has been experienced These results indicate a notable decline in community in the use of gas in the Don Aitken Centre. Action is perception of Main Roads’ overall environmental being taken to use the gas more efficiently by replacing sensitivity in 2006. Consideration needs to be given old equipment. as to how Main Roads can increase awareness of its environmental achievements and further explore broad Stakeholder Relations community views so that concerns can be addressed. • Main Roads continued its long relationship with the

Roadside Conservation Committee through active ÕÌÞÊ*iÀVi«ÌÃÊvÊ participation and sponsorship ÛÀiÌ>Ê*iÀvÀ>Vi • Meetings of the Environmental Advisory Group £ää continued to be held in 2005-06. This group was established in 2003 to provide a forum for external nä stakeholder discussion and input to Main Roads environmental management strategies at the policy level. The group comprises government agencies, Èä advisory groups and community organisations with

road-related environmental interests {ä

• Main Roads released its third Public Environment iÛiÊvÊ->ÌÃv>VÌÊ¯® Report. Copies are available from the Main Roads Óä website.

ä ÓääÓ ÓääÎ Óää{ Óääx ÓääÈ 9i>À

iÌÀ«Ì> ,ÕÀ> « PREVIOUS CONTENTS NEXT « 62 Main Roads Western Australia Annual Report 2006

Social – Community Engagement The policy will be evaluated through these Main Roads’ focus on building better relationships demonstration projects using the new Community and involving communities in decision making was Engagement Value Assurance Review standard enhanced with the commencement of the Community developed in partnership with the Department of Engagement Project in 2005. The project includes a Premier and Cabinet’s Office of Citizens and Civics new structure, incorporating a Community Engagement and the Department for Planning and Infrastructure. Steering Committee and Working Group to support Measures for improvement and opportunities will be and direct the policy development. Both groups have identified, along with the identification and management representatives from the Office of Citizens and Civics, of socio-organisational risks, and the realisation of while external stakeholders will be engaged through the additional public value before finalisation of the policy new Customer Advisory Council and the Planning and review in 2007. Infrastructure Portfolio’s Community and Stakeholder This new Community Engagement Value Assurance Engagement Forum. Review initiated by Main Roads represents The Community Engagement Framework developed internationally leading edge development in the field of consists of a Community Engagement Policy, Guidelines community engagement standards. and Value Assurance Review. The framework will provide guidance, coaching and support to Project Economic Considerations Managers and other staff involved in community While economic returns are an essential element of engagement on the type and extent of the consultation investment decisions, Main Roads strives to seek a required, primarily based on size, scale and risk profile balance between economic, environmental and social of the project or policy initiative, as well as the desire of considerations. In this way, Main Roads aims to ensure communities and stakeholders to be involved. that the road network is managed in a sustainable manner, while seeking to minimise the whole of life cost At the end of 2005, the Community Engagement of the management of the road network. Policy, Guidelines and Value Assurance Review were completed. In April 2006, Corporate Executive Main Roads annual road program attempts to match endorsement was received to test the policy with the highest priority projects with desired outcomes approved demonstration projects over the next taking into account social and environmental 12 months. These projects are: considerations as well as economic project evaluation • New Perth to Bunbury Highway methods including the calculation of Benefit Cost Ratios. The new program management approach better • Mitchell Freeway Extension enables project prioritisation to be undertaken against • Albany Ring Road Stages 2 and 3 the key community outcomes of network efficiency, • Brookton Highway Upgrades network safety, minimisation of the whole of life cost • Broome Bypass of managing a multi-billion dollar asset and economic and regional development. These outcomes are further broken down into the service Main Roads provides to the Western Australian community as outlined in the

Achievements section of this report. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 63

Building Better

Relationships 05 « PREVIOUS CONTENTS NEXT « 64 Main Roads Western Australia Annual Report 2006

Building Better Relationships Main Roads’ Customer Service Strategy Excellence Inroads 2004-2007, launched in August 2004, continues to guide the pathway to customer service excellence.

Excellence Inroads details the actions required to address the strategic focus areas of Community and Relationships identified in the 2K7 Strategic Plan. The new Road Network Operations Strategy Smarter Roads, Better Journeys 2006-2010 builds on the customer- centric direction set by Excellence Inroads and defines the organisation’s role as a customer service driven road network operator.

Community Involvement To complement its community engagement practices Main Roads has established a series of peak advisory groups comprising stakeholders, partners and the community. These groups provide guidance, assistance and input to Main Roads to assist in fair, equitable and appropriate services.

Heavy Vehicle Advisory Group This group brings together peak industry bodies, Local Government, unions and government agencies. The group provides a forum for discussion and consultation regarding management of heavy vehicle access to the road network with the aim of improving safety and efficiency.

State Road Funds to Local Government Advisory Committee This committee ensures that the funds available from State Government sources for Local Roads are allocated to the area of greatest need for the benefit of all road users. The Committee is the peak body of the Regional Road Group structure and has responsibility to oversee, monitor and recommend to the Minister for Planning and Infrastructure the distribution of State Road Funds to Local Roads.

Western Australian Road Construction and Maintenance Industry Advisory Group This group is comprised of representatives from Main Roads and the major construction and maintenance industry associations. The group exchanges information on developments in contracting and tendering for road construction and maintenance services including matters such as safety and provides comment and input into procurement policy development.

Main Roads’ Customer Service Strategy continues

to guide the pathway to customer service excellence « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 65

Main Roads – Western Australian Local Protocol telephony system enables a seamless transfer Government Association Liaison Committee between the two sites.

This Committee was formed 14 years ago to build The CCC provides the following services: on the close working relationship between Local • Responds to calls from the 400 emergency phones Government and Main Roads. The Committee’s role is on freeways and highways to develop policy relating to areas of common interest • Responds to road fault and hazard report on and to liaise on technical issues associated with 1800 800 009 and allocates response action management of the road network. to the relevant contractor, Local Government or Environmental Advisory Group Main Roads Branch/Region This group brings together representatives from various • Operates as the public contact point for all major environmental bodies, community organisations incidents on the freeways and highways providing and government agencies. The role of the group accurate, up-to-date information to customers is to provide advice, guidance and input into the • Accepts calls on the general enquiries number development of Main Roads environmental policies 138 138 and the head office administration number and practices. (08) 9323 4111 • Provides regional and metropolitan road conditions Disability Advisory Group on the information line 1800 013 314 This group is comprised of community-based • Resolves over 80% of calls at the first point of representatives with first hand experience in access and contact or connects calls requiring specialist advice mobility issues. The group provides advice and input into to the appropriate area on the first transfer the planning and development of accessible infrastructure. • Provides an after-hours service for the regions Further details on the activities of this group are included • Answers after-hours heavy vehicle permit enquiries under the heading of Universal Access. and general questions about heavy vehicle matters • Responds to emails from the Main Roads’ website Customer Service Advisory Council within 24 hours Main Roads is in the process of establishing a Customer • Access to interpreting and translating services to Service Advisory Council to ensure community assist in addressing customer needs. involvement and input, at a strategic level, into Main Roads’ organisational planning processes and The aim during 2006-07 is to conduct an independent strategic direction. The Council will consist of industry external review of the CCC to determine the extent it and community members representing Western has delivered on the original corporate objectives and Australia’s diverse road users. It will provide advice and develop a program of business improvements that build feedback on the development of strategy and policy in on the success to date. relation to Main Roads’ products and services, and levels CUSTOMER CONTACT of service. It is anticipated that the first meeting of the 2005-06 STATISTICS Council will be held early in the 2006-07 financial year. Visits to Don Aitken Centre, 20 787 Striving for Customer Service East Perth Excellence Total external answered calls 322 034 Customer Contact Centre General enquiries to CCC 18 635 The Customer Contact Centre (CCC), which Road Condition Reporting Service 20 040 commenced business-hours operation in May 2005, – 1800 013 314 became a full 24 hours, seven days a week service Hazard Report line – 1800 800 009 16 496 from 15 July 2005. If an emergency situation arises the CCC can be fully operational from the Traffic Operations Freeway and Highway Emergency 9 411 telephones

Centre in Northbridge within ten minutes. The Internet « PREVIOUS CONTENTS NEXT « 66 Main Roads Western Australia Annual Report 2006

Customer Service Development Program "Ê «>ÌÃÊÓääxäÈ

The Customer Service Awareness Workshops nä commenced in mid-2005 and were completed in May 2006. All branches and regions participated in Çä the program which had a 97% attendance rate. The Èä 36 one-day workshops were independently facilitated and encouraged employees to have a greater xä awareness of customer needs in day-to-day business. {ä

External and internal customers were invited to attend ÕÌ the workshops and provide face-to-face feedback Îä and suggestions on ways for individual branches and Óä regions to improve their customer service. £ä The customer feedback has been incorporated in a series of action plans that will ensure future services ä "Ì iÀ É/

are tailored to meet customer needs. An evaluation of i>ÛÞ ->viÌÞ 6i ViÃ -iÀÛViÃ ÕÃÌiÀ

the program is currently being conducted to maximise /À>vvVÊ>` >`Ê*ÀiVÌÃ >Ìi>Vi the benefits to Main Roads from the investment in ÃÌÀÕVÌÊ ÃÃÕi the program. In June 2006, a survey was undertaken of people Complaint Handling and Opportunity for who had complained to Main Roads to determine Improvement whether these customers were satisfied with the way The Opportunity for Improvement (OFI) database is the complaint was handled. The survey indicated 78% currently being used throughout the organisation of customers were happy with the way their complaint to record, action and track all different customer was resolved. feedback types including complaints, general feedback Recognition for Excellence in Customer Service and suggestions for improving services. Recording • On 2 December 2005, Main Roads was awarded all customer feedback in OFI enables employees the Customer Service Council’s Service Excellence to address and track customer concerns in a more Award for the Large Business Category. This efficient and accountable manner, sharing information prestigious award recognises innovations, significant statewide and identifying opportunities for improving achievements and progress that have been made services to customers. towards achieving Main Roads’ vision “to be Since July 2005, 786 customer responses were recognised for excellence in customer service and entered into the system, including 23 compliments world class road access”. and 204 complaints. The table below displays the • On 6 September 2005, Main Roads’ Pilbara and categories of complaints received. ‘Other’ includes road Gascoyne Regions received Fire and Emergency conditions, planning and asset activities, environment, Services Authority of Western Australia Australian bridge structures, cyclists and pedestrians. Of the Safer Communities Awards for 2005. complaints received during the financial year, 96% were • The submission from Pilbara Region, Regional Road promptly resolved. Condition Maps, won the Pre-Disaster Category for A review was conducted in 2006 to examine maps placed in roadhouses as a visual aid to help Main Roads’ complaints handling policies and customers better understand the road condition procedures against International and Australian reports provided by the three Regional Offices. It will Standards and State Government requirements. help prevent travellers becoming stuck in flooded The review identifies strengths and weaknesses and areas during and after storms. recommends specific improvements in the complaints • The submission from Gascoyne Region, Tropical

handling process for implementation in 2006-07. Cyclone Monty – North West Coastal Highway « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 67

Reinstatement Works, was Highly Commended in • Advice on placement of pedestrian push button the Post-Disaster Category. The award recognised locations on traffic poles the excellent work by Gascoyne and Pilbara Region • Advice on location of pedestrian hand rails on staff to re-open North West Coastal Highway after shared paths the passage of Cyclone Monty and then plan and • Advice on the location of Pedestrian Tactile Ground reconstruct new road and bridge structures prior to Surface Indicators on shared paths and pedestrian the next wet season. crossings • During 2005 the Customer Contact Centre was • Advice on pedestrian crossing facilities at numerous awarded the Greenfield Site category in the West intersections in the metropolitan area including the Australian Chapter of the National Australian Byford Redevelopment Project. Teleservices Awards. Main Roads continued to conduct Disability Awareness • On 16 December 2005, the annual Commissioner’s Training sessions for its staff both in the metropolitan Award for Outstanding Achievement was awarded and regional areas. to the Customer Contact Centre Project Team for researching and delivering a world-class contact Pedestrian Advisory Group centre within 12 months. During 2005-06, the Pedestrian Advisory Group has provided valuable advice to Main Roads to achieve Website Improvements superior facilities for pedestrians across the The process of continuously improving the Main Roads Main Roads network. website in 2006-07 is directed towards developing a new design, navigation and information architecture to The group is a source of advice on pedestrian issues, increase levels of access and online customer service. such as the provision of tactile ground surface indicators, The integration of wireless, new generation traveller and they provide practical feedback on issues such information services and intelligent transport technology as Main Roads’ education campaign for parallel walk is also a priority. These improvements are being managed crossings. With representatives from the community, by a new staff member, appointed in 2005, who also Blind Citizens WA Inc., and other Government agencies, maintains quality standards for website content. the group also provides information on community issues and concerns regarding the road network. Over Universal Access the coming year Main Roads will continue to seek advice Disability Services Plan and feedback from the group during development of projects with pedestrian facilities. The Main Roads Disability Action Plan 2004-07 ensures that the needs of people with disabilities are identified Lifecycle Bike Ride Event and met. Achievements include the recognition In 2006 Main Roads sponsored the inaugural of access issues in offices, assets, contracts, the Main Roads Life Cycle Great Western Australian Bike communication process and the provision of wheelchair Ride from Albany to Perth, via the South West Region. access in regional and metropolitan offices. This two week event was Western Australia’s first mass Access and Mobility participation cycling holiday, attracting over 2 600 cyclists and over 250 volunteers from Australia and overseas. During the year, the Disability Advisory Group met 10 times and had its 37th meeting in May 2006. Main Roads worked successfully with event organisers These meetings included numerous site visits which Bicycle Victoria and Western Australia’s Bicycle involved Local Government representatives as Transportation Alliance, to encourage local participation, Main Roads’ partners in managing the State’s road with Western Australians making up half the overall network. The highlights of the Disability Advisory Group participant numbers. Participants who registered before meetings and site visits were: 28 October 2005 received a free bike and many of these • Feedback and advice on the Main Roads Parallel can be seen on bike paths throughout Western Australia.

Walks Campaign « PREVIOUS CONTENTS NEXT « 68 Main Roads Western Australia Annual Report 2006

Based on the VicRoads model, a corporate team of nine people coordinated the various aspects of Main Roads’ involvement in this event such as: • Traffic management • Public relations and media liaison • Event marquee and customer service • Liaison with sponsors EventsCorp, Department for Planning and Infrastructure and Heart Foundation, as well as the Western Australian Police • Delivery of bicycle awareness sessions to primary schools • Presentations to councils on cycling infrastructure and traffic management for events. Main Roads sponsored the inaugural Main Roads Life Cycle This event was highly successful, receiving extensive Great Western Australian Bike Ride from Albany to Perth positive regional and metropolitan media coverage. During the event, Main Roads conducted a ‘Share the Road’ campaign, aimed at encouraging considerate This year, 90% of respondents indicated that they behaviour towards other road users. were satisfied with Main Roads’ overall performance, which was a slight drop from the 92% satisfaction Cycling Seminars rating received in 2005. 90% of respondents were also Two one-day cycling seminars were conducted, covering satisfied with the provision of roads in their area, which the planning, design construction and maintenance was a slight increase from last year’s results. The 2006 of bicycle networks and facilities throughout results with respect to improving user access to roads Western Australia. More than 100 practitioners from (85% satisfied) and Main Roads’ efforts in providing stakeholder groups and consultancies attended, as effective communication (75% satisfied) were statistically well as representatives from cycling advocacy groups. similar to 2005. Presenters from the Department for Planning and Proportion of Infrastructure’s Cycling Unit and Main Roads offered a respondents rating variety of information including practical experience in Main Roads as applying the principles of bicycle network planning and Issue performing ‘OK or better’ information on international and national best practice in relation to cycling facilities and networks. 2005 % 2006 % Overall performance 92 90 Community Perception Survey Each year for the past 12 years an independent market Provision of roads in your 88 90 area research company has been commissioned to conduct a Community Perceptions Survey. The purpose of this Working to improve user 86 85 access to roads survey is to gauge the views of Western Australian road users on the State road network, and rate Main Roads’ Providing effective 77 75 performance in managing it. The results are used by communication Main Roads to develop and implement strategies and initiatives to target those areas of greatest need, as

rated by customers. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 69

Strengthening OSH

06 « PREVIOUS CONTENTS NEXT « 70 Main Roads Western Australia Annual Report 2006

Strengthening OSH Main Roads has set itself a number of best practice targets for 2005- 06 in the areas of safety management and has significantly progressed towards achieving AS/NZS 4801:2001 and Worksafe Silver status in 2006-07.

Main Roads considers the safety, health and wellbeing of employees, contractors and the community as vital for the sustainability of business delivery. In 2005-06, Main Roads has continued to implement its 2004-07 Occupational Safety and Health (OSH) Strategy. The key areas focused on are: • Organisational Learning in OSH • Leadership in OSH • Recognition as an Industry Leader in OSH • Building Relationships that Support a Safety and Health Culture • Enhancing Capabilities in OSH.

Best Practice Reporting Among last year’s aims was the development of a more user-friendly hazard and incident reporting system. 2005-06 has seen the benefits of this in an increased number of hazards being identified and controlled throughout the organisation. Centralising the reporting structure has enabled corporate hazards to be identified, separated from local hazards and, therefore, to communicate appropriate controls across the organisation before these hazards become incidents. The rollout of the new dedicated OSH intranet site in 2006-07 will further enhance this communication of organisational learning.

Building on the findings of the OSH culture survey conducted in early 2005, this year has seen the consolidation of an overarching corporate safety system. Corporate OSH will now develop a corporate document which is able to be adapted by the various work areas to better suit their operational requirements whilst still meeting legislative obligations.

Leadership Leadership in OSH is about ensuring that OSH roles, accountabilities and responsibilities within the structure of Main Roads are identified, understood and accepted by all. In 2005-06, OSH has been included in the corporate business planning process, thereby embedding safety considerations into all directorate business plans. Further to this, individual development plans for all employees have been improved to include items specific to OSH, providing a starting point for both managers and employees to understand their safety and health responsibilities.

There has also been an increased awareness by senior management of their responsibility to drive OSH initiatives, demonstrated by an increased participation in safety committees, incident and hazard investigation, and, less formally, participation in initiatives such as the

Health and Lifestyle Program, flu vaccinations and driver training. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 71

Recognition Capabilities An overarching goal of the 2005-06 OSH objectives As a result of data showing a significant number of is to develop a safety management system that vehicle incidents, 2005-06 saw the launch of the meets the requirements of Australian Standard 4801 Main Roads Defensive Driver training course. (Safety Management Systems) and the WorkSafe Plan The opportunity to take part in this course was made Assessment program. Having systems and processes available to all employees, with both the standard in place which meet these requirements will help course, and specialist four wheel drive course being Main Roads to achieve: adapted to suit Main Roads requirements. Further • Better OSH consultation for all employees changes have been made to the course to tailor it to the • A healthier and safer work environment operational requirements of specific regions. As a result • Improved safety culture within the organisation of this training many Main Roads employees now have a greater awareness and understanding of hazards that • Better safety leadership face them everyday on the roads and are better • User friendly hazard and incident reporting process equipped to deal with them. • Improved statistical information • Continuous improvement in safety management. As mentioned previously, all individual development plans now include a specific OSH component designed In 2006-07, Main Roads is looking at ways to further to assist managers and employees to identify and increase the recognition of Occupational Safety and address any OSH responsibilities. OSH accountability Health representatives, who volunteer to undertake is now included as a part of some Job Role Statements myriad functions within their work areas, such as hazard and the corporate induction process is currently being identification, incident investigation and workplace reviewed to ensure that new employees are aware of inspections in addition to their normal duties. their responsibilities. Main Roads has also conducted a review of its Injury Management System, which is Building Relationships now considered to be best practice by RiskCover. The Main Roads is committed to developing and maintaining reviewed Injury Management system places greater a culture that encourages consultation, participation emphasis on line managers being directly involved in and effective communication. The new dedicated their employees return to work programs. OSH website will prove a vital tool in meeting this objective, providing a one-stop shop for internal safety Lost Time Injury Frequency Rates (LTIFR) information and advice. In 2005-06, members from A Lost Time Injury (LTI) is defined as an injury OSH branch began to attend regional and directorate which results in one or more entire shifts being lost. safety committee meetings to support communication In 2005-06, Main Roads has recorded an OSH and consultation on corporate OSH issues. This put a performance level of 7 LTIs per million hours worked face to the Branch and facilitated the establishment of (LTIFR) while contractors have again reported a effective working relationships. welcome reduction in the overall LTIFR from 3.3 to Last year also saw the release of the OSH 2.7 lost time injuries per million hours worked. Communication Strategy which identified the many The Roe 7 Alliance was recognised for its outstanding ways in which OSH information is communicated achievements in safety and health management. throughout the organisation. The whole organisation In 2006, it received a Worksafe Gold Certificate for its was given the opportunity to comment on the safety record for this project. consultation process and many employees took up the opportunity to provide valuable feedback. In 2006-07, Main Roads is looking to put less emphasis on lag indicators such as LTIs, and emphasising the Main Roads also continues to be a major sponsor of proactive nature of addressing hazards before they the Industrial Foundation for Accident Prevention (IFAP) become injuries. safety calendar, which is distributed to Main Roads employees to reinforce the value of safety both within

the workplace and at home.

« « « PREVIOUS CONTENTS NEXT « 72 Main Roads Western Australia Annual Report 2006

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Workers’ Compensation Óx During 2005-06, Main Roads’ employees sustained 29 work related injuries with 26 claims lodged and Óä 19 claims finalised. These injuries include 13 LTIs, for which 10 claims were lodged. The introduction of a best £x practice injury management system has resulted in an immediate positive impact on the average duration rate £ä

reducing to 6.6 (work days/LTI). Main Roads’ estimated ÕLiÀÊvÊVÌÛiÊ >Ã Cost of Claims Incurred is $0.33 per $100 of payroll x with a contribution (premium) rate of $0.35 per $100 of payroll. ä äää£ ä£äÓ äÓäÎ äÎä{ ä{äx äxäÈ Main Roads has experienced an increase in the *iÀ`Ê `}ÊÎäÊÕi overall number of LTIs during this period and therefore an increase in the incident rate to 1.38 (LTIs/100 employees) has resulted. Silver WorkSafe Award During 2005-06, the Major Projects Directorate Despite the slight increase, Main Roads’ injury record achieved a WorkSafe Plan Silver Certificate. continues to compare well with the three year average This acknowledges that substantial progress has for Work Related Lost Time Injuries/Diseases in Western been made in the management commitment and Australia (as reported by WorkSafe). operational practices for Occupational Safety and Health of the Major Projects Directorate.

Improvements to the Directorates Safety Management System have now been made based on the results of the previous WorkSafe Plan assessment with the aim of

achieving a Gold Certificate in 2006-07. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 73

Building and Expanding

Our Capability 07 « PREVIOUS CONTENTS NEXT « 74 Main Roads Western Australia Annual Report 2006

Building and Expanding Our Capability Main Roads has developed and implemented a number of innovative, leading edge initiatives aimed at attracting, creating and maintaining a workforce that can take it into the future.

These key initiatives are now achieving successful results that give confidence that Main Roads can meet all of governments expectations and programs planned for the future.

“Building and Expanding Capability” was identified as one of the key areas of strategic focus in the ‘2K7’ Strategic Plan.

Building capability is a key area of focus as Main Roads addresses operational and business requirements, industry changes and the implications of an ageing workforce. Attracting and retaining the right people was identified as a major challenge and ensuring staff have the opportunity to learn, develop and think innovatively is one of the many ways Main Roads will continue to strengthen the organisation.

The achievement of Main Roads’ objectives in each of the six areas of strategic focus together with the necessary values, behaviours, skills, expertise and development capability will ensure that Main Roads is able to deliver its key business activities.

The Key Performance Indicator (KPI) for the Building and Expanding Capabilities Strategy is measured by the percentage increase in capability. The target is to increase capability within Main Roads from January 2004 to December 2007 by 15%.

The KPI is based on fifteen key elements >«>LÌÞÊ`iÝ grouped into the following areas; £È percentage of workforce and retention rates of employees in technical and £{ non-technical development categories, £Ó percentage of design delivered by in- house services, increase in technical £ä and non-technical capability, percentage n of budget spent on learning and development, rating of development È opportunities through the Employee { Opinion Poll and average development requirements per employee. To date, as Ó demonstrated in the graph, Main Roads ä has achieved 14% of the targeted 15% >ä{ Õä{ >äx Õäx >äÈ ÕäÈ increase in capability. *iÀ` Target Capability Key achievements over the past year for the Building and Expanding Capability Strategy include:

• Ten appointments for the Main Roads Scholarship Program. • Promotion of Main Roads’ career opportunities and development programs at a series of external careers expos, in which career, education and development opportunities at Main Roads were promoted to the public. • Main Roads has been awarded an Australian Research Council grant to undertake a Values Driven Management Project with professors from Charles Sturt University

who have conducted an individual analysis of Main Roads managers' values « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 75

implementation ability. These results will form the In 2006, Main Roads launched the Senior Executive benchmark to gauge the success of the Values Development Program (SEDP) focusing on key Driven Management Project. corporate leadership themes of values, self-awareness • The Knowledge Management Strategy proposal and innovative thinking and practice. In partnership has been endorsed by Main Roads’ Corporate with The University of Western Australia and Charles Executive. Sturt University, Main Roads will use an Australian • Main Roads’ Careers Information Evenings were government research grant to explore corporate values held in October 2005 and May 2006 which a and on-the-job behaviours at Main Roads as part of total of 170 people attended. The objective of the the SEDP. evenings was to educate and inform interested The Main Roads Leaders for the Future Program technical and non-technical university graduates and continues to enhance the leadership capability of undergraduates about the opportunities available at individuals. In 2005-06, 30 people participated in Main Roads. the program. Of this 16 people have completed the • A 27 minute video showcasing living and working in program and are to be awarded a Graduate Certificate the regions has been produced, with an additional in Leadership and Management. 10 minute promotional video currently being The Middle Manager Development Program is being developed to showcase Main Roads’ technical introduced to bring together best practice theories on expertise and the attractions of working for management and leadership to deliver a Diploma of Main Roads. Frontline Management accredited learning program. • A series of one-hour recognition workshops was conducted with a cross section of Main Roads’ Engineering and Technical Excellence employees. The workshops were held to get As an engineering organisation, Main Roads prides itself employees’ input on a project aimed at increasing on the professional capability of its people. With a long the profile, attractiveness and capability of history of technical excellence, the continued Main Roads. development of engineering capability is an important • Tenders for the Middle Managers Learning Program part of its service to the Western Australian community. closed. The successful tenderer will be delivering In June 2005, the learning program was piloted the Middle Management Learning Program in with 22 employees involved in Project and Contract partnership with Main Roads. Management entering a Graduate Certificate in Creating a Learning Organisation Construction and Building Law program, in partnership In 2005-06, Main Roads dedicated approximately 6% with the University of Notre Dame Australia. In addition, of the payroll budget to the learning and development over 40 employees involved in Contract Management of staff, including involvement in learning programs, took part in Quality and Occupational Safety and part-time study and on-the-job learning opportunities. Health courses. Main Roads has focused on creating the leadership Main Roads learning partnerships with universities and capability required to lead the organisation into the future. TAFEs are critical to ensuring a sustainable workforce within the Road Construction and Maintenance Industry. Leadership Development A partnership with The University of Western Australia Leadership is seen as critical in positioning Main Roads is seeing the development of a specialist road and as a frontrunner in the international road industry. bridge engineering unit as part of the Bachelor of Civil Learning opportunities have continued to be provided Engineering course.

to nurture leadership within Development Employees. « PREVIOUS CONTENTS NEXT « 76 Main Roads Western Australia Annual Report 2006

Developing Our People Program >Ê,>`ÃÊ-Ì>vvÊÕÊ/i µÕÛ>iÌÊÓääÓÊÌÊÓääÇ The Developing Our People Program is about £äää developing Main Roads people so they have the specific skills required to undertake Main Roads’ asset management and program delivery as well as providing nää development opportunities through defined career

pathways. It focuses on the key disciplines Network Èää Operations, Asset Management, Project Management and Contract Management. The required competencies, {ää career pathways and development options for ÕLiÀÊvÊ-Ì>vv Asset Management and Project Management were corporately endorsed in May 2006. It is anticipated that Óää Network Operations will be finalised by the end of 2006.

The Developing Our People Program recognises the ä Óää£äÓ ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ importance of consultation and is working closely with Main Roads’ employees, unions, other State road >i`>ÀÊ9i>À authorities and the broader road construction industry. / ÊV>Ì / ÊÛiÀ>}i iÃÃ>ÌÃ It is envisaged that the learning and development program will be available to other Government agencies, Youth Initiatives Local Governments and the broader road construction Main Roads has implemented a significant number of industry to build and expand their capability. development programs focused on the recruitment of youth into the workforce. The development programs Individual Development Plans cater for youth at both professional and entry levels in Individual Development Plans (IDPs) continue to order to provide them with a solid foundation on which form the basis of the Main Roads learning culture to start their careers through ongoing training and skills through a sophisticated Performance Management development. and Development System. They help to facilitate The total number of current program participants conversation between managers and employees represents 12% of the total workforce. around the Main Roads strategic direction, values and specific development requirements. The 360 degree Number as development feedback component of IDPs has been at 30 June expanded to include Middle Managers. 2006 Technical Graduates 29 Specific Skills Development Business Graduates 23 As mentioned above Main Roads is utilising workforce planning techniques to match resource skills to its Engineering Cadets 18 business objectives. This involves identifying and Scholarship Students 10 prioritising critical functions within Main Roads, Engineering Associates 15 identifying external market trends and forecasting future Engineering Associate Cadets 7 workforce needs. Technical Trainees 2 This graph demonstrates that through workforce planning Main Roads has been able to track the Clerical Trainees 13 development of its workforce over the past years Total 117 and develop forecasts for future full time equivalent Main Roads FTEs 940 employee requirements. Percentage of workforce in 12

Development Categories « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 77

The Main Roads Cadetship and Scholarship programs are fundamental in attracting youth to both Main Roads and the Road Construction Industry through encouraging students to study Civil Engineering at either TAFE or university.

The Main Roads development programs are critical in ensuring that Main Roads has the workforce needed for the future. Workforce planning targets for these employees have been developed through to 2011 and it predicted that by this time, over 250 employees (nearly 25% of the organisation) will have come through a development program. The Patron of the REACH Foundation is His Excellency, the Governor of Western Australia, Dr Ken Michael AC. Technical Trainee Program In an effort to increase the representation of youth in Main Roads has identified an ageing technical workforce its workforce and build its capability, Main Roads has in regional areas and has implemented a recruitment put a great effort into its development programs and strategy to encourage young people in regional workforce planning. communities to apply for employment with Main Roads.

In 2006, Main Roads completed a two year pilot Effective Employee Relations traineeship project in the Kimberley Region. Four Main Roads works with employees and stakeholders young people recruited in the Kimberley Region have to create productive innovative workplaces which lead graduated with a Certificate III in Civil Construction (Road to successful workplace partnerships. Main Roads is Construction and Maintenance) and have accepted committed to fair employment practices and better positions of employment with Main Roads in the balance between work and family life. Kimberley, Pilbara and Goldfields-Esperance Regions. This year has seen a continuation of a constructive Due to the success of the pilot program, Main Roads workplace relations environment. Main Roads is now progressing with the development and has been dedicated to developing employment implementation of the Technical Traineeship Program opportunities and maintaining a positive and supportive throughout regional Western Australia. environment for all staff. In 2005-06, Main Roads has undertaken a review of its REACH Foundation classification and salary structure to ensure it remains Main Roads is working with a number of key competitive in the industry. The review will provide the stakeholders to seek support in regional areas to basis for the next round of bargaining which will take establish a community foundation to address skills place in the second half of 2006. shortages in the road construction industry and provide employment opportunities for young people in regional This year also saw an increased emphasis on expanding communities. Main Roads is partnering with Local family friendly initiatives with a particular focus on Government, contractors and other key stakeholders improving provisions in regional areas. in regional areas to develop traineeship opportunities in local communities.

The REACH (Regional Education and Careers in Highways) Foundation will develop, coordinate and implement traineeship programs which lead to careers within the road construction industry throughout

Western Australia. « PREVIOUS CONTENTS NEXT « 78 Main Roads Western Australia Annual Report 2006

Embracing Our Diversity Health and Lifestyle Program Main Roads promotes management practices that are Investment in the health of employees is critical to the free of bias and discrimination to create and maintain wellbeing of the individual, as well as the business. an equitable diverse workforce. Main Roads has Through the Main Roads Health and Lifestyle Program, progressed a number of the initiatives under its new employees are given the opportunity to improve their Main Roads Diversity Plan – ‘The Road to Diversity health and general quality of life through a range of fun 2007’. Significant achievements in 2005-06 include: activities and community related events. Partners and • Coordinated the celebration of International immediate family of staff are also invited to participate, Women’s Day to launch the Women in Management reinforcing the Main Roads value of family and Strategy and the Women in Roads Network. emphasising good health at work as well as at home. • Undertook a Women in Management Survey 2005 Employee Opinion Poll of women within Main Roads to determine the barriers that they encounter to reach management The Employee Opinion Poll was successfully conducted levels, what support they were looking for and in 2005 with an organisational response rate of 60%. what programs and strategies would assist their From the results corporate priorities were identified for progression into senior management. action that includes: • Enlisted Main Roads in being a Lunchbox List • The recruitment process being timely and effective in Supporter for events emphasising networking and attracting and employing good people career enhancement skills for staff, through key • Main Roads planning, prioritising, allocating and speakers. managing resources effectively • Launched Main Roads Lunch-n-Learn seminars • Corporate Executive listening and responding that enlist key speakers on topics such as, work–life appropriately to employees balance, goal setting, career enhancement and time • Having adequate information and resources to do management. my job properly.

Main Roads has supported the engineering profession Are You Being Served within the Western Australian Indigenous community. In February 2006, the Organisational Development A financial contribution towards the sponsorship of four Customer Service Team initiated a project that would Western Australian students to attend the Indigenous assist to determine the current organisational culture Australian Engineering Summer School has encouraged and areas for improvement throughout Main Roads. the best Indigenous students to consider an engineering The project concept was derived from the 2005 career with Main Roads. Over the next year Main Roads Employee Opinion Poll findings. The project involved key focus will be to: performing one on one – face to face discussions • Progress improvements to the representation of with every employee in the organisation, an analysis women in senior management of discussion results, a project overview and the • Progress the Employing and Engaging Indigenous preparation of a report containing all project information Australians strategy and Work–Life Balance Strategy. to Corporate Executive members.

Work–life Balance Mature Age Workforce Strategy A great emphasis has been placed on promoting Main Roads is the State’s longest serving public sector work–life balance and flexible working arrangements organisation, with a proud history of attracting and that were incorporated into Main Roads’ last Enterprise retaining employees from the start to the end of their Bargaining Agreement. Main Roads held its first Family career. The nature of its business and the sustainability Day celebrating its ‘Family’ value and promoting of the road industry itself were dependent on the ability workplace flexibility and family friendly initiatives. of the organisation to retain mature workers and to utilise Further progress has been achieved on a Child Care their wealth of knowledge and experience in different and

Feasibility Study. more suited roles in the advanced stages of their careers. « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 79

Currently at Main Roads, employees aged 40 years and Recognition of Achievements over contribute to more than 65% of the entire workforce Main Roads strives to be an ‘Employer of Choice’. and as a result, a number of mature age initiatives have This goal is underpinned by all of Main Roads’ values. been implemented. Specific initiatives include: It recognises the work of Main Roads people and • Developing and coordinating phased retirement represents a commitment and a level of responsibility for options for employees its employees, where creativity is fostered and everyone • Coordinating retirement seminars is valued. This commitment to achieving the best for • Reviewing roles and responsibilities of mature the workforce can be illustrated through the awards employees Main Roads has won in 2005: • Undertaking “individual development planning” 2005 Australian Human Resources • Offering flexible working arrangements and work Institute Awards redesign • State Winner – Excellence in People Management, • Creating a knowledge management culture Medium Enterprise – Public/Not for Profit Sector. • Establishing the Main Roads Alumni. • National Finalist – Excellence in People Main Roads is the first Western Australian public sector Management, Medium Enterprise – Public/Not for organisation to have a Senior Executive Service person Profit Sector. on phased retirement.

Main Roads Functional Age Profile – Data Table <30 30–40 40–50 >50 Total Asset Management 3 7 17 13 40 Business Management 0 4 12 8 24 Business Support 376 36 49 68 190 Customer Management 7 9 6 11 33 Environmental Management 1 2 1 4 8 Executive Management 0 2 4 12 18 Finance Management 1 4 2 2 9 Graduate/Cadet Development 70 12 0 0 82 Human Resource Management 7 3 5 2 17 Information/Data 0 6 15 15 36 Leadership and Management 0 1 12 20 33 Materials Envineering 0 6 16 18 40 Other 0 1 4 15 20 Programming 0 5 6 8 19 Project/Contract Management 8 28 43 64 143 Road Design and Management 2 11 10 10 33 Structural Engineering 1 5 7 9 22 Surveillance 5 5 27 52 89 Traffic Management and Road 7 20 43 54 124 Trainee 10 0 0 0 10 Technical Support 11 9 21 22 63 Vacational 3 0 0 0 32

Totals 173 176 300 407 1 056 « PREVIOUS CONTENTS NEXT « 80 Main Roads Western Australia Annual Report 2006

• National Finalist – Innovation Award for Managing an Salary and Employee Numbers Aging Workforce. Salary Range ($) Women Men Total 0 – 38 660 48 72 120 2005 Australian Human Resources Awards 38 661 – 44 542 25 39 64 • National Winner – Best Mature Age Workforce Strategy 44 543 – 50 155 51 71 122 • National Finalist – Best Work–Life Integration Strategy 50 156 – 55 794 30 96 126 • National Finalist – Employer of Choice (public sector) 55 795 – 64 927 61 126 187 These awards are significant in reinforcing that 64 928 – 75 658 24 124 148 Main Roads values its employees and has a strong, highly 75 659 – 85 692 18 112 130 engaged and committed workforce. Being an Employer 85 693 – 98 179 4 92 96 of Choice is an opportunity for Main Roads employees to 98 180 – 111 508 1 49 50 show their commitment and pride as an organisation. Greater than 0 13 13 Next year, Main Roads will be participating in the ‘Hewitt 111 508 Employer of Choice’ study, an internationally recognised Totals 262 794 1 056 accreditation. Offices, Depots and Employee Accommodation Compliance with Public Sector To assist in building, expanding and retaining capability Standards and Ethical Codes in regional service delivery areas, it is important to Main Roads’ policies and procedures support the public provide an appropriate work environment. A new sector standards for human resources management. regional office was constructed in Boulder to service All Executive Directors, Senior and Middle Managers the Goldfields-Esperance Region during 2005. This are accountable and responsible for compliance with new building has been designed to have an Australian public sector standards and the code of conduct. Building Greenhouse Rating (ABGR) of four stars. The Organisational Development Directorate provides Main Roads’ Corporate Executive has endorsed a guidance, advice and support on compliance with strategy to improve the standard of staff housing in the standards. In 2005-06, Main Roads has had no the regions over the next 10 years. Over the length of breaches upheld, with only three claims lodged. the program this strategy will reduce the average age Main Roads is currently working on ways to further of housing to less than 10 years old and increase the improve process in line with standards, procedures and number of four bedroom, two bathroom units to 70%. policies to ensure that practices continue to meet and The new administration building in Bunbury that was exceed the requirements set out in the standards. constructed in 2004-05 has received awards from the Breach of Standard 2004- 2005- Master Builders Association. The awards included the Applications 05 06 Best State Government Building – Regional Western Breach claims lodged 19 3 Australia under $4 million and Best Practice in Building Breach claims upheld 0 0 Sustainability. The building also received a commendation Multiple breaches 0 0 in the Ecologically Sustainable Development category. Applications under review 0 0 Material breaches 0 0

Non-material breaches 0 0 « PREVIOUS CONTENTS NEXT « Main Roads Western Australia Annual Report 2006 81

Audited Key Performance Indicators, Financial Statements 08

and Notes « PREVIOUS CONTENTS NEXT « 82 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 83

Statement of Certification

Key Performance Indicators I hereby certify that the following Key Performance Indicators are based on proper records are relevant and appropriate for assisting users to assess Main Roads’ performance, and fairly represent the performance of the Commissioner of Main Roads for the financial year ended 30 June 2006.

Financial Statements & Notes The accompanying financial statements of the Commissioner of Main Roads have been prepared in compliance with the provisions of the Financial Administration and Audit Act 1985 from proper accounts and records to present fairly the financial transactions for the year ending 30 June 2006 and the financial position as at 30 June 2006.

At the date of signing we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.

Menno Henneveld Commissioner of Main Roads Accountable Authority 19 September 2006

Peter Woronzow Principal Accounting Officer

19 September 2006 « PREVIOUS CONTENTS NEXT « 82 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 83

AUDITOR GENERAL

INDEPENDENT AUDIT OPINION

To the Parliament of Western Australia

COMMISSIONER OF MAIN ROADS FINANCIAL STATEMENTS AND PERFORMANCE INDICATORS FOR THE YEAR ENDED 30 JUNE 2006

Audit Opinion In my opinion, (i) the financial statements are based on proper accounts and present fairly the financial position of the Commissioner of Main Roads at 30 June 2006 and the financial performance and cash flows for the year ended on that date. They are in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia and the Treasurer’s Instructions; (ii) the controls exercised by the Commissioner of Main Roads provide reasonable assurance that the receipt, expenditure and investment of moneys, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and (iii) the key effectiveness and efficiency performance indicators of the Commissioner of Main Roads are relevant and appropriate to help users assess the Commissioner of Main Roads’s performance and fairly represent the indicated performance for the year ended 30 June 2006.

Scope The Commissioner is responsible for keeping proper accounts and maintaining adequate systems of internal control, for preparing the financial statements and performance indicators, and complying with the Financial Administration and Audit Act 1985 (the Act) and other relevant written law.

The financial statements consist of the Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and the Notes to the Financial Statements.

The performance indicators consist of key indicators of effectiveness and efficiency.

Summary of my Role As required by the Act, I have independently audited the accounts, financial statements and performance indicators to express an opinion on the financial statements, controls and performance indicators. This was done by testing selected samples of the evidence. Further information on my audit approach is provided in my audit practice statement. Refer "http://www.audit.wa.gov.au/pubs/Audit-Practice-Statement.pdf".

An audit does not guarantee that every amount and disclosure in the financial statements and performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and performance indicators.

D D R PEARSON

AUDITOR GENERAL

22 September 2006

« 4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664 « « PREVIOUS CONTENTS NEXT 84 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 85

Key Performance Indicators

Summary of Outcomes

EFFECTIVENESS MAIN ROADS OUTCOME EFFICIENCY INDICATORS INDICATORS PROGRAM 1 1.1 1.2 1.2.1 Efficient Road a) Community Satisfaction Road Network a) Average cost per lane Access for Road b) Road Network Permitted Operations kilometre of network Users for use by Heavy Freight Management managed Vehicles 1.3 1.3.1 c) Road Standards Road Use Efficiency a) Average road d) Bridge Standards Improvements improvement cost per e) Peak Hour Travel Times lane kilometre b) Average cost per intersection improvement c) Average cost for bridge strengthening per square metre 1.4 1.4.1 Road Infrastructure for a) Average cost of road Community Access construction per lane kilometre (by road type) b) Average cost of treatment undertaken c) Average cost of bridge deck constructed per square metre 2 2.1 2.2 2.2.1 Safe Road Access a) Road Fatality Rate Road Use Safety a) Average cost of road for Roads Users b) Community Perception Improvements construction per lane of Road Safety kilometre (by road type) b) Average cost of improvements undertaken 3 3.1 3.2 3.2.1 A well maintained a) Smooth Travel Exposure Road Network a) Average cost per lane Road Network b) Community Perception Maintenance kilometre of road network of Ride Quality maintained 4 4.1 4.2 4.2.1 Road Infrastructure a) Return on Construction Road Infrastructure for a) Average cost of road that supports Expenditure State Development construction per lane Economic kilometre (by road type) and Regional b) Average cost per Development square metre of bridges constructed (by concrete

and timber bridges) « PREVIOUS CONTENTS NEXT « 84 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 85

1. Outcome: Efficient Road Access ÕÌÞÊ->ÌÃv>VÌ £ää for Road Users

1.1 Effectiveness Indicator nä a) Community Satisfaction Èä An external research company is commissioned to undertake the Community Perceptions Survey and report on the findings on an annual basis. {ä

The data is collected by way of telephone interviewing using a developed structured questionnaire. Óä ¯Ê>ÃÃiÃÃ}Ê«iÀvÀ>ViÊº"»ÊÀÊLiÌÌiÀ The population for the purpose of the research is all Western Australian residents 17 years of age and ä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ over. A sample of 900 residents from rural areas (100 >V>Ê9i>À respondents from each region) and 250 residents from the Perth metropolitan area are surveyed. A stratified Note: The total sample of 1 150 produces a sampling random sample is taken from the population ensuring precision of +/- 2.9% at the 95% confidence interval. That is to that each person is given equal opportunity of being say that Main Roads would be 95% confident that the results would be within +/-2.9% should a census of the population selected. be undertaken.

The collected data is weighted to reflect the actual As shown above, overall performance has fallen slightly population distribution based on Australian Bureau of during the year; down two percentage points from 92% Statistics (ABS) statistics. in 2005 to 90% in 2006. Despite this marginal fall, the Respondents are asked to rate Main Roads’ overall current results represent an exceptionally high level of performance on a five point scale, where 1 represents overall performance. ‘terrible’ and 5 represents ‘excellent’. b) Road Network Permitted for use by Heavy In 2006 nine in ten (90%) respondents rate Main Roads’ Freight Vehicles performance as okay or better (a rating of 3-5 out of The use of larger vehicles with greater payloads can five). This is comprised of 8% of respondents giving a increase the overall efficiency of freight transport rating of five out of five (or excellent), 44% giving a rating operations, resulting in lower transport costs. However, of four out of five (good) and 38% giving a rating of to maintain road safety and guard against infrastructure three out of five (okay). Only a small minority are of the damage, restrictions are placed on trucks that are larger opinion that Main Roads’ performance is either terrible than AUSTROADS Class 9. These include B-doubles (2%) or poor (8%). (Class 10), double road trains (Class 11) and triple road trains (Class 12). Because of the relatively high efficiency of these vehicles, the proportion of roads accessible to them is an important factor in the overall efficiency of freight transport in this State.

The accompanying chart shows the extent to which the combined National and State road network in Western Australia is accessible to these classes of vehicle. This indicator relates to the efficient movement of goods

within Western Australia. « PREVIOUS CONTENTS NEXT « 86 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 87

Asset Network Information Branch provides the total ,>`Ê-Ì>`>À`ÃÊqÊ6i ViÊiÌÀiÃÊ/À>Ûii`ÊÊ road length figures. Heavy Vehicle Operations provides ,>`ÃÊ iiÌ}Ê"«iÀ>Ì>Ê-Ì>`>À`Ã the information on road lengths available to various Èä classes of vehicle by interrogation of the Restricted Access Vehicle (RAV) Networks. xä

,>`Ê iÌÜÀÊ*iÀÌÌi`ÊvÀÊÕÃiÊLÞÊi>ÛÞÊÀi} ÌÊ6i ViÃ {ä £ää

Îä

nä

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¯ÊvÊ/Ì>Ê6i ViÊiÌÀiÃÊ/À>Ûii` £ä

{ä ä ÓääÎä{ Óää{äx ÓääxäÈ >V>Ê9i>À Óä ¯ÊvÊÌ iÊ-Ì>ÌiÊ,>`Ê iÌÜÀÊVViÃÃLi

The results in the above graph are based upon a revised ä Ê ÕLi ÕLiÊ,/Ê /À«iÊ,/ methodology for estimating the vehicle kilometres 6i ViÊ/Þ«i travelled on the network. The percentage of travel that ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ occurs on roads meeting operational standards has not >V>Ê9i>À changed significantly over the last three years.

d) Bridge Standards As there are very few B-double roads that are not This indicator shows the extent to which National accessible by double road trains, the B-double statistic Transport Commission (NTC) vehicles can travel on is only fractionally larger than the double road train bridges, governed by strength requirements. statistic and overall the results have remained stable. This standard provides for a safe and efficient road network and is based upon standards relating to c) Road Standards improved transport efficiencies. The bridge standards This indicator is a demand related measure of the indicator gives an indication of Main Roads ability to plan effectiveness of improvement expenditure. It shows the for and maintain bridges to changing load standards for extent to which vehicles travel on roads, which conform, freight vehicles. to the operational standards of seal width, shoulder width and design speed. These standards provide for a safe and efficient road network and are based upon

National Standards relating to road usage. « PREVIOUS CONTENTS NEXT « 86 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 87

The following graph indicates the percentage of bridges e) Peak Hour Travel Times accessible to NTC vehicles, reported over time:- Main Roads effectiveness in facilitating the efficient movement of people and goods in the Metropolitan À`}iÊ-Ì>`>À`ÃÊqÊVViÃÃLiÊÌÊ / region is indicated by morning peak-hour travel times. £ää The graphs show the trend in morning peak-hour travel times over the last three years from nine Metropolitan nä centres to the boundary of the Perth Central Area. The data indicates a general trend of increasing travel times over the five year period in the Perth metro road Èä network consistent with growth in population and urban development.

¯ÊVViÃÃLi {ä ° °Ê*i>ÊÕÀÊ/À>ÛiÊ/iÃ\Ê7>iÀÊ>`Ê`>Õ«

Óä {ä

Îx ä Óää£äÓ ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ Îä >V>Ê9i>À VÌÕ> />À}iÌ Óx

There is a project under way to upgrade the NTC Óä deficient bridges, having been identified in a National £x

study titled ‘The Effect of the NTC Mass Limits Review’. ÕÌiÃÊvÊ/À>Ûi

Federal funds have been committed to National £ä Highway bridges and some State Road bridges, with further funds being sought on other deficient bridges x

throughout Western Australia. ä ÓääÎä{ Óää{äx ÓääxäÈ As such, the percentage of bridges accessible to >V>Ê9i>À these NTC vehicles should continue to rise slightly in 7>iÀ `>Õ« subsequent years. There is a commitment to open up the road freight network to road friendly suspensions ° °Ê*i>ÊÕÀÊ/À>ÛiÊ/iÃ\Ê `>`Ê>`Ê>>Õ`> that accommodate higher axle loadings and therefore xä provide increased freight efficiency.

{ä

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ä ÓääÎä{ Óää{äx ÓääxäÈ >V>Ê9i>À

`>` >>Õ`> « PREVIOUS CONTENTS NEXT « 88 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 89

° °Ê*i>ÊÕÀÊ/À>ÛiÊ/iÃ\ÊÀ>`>i]Ê The survey indicated that there was a slight reduction >`ÛÃÊ,V} >®]Ê"Ài>Ê>`ÊÀi>Ìi in the morning peak-hour travel time on the Joondalup Èä route (Ocean Reef/Freeway). However, this slight reduction in mean travel time is not statistically xä significant. It is noted that the 2005-06 data is based upon only two weeks of survey data, whereas the {ä 2003-04 to 2004-05 surveys were based upon three weeks of survey data. Îä The morning peak-hour travel times over the

ÕÌiÃÊvÊ/À>Ûi Óä Rockingham route continued to be affected by roadworks on the freeway associated with construction

£ä of the Perth to Mandurah railway. Travel time on this route was still elevated despite a slight reduction from

ä 2004-05 to 2005-06. ÓääÎä{ Óää{äx ÓääxäÈ >V>Ê9i>À Travel time on the Baldivis route was surveyed for the

À>`>i ,V} > >`ÛÃ "Ài> Ài>Ìi first time in 2005-06.

There was a slight increase in morning peak-hour travel times from to 2004-05 to 2005-06 over the Midland, Kalamunda, Fremantle and Orelia routes, caused by general growth in traffic. Travel time on the Armadale route was the same as in 2004-2005.

During 2005-06, there was a steady increase in the morning peak-hour travel time from 2004-05 on the Wanneroo route (Wanneroo Road/Charles Street). This may be caused by growth in traffic from significant residential and commercial development east of

Wanneroo Road. « PREVIOUS CONTENTS NEXT « 88 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 89

1.2 Road Network Operations 1.3 Road Use Efficiency Improvements Management Program Program 1.2.1 Efficiency Indicator 1.3.1 Efficiency Indicator The Program Objective is to optimise real time The Program Objective is to improve the efficiency, management of the network, provide traveller capacity and utilisation of the existing road network. information and support delivery of projects. Over 2005-06, $70.6 million was expended on Road Over 2005-06, $81.9 million was expended on Road Use Efficiency Improvements which made up 9% of the Network Operations Management which made up total road program. 11% of the total road program. a) Average road improvement cost per lane a) Average cost per lane kilometre of network kilometre managed This indicator identifies the average cost per lane This indicator represents the financial efficiency of the kilometre of undertaking improvement works on the Road Network Operations Management by showing the State network funded under the Road Use Efficiency cost lane per kilometre to manage the operations of the program during the last four years. State road network. ,>`Ê1ÃiÊ vvViVÞÊ«ÀÛiiÌÃ Program Management was introduced in 2004 with ÛiÀ>}iÊ,>`Ê«ÀÛiiÌÊ ÃÌÊ«iÀÊ>iÊiÌÀi two years retrospectively aligned to the new program fÈääÊäää structure using set business rules. While broad comparisons are possible there are some differences fxääÊäää between the years prior to 2004-05 such as the higher levels of project development activity in 2003-04 which f{ääÊäää from 2004-05 is reported in other Programs. fÎääÊäää

,>`Ê iÌÜÀÊ"«iÀ>ÌÃÊ >>}iiÌ fÊ«iÀÊ>iÊ fÓÊxää fÓääÊäää

f£ääÊäää fÓÊäää

fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ f£Êxää ÓääxäÈÊ >ÀÃ

f£Êäää fÊ«iÀÊ>iÊ The high cost and short lane kilometre length of the Leach Highway/Orrong Intersection project has resulted in the significant increase in costs per lane kilometre for fxää 2005-06.

fä b) Average cost per intersection improvement ÓääÎä{ Óää{äx ÓääxäÈ ÓääxäÈÊ >ÀÃ This indicator identifies the average cost of intersection improvement works on the State network funded under the Road Use Efficiency program during the last

four years. « PREVIOUS CONTENTS NEXT « 90 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 91

The unit rate declined in 2005-06 compared to 1.4 Road Infrastructure for 2004-05 despite the overheads rate increasing from Community Access Program 10% to 15.6%. This is a result of the general nature of 1.4.1 Efficiency Indicator the works undertaken rather than any specific issue. The Program objective is to provide infrastructure ,>`Ê1ÃiÊ vvViVÞÊ«ÀÛiiÌÃ ÛiÀ>}iÊ ÃÌÊ«iÀÊÌiÀÃiVÌÊ«ÀÛiiÌ that will improve personal mobility and community fÓxäÊäää access through improving current standards of access including increasing quality of access where appropriate, providing levels of access commensurate fÓääÊäää with community expectations, determining what those community expectations are and meeting the minimum f£xäÊäää level of appropriate access.

During 2005-06, $106.3 million was expended on Road f£ääÊäää Infrastructure for Community Access which made up 14% of the total road program.

ÛiÀ>}iÊ ÃÌÊ«iÀÊ«ÀÛiiÌ fxäÊäää a) Average cost of road construction per lane kilometre by road type fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ This indicator identifies the average cost per lane ÓääxäÈÊ >ÀÃ kilometre of constructing various types of roads under the Road Infrastructure for Community Access program c) Average cost for bridge strengthening per over the last four years. square metre The graph shows the unit rates of constructing Rural This indicator identifies the average cost of bridge Highways and Rural Main Roads. strengthening works on the State network funded under the Road Use Efficiency program during the last four years. ,>`ÊvÀ>ÃÌÀÕVÌÕÀiÊvÀÊ ÕÌÞÊVViÃÃ ,>`Ê1ÃiÊ vvViVÞÊ«ÀÛiiÌÃ f£ÊäääÊäää ÛiÀ>}iÊ ÃÌÊvÀÊ À`}iÊ-ÌÀi}Ì i}Ê«iÀÊ-µÕ>ÀiÊ iÌÀi fÓÊäää

fnääÊäää

f£Êxää fÈääÊäää

f£Êäää f{ääÊäää fÊ«iÀÊ>iÊiÌÀi

fÊ«iÀÊ-µÕ>ÀiÊ iÌÀi fÓääÊäää fxää

fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ

fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ ÓääxäÈÊ >ÀÃ

ÓääxäÈÊ >ÀÃ ,ÕÀ>Ê} Ü>ÞÃ ,ÕÀ>Ê >Ê,>`Ã Minor strengthening works were carried out on only two bridges in 2004-05 which resulted in the lower than normal cost per square metre. During 2005-06, only one bridge project, Brockman River Great Northern Highway was completed under this program. This was

valued at $440 000. « PREVIOUS CONTENTS NEXT « 90 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 91

The large increase in unit costs from 2004-05 to c) Average cost of bridge deck constructed per 2005-06 for Rural Highways is due to the nature of the square metre works and remote location of the approach roads to the This indicator identifies the average cost per square new Dunham River Bridge on Great Northern Highway metre of constructing concrete bridges on the State in the Kimberley Region. network funded under the Road Infrastructure for The significant increase in unit costs for Rural Community Access program over the last four years.

Main Roads is attributed to the high cost and the ,>`ÊvÀ>ÃÌÀÕVÌÕÀiÊvÀÊ ÕÌÞÊVViÃÃ remote location for the Karratha Tom Price Stage ÛiÀ>}iÊ ÃÌÊvÊ À`}iÊ iVÊ ÃÌÀÕVÌi`Ê«iÀÊ-µÕ>ÀiÊ iÌÀi 2 in the Pilbara Region. The total project is valued f£ÓÊäää at $125.8 million of which $12.01 million has been expended in 2005-06. f£äÊäää

No Rural Highways were constructed in 2003-04 under fnÊäää the Road Infrastructure for Community Access Program.

No Freeways, Urban Highways and Urban Main Roads fÈÊäää were constructed during the last four years under the fÊ«iÀÊ-µÕ>ÀiÊ iÌÀi Road Infrastructure for Community Access Program. f{Êäää

b) Average cost of treatment undertaken fÓÊäää This indicator identifies the average cost of treatments

undertaken on the State network funded under the fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ Road Infrastructure for Community Access program ÓääxäÈÊ >ÀÃ over the last four years.

The treatment includes facilities for vulnerable road The high unit costs of undertaking the New Metro Rail users such as installation of puffin and parallel crossings Bridge activity Narrows to Glen Iris is attributed to the and construction of pedestrian refuge islands. increased unit cost from 2004-05 to 2005-06. ,>`ÊvÀ>ÃÌÀÕVÌÕÀiÊvÀÊ ÕÌÞÊVViÃÃ ÛiÀ>}iÊ ÃÌÊvÊ/Ài>ÌiÌÃÊÕ`iÀÌ>i f£ääÊäää

fnäÊäää

fÈäÊäää

fÊ«iÀÊ/Ài>ÌiÌ f{äÊäää

fÓäÊäää

fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ ÓääxäÈÊ >ÀÃ

No treatments were undertaken in 2002-03, 2003-04 and 2005-06 under the Road Infrastructure for the

Community Access Program. « PREVIOUS CONTENTS NEXT « 92 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 93

2. Outcome: Safe Road Access b) Community Perception of Road Safety The 2006 Community Perceptions Survey shows 2.1 Effectiveness Indicator that road safety is rated as a very important issue for Western Australians. a) Road Fatality Rate

The graph shows the road fatality rates per 100 million ÕÌÞÊ->ÌÃv>VÌÊÜÌ Ê,>`Ê->viÌÞ vehicles kilometres travelled (100MVKT) from 2001 to 2005 for Western Australia and Australia-wide. £ää

,>`Ê>Ì>ÌÞÊ,>ÌiÃ «iÀÊ£ääÊ Ê6i ViÊiÌÀiÃÊ/À>Ûii`Ê6/® nä

£°ä Èä

ä°n {ä ¯Ê->ÌÃv>VÌ

ä°È Óä

ä°{

,>`Ê>Ì>ÌÞÊ,>Ìi ä iÌÀÊÀiiÜ>ÞÃ iÌÀÊ} Ü>ÞÃ ,ÕÀ>Ê} Ü>ÞÃ

ä°Ó ,>`Ê/Þ«i

Óää£äÓ ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ

>V>Ê9i>À ä°ä Óää£ ÓääÓ ÓääÎ Óää{ Óääx >i`>ÀÊ9i>À The results indicate weaker performance across both /Ì>Ê7 /Ì>ÊÕÃÌÀ>> freeways and highways. Some of this fall may be attributed to the greater than average number of fatal crashes in early 2006 and the significant disruption to The Western Australia fatality rate continues to the community resulting from major infrastructure and follow a downward trend and is now lower than the upgrading projects, such as the New Metro Rail works. national rate. In 2005 the road fatality rate for Australia was 0.81/100MVKT and for Western Australia was The proportion of rural road users rating the safety of 0.75/100MVKT. highways as okay or better fell significantly during the year; down six percentage points, from 89% in 2005 to Year Western Australia Road 83% in 2006. Fatalities 2001 165 Similarly, overall safety of freeways among metropolitan users also fell significantly; down three percentage 2002 179 points from 93% in 2005 to 90% in 2006. 2003 179 The overall safety of highways among metropolitan 2004 179 users was relatively static; down one percentage point 2005 162 from 93% in 2005 to 92% in 2006.

In 2005 Western Australia fatalities reached a new low

of 162 fatalities for the year. « PREVIOUS CONTENTS NEXT « 92 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 93

2.2 Road Use Safety Improvements No Rural Highways and Rural Main Roads were Program constructed in 2003-04 under the Road Use Safety Improvement program. 2.2.1 Efficiency Indicator The Program Objective is to reduce the road fatality No Freeways, Urban Highways and Urban Main Roads rate to be the best in Australia, minimise road factors were constructed during the last four years under the contributing to road trauma and reducing the serious under the Road Use Safety Improvement program. crash injury rate. b) Average cost of improvements undertaken During 2005-06, $74.6 million was expended on Road This indicator identifies the average cost per intersection Use Safety Improvements which made up 10% of the improvements undertaken on the State network funded total road program. under the Road Use Safety Improvement program over the last four years. a) Average cost of road construction per lane kilometre by road type ,>`Ê1ÃiÊ->viÌÞÊ«ÀÛiiÌÃ This indicator identifies the average cost per lane ÛiÀ>}iÊ ÃÌÊvÊ«ÀÛiiÌ kilometre of undertaking various types of improvements fÓxäÊäää funded under the Road Use Safety Improvement

program over the last four years. fÓääÊäää The graph shows the unit rates of improvements on

Rural Highways and Rural Main Roads. f£xäÊäää

,>`Ê1ÃiÊ->viÌÞÊ«ÀÛiiÌÃ fxääÊäää f£ääÊäää ÛiÀ>}iÊ ÃÌÊvÊ«ÀÛiiÌ

f{ääÊäää fxäÊäää

fÎääÊäää fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ ÓääxäÈÊ >ÀÃ

fÓääÊäää

fÊ«iÀÊ>iÊiÌÀi 3. Outcome: A Well Maintained f£ääÊäää Road Network

fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ 3.1 Effectiveness Indicator

ÓääxäÈÊ >ÀÃ a) Smooth Travel Exposure

,ÕÀ>Ê} Ü>ÞÃ ,ÕÀ>Ê >Ê,>`Ã Maintenance works are undertaken to meet recognised benchmark intervention standards, which limit the The increase in unit costs is attributed to the high exposure of road users to unexpected defects. costs associated with construction of passing lanes at Well maintained roads provide a safer and more Hesters Hill on South Western Highway and Toodyay comfortable ride and contribute to lower vehicle Road. The projects are valued at $3.3 million. operating costs, particularly for heavy vehicles. They are also more likely to achieve their optimum life at minimal total cost to the community. A key measure

of road condition is road roughness. « PREVIOUS CONTENTS NEXT « 94 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 95

Smooth Travel Exposure is a key indicator of the The results are based upon a random sample of effectiveness of road maintenance expenditure. It 1150 people (250 persons in the metropolitan area represents the proportion of travel undertaken each year and 900 persons in rural areas). When extending these on all roads with surface roughness less than 4.2 IRI results to estimate the percentage of satisfied Western (International Roughness Index), the national standard Australians, the margin of error is approximately 2% at that provides acceptable travel conditions for passenger the 95% confidence level. car users. ÕÌÞÊ*iÀVi«ÌÃÊ-ÕÀÛiÞÊqÊ,`iÊ+Õ>ÌÞ

-Ì Ê/À>ÛiÊ Ý«ÃÕÀi ¯ÊvÊ6i ViÊiÌÀiÃÊ/À>Ûii`Ê6/®ÊÊ,>`ÃÊ iiÌ}Ê,Õ} iÃÃÊ-Ì>`>À`Ã £ää

£ää

nä

Èä

{ä ¯ÊvÊ->ÌÃvi`Ê,iÃ«`iÌÃ {ä

Óä

¯ÊvÊ/Ì>Ê6i ViÊiÌÀiÃÊ/À>Ûii`Ê6/® ä iÌÀÊÀiiÜ>ÞÃ iÌÀÊ} Ü>ÞÃ ,ÕÀ>Ê} Ü>ÞÃ ä ,>`Ê/Þ«i -7 6V +` 7 - />Ã / >V>Ê9i>À Óää£äÓ ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ >V>Ê9i>À ÓääÎä{ Óää{äx ÓääxäÈ

During 2005-06 there was a significant decrease in Of the total travel on Western Australian sealed State the percentage of respondents that were satisfied with roads, 98.6% is undertaken on roads that meet the the ride quality of Metropolitan Freeways. It can be roughness standard. From the length perspective, reasonably assumed that this decreased satisfaction is 98.2% of these roads meet the roughness standard. related to the road works currently being undertaken These figures indicate that Western Australia along Kwinana Freeway. There was also a significant continuously provides smooth travel for road users. decrease in satisfaction in the ride quality of Rural Whilst recent figures are not yet available for other Highways. It should be noted, however, that this jurisdictions, prior years’ figures show that Western significant decrease follows a significant increase in Australia performs better, for this indicator, than satisfaction in Rural Highways that occurred during other jurisdictions. However, it should be noted that 2004-05. This suggests that the 2004-05 result for this indicator is very specific and should be read in Rural Highways was an anomaly. conjunction with the Road Standards Indicator at 1.1(c). The results are compatible with the results obtained b) Community Perception of Ride Quality for Indicator 3.1(a). That is, a large proportion of travel occurs on roads meeting roughness standards. Physical measurements of the road network are further supported by results from the Annual Community Perceptions Survey. Respondents were asked to rate the condition, or ride quality, of the road network under Main Roads’ control. The Ride Quality Indicator summarises the percentage of respondents that were

satisfied with the ride quality of the network. « PREVIOUS CONTENTS NEXT « 94 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 95

3.2 Road Network Maintenance 4. Outcome: Road Infrastructure Program that supports Economic and 3.2.1 Efficiency Indicator The Program Objective is to maintain the existing Regional Development road and bridge network by maximising asset life and minimising whole of life costs. 4.1 Effectiveness Indicator

Over 2005-06, $272.9 million was expended on Road a) Return on Construction Expenditure Network Maintenance which made up 36% of the total New road and bridge construction works add to the road program. capacity of the road network. Return on Construction Expenditure is based on Benefit Cost Ratio (BCR) a) Average cost per lane kilometre of road estimates of a data set of projects undertaken each year network maintained by Main Roads. It indicates the extent to which road This indicator represents the financial efficiency of and bridge construction expenditure will deliver future road and roadside maintenance works by showing the economic benefits to the community. cost per lane kilometre to maintain acceptable travel The Indicator represents the distribution of BCRs for conditions on State Roads and the National Network. all projects, over $500 000, within Main Roads’ Road Works are undertaken on State Roads and the National Infrastructure for State Development Program. The Network to preserve the existing road asset to specified graph expresses the total dollar value of projects with standards. BCRs within each range as a percentage of the total for evaluated works over $500 000. ,>`Ê iÌÜÀÊ >Ìi>Vi ÛiÀ>}iÊ ÃÌÊ«iÀÊ>iÊiÌÀiÊvÊ iÌÜÀÊ >Ì>i` ,iÌÕÀÊÊ ÃÌÀÕVÌÊ Ý«i`ÌÕÀi fÈÊäää Õ>Ê,>`Ê Ý«>ÃÊ*À}À>Ê ,Ã xä

fxÊäää

{ä f{Êäää

Îä fÎÊäää

fÓÊäää

fÊ«iÀÊ>iÊiÌÀi Óä ¯Ê Ý«>ÃÊ Ý«i`ÌÕÀi

f£Êäää £ä

fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ ä ÓääxäÈÊ >ÀÃ , £ , Ó , Î , { , , r£ rÓ rÎ r{ rx x ,Ê,>}i The higher cost in 2005-06 is partly attributable to the Óää£äÓ ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ continued upward trend in the cost of oil based products. >V>Ê9i>À

The changes in the Return on Construction Expenditure effectiveness indicator from 2004-05 to 2005-06 can be explained by the completion of key projects such as Tonkin Highway and the commencement of new

projects such as the New Perth-Bunbury Highway. « PREVIOUS CONTENTS NEXT « 96 Main Roads Western Australia Annual Report 2006

4.2 Road Infrastructure for State The majority of expenditure in the Urban Highways Development Program category relates to Roe Highway works which were constructed with grade separated crossings. 4.2.1 Efficiency Indicator The Program Objective is to expand the road network No Freeways, Rural Highways and Urban Main Roads in accordance with State and Federal transport and were constructed in 2002-03, no Freeways, Urban land use strategies that will facilitate the economic and Main Roads and Rural Main Roads were constructed regional development of the State. in 2003-04, no Freeways, Urban Main Roads and Rural Main Roads were constructed in 2005-06 under the Over 2005-06, $144 million was expended on Road Road Infrastructure for State Development program. Infrastructure for State Development which made up 19% of the total road program. b) Average cost per square metre of bridges constructed by concrete and timber bridges a) Average cost of road construction per lane This indicator identifies the average cost per square kilometre by road type metre of constructing concrete bridges on the State This indicator identifies the average cost per lane network funded under the Road Infrastructure for State kilometre of constructing various types of roads funded Development program over the last four years. under the Road Infrastructure for State Development

program over the last four years. ,>`ÊvÀ>ÃÌÀÕVÌÕÀiÊvÀÊ-Ì>ÌiÊ iÛi«iÌ ÛiÀ>}iÊ ÃÌÊvÊ À`}iÊ iVÊ ÃÌÀÕVÌi`Ê«iÀÊ-µÕ>ÀiÊiÌÀi This graph shows the unit rates of constructing f£ÓÊäää Urban Highways, Rural Highways, Urban Main Roads and Freeways. f£äÊäää

,>`ÊvÀ>ÃÌÀÕVÌÕÀiÊvÀÊ-Ì>ÌiÊ iÛi«iÌ fnÊäää fÓÊäääÊäää

fÈÊäää

f£ÊxääÊäää f{Êäää fÊ«iÀÊ-µÕ>ÀiÊ iÌÀi

fÓÊäää f£ÊäääÊäää

fä ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ fÊ*iÀÊ>iÊiÌÀi ÓääxäÈÊ >ÀÃ fxääÊäää

The only eligible project in 2005-06 is the Roe Highway

fä South Street to Kwinana Freeway works. Due to the ÓääÓäÎ ÓääÎä{ Óää{äx ÓääxäÈ size and nature of this significant project it has pushed ÓääxäÈÊ >ÀÃ the unit cost to significantly higher levels than in 1ÀL>Ê} Ü>ÞÃ 1ÀL>Ê >Ê,>`Ã previous years.

,ÕÀ>Ê} Ü>ÞÃ ,ÕÀ>Ê >Ê,>`Ã « PREVIOUS CONTENTS NEXT « 96 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 97

Financial Statements and Notes Commissioner of Main Roads INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2006

Note 2006 2005 $’000 $’000

COST OF SERVICES Expenses Employee benefits expense 7 32,529 27,132 Supplies and services 8 260,782 276,483 Depreciation of infrastructure assets 10 141,427 130,196 Depreciation other non-current assets 11 2,840 1,550 Finance costs 12 7,978 10,427 Grants and subsidies 9 110,636 87,816 Capital user charge 14 55,084 33,716 Infrastructure assets retired/replaced 13 6,653 10,934 Superannuation 7 5,727 4,846 Total Cost of Services 623,656 583,100

Income Revenue Contributions to roadworks 16 7,525 11,283 Commonwealth grants and contributions 15 433,035 104,808 Sale of goods and services 19 73,055 95,834 Capitalisation of Road Infrastructure assets 20 – 28,085 Grants from other bodies 18 2,820 4,775 Other revenue 21 3,542 3,838 Total Revenue 519,977 248,623 Gains Gain on disposal of non-current assets 17 2,480 2,427 Total Gains 2,480 2,427

Total Income other than income from State Government 522,457 251,050 NET COST OF SERVICES 101,199 332,050

INCOME FROM STATE GOVERNMENT Service appropriation 22 484,464 486,207 Natural Disaster Funds 22 5,062 8,790 Road Trauma Trust Fund 22 – 500 Liabilities assumed by the Treasurer 22 1,696 906 Resources received free of charge 22 364 643 Total income from State Government 491,586 497,046 SURPLUS FOR THE PERIOD 390,387 164,996

Note: The Income Statement should be read in conjunction with the accompanying notes.

« « PREVIOUS CONTENTS NEXT « 98 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 99

Commissioner of Main Roads BALANCE SHEET AS AT 30 JUNE 2006

Note 2006 2005 $’000 $’000

ASSETS Current Assets Cash and cash equivalents 23 388,929 35,931 Restricted cash and cash equivalents 24 756 854 Inventories 27 864 1,134 Receivables 25 18,302 22,298 Amounts receivable for services 26 27,917 23,153 Prepayments 28 1,936 4,729 Non-current assets classified as held for sale 29 16,542 19,246 Total Current Assets 455,246 107,345 Non Current Assets Inventories 27 6,935 6,935 Receivables 25 968 186 Amounts receivable for services 26 663,994 546,549 Property, plant and equipment 30 91,406 71,960 Infrastructure 31 21,443,391 19,202,649 Intangible assets 32 682 731 Land acquired for roads 30 97,111 92,307 Surplus assets 30 50,410 66,552 Total Non-Current Assets 22,354,897 19,987,869 TOTAL ASSETS 22,810,143 20,095,214

LIABILITIES Current Liabilities Payables 34 119,526 100,998 Borrowings 35 35,730 35,730 Provisions 36 21,578 19,663 Total Current Liabilities 176,834 156,391 Non Current Liabilities Payables 34 449 80 Borrowings 35 75,372 111,102 Provisions 36 4,320 3,614 Total Non-Current Liabilities 80,141 114,796 Total Liabilities 256,975 271,187

NET ASSETS 22,553,168 19,824,027

EQUITY Contributed equity 37 1,044,379 824,211 Reserves 37 11,725,309 9,606,724 Accumulated surplus 37 9,783,480 9,393,092 Total Equity 22,553,168 19,824,027

Note: The Balance Sheet should be read in conjunction with the accompanying notes.

« « PREVIOUS CONTENTS NEXT « 98 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 99

Commissioner of Main Roads STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2006

Note 2006 2005 $’000 $’000

Balance of Equity at start of period 49 19,824,027 16,756,421

CONTRIBUTED EQUITY 37 Balance at start of period 824,211 641,355 Capital contribution 205,786 182,856 Other contributions by owners 14,382 – Balance at end of period 1,044,379 824,211

RESERVES 37 Asset Revaluation Reserve Balance at start of period 9,606,724 6,886,969 Gains from asset revaluation 2,118,585 2,719,755 Balance at end of period 11,725,309 9,606,724

ACCUMULATED SURPLUS (RETAINED EARNINGS) 37 Balance at start of period 9,393,092 9,228,096 Suplus for the period 390,387 164,996 Balance at end of period 9,783,480 9,393,092 Balance of Equity at end of period 22,553,168 19,824,027

Note: The Statement of Changes in Equity should be read in conjuction with the accompanying notes.

« « PREVIOUS CONTENTS NEXT « 100 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 101

Commissioner of Main Roads STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2006

Note 2006 2005 $’000 $’000

CASH FLOWS FROM STATE GOVERNMENT Service Appropriation 338,928 342,431 Capital Contributions 205,786 182,856 Holding Account Drawdowns 23,327 19,489 Natural Disaster Funding 5,648 8,203 Road Trauma Trust Fund – 500 Net Cash Provided by State Government 573,689 553,479

Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee Benefits (32,529) (26,682) Supplies and Services (258,914) (266,095) Capital User Charge (55,084) (33,716) Grants and Subsidies (77,068) (82,826) GST Payments on Purchases (55,196) (59,738) Finance Costs (8,623) (11,049)

Receipts Sale of Goods and Services 85,560 99,782 Commonwealth Grants and Contributions 433,035 104,808 GST Receipts on Sales 8,663 10,392 GST Receipts from Taxation Authority 44,928 48,535 Other receipts 1,319 1,242 Rent Received 1,965 2,371 Net Cash (Used in)/provided by Operating Activities 38 88,056 (212,976)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of non-current physical assets 19,919 8,527 Purchase of non-current physical assets (9,112) (11,379) Purchase of Infrastructure (283,922) (301,726) Net cash used in Investing activities (273,115) (304,578)

CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings (35,730) (35,730) Net cash used in Financing Activities (35,730) (35,730)

Net increase in cash and cash equivalents 352,900 195 Cash and cash equivalents at the beginning of the period 36,785 36,590 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 38 389,685 36,785

Note: The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

1. First time adoption of Australian ‘Amendments to Australian Accounting Standards equivalents to International (AASB 119)’, AASB 2005-4 ‘Amendments to Australian Financial Reporting Standards Accounting Standard [AASB 139, AASB 132, AASB 1, AASB 1023 & AASB 1038]’ and AASB 2005-6 General ‘Amendments to Australian Accounting Standards This is the Commissioner of Main Roads’ (Main Roads) [AASB 3]’ to the annual reporting period beginning 1 first published financial statements prepared under July 2005. AASB 2005-4 amends AASB 139 ‘Financial Australian equivalents to International Financial Instruments: Recognition and Measurement’ so that the Reporting Standards (AIFRS). ability to designate financial assets and financial liabilities Accounting Standard AASB 1 ‘First‑time Adoption at fair value is restricted. AASB 2005-6 excludes of Australian Equivalents to International Financial business combinations involving common control from Reporting Standards’ has been applied in preparing the scope of AASB 3 ‘Business Combinations’. these financial statements. Until 30 June 2005, the Reconciliations explaining the transition to AIFRS as at financial statements of Main Roads had been prepared 1 July 2004 and 30 June 2005 are provided at note 49 under the previous Australian Generally Accepted ‘Reconciliations explaining the transition to AIFRS’. Accounting Principles (AGAAP). Future impact of Australian Accounting Standards The Australian Accounting Standards Board (AASB) not yet operative adopted the Standards of the International Accounting Main Roads cannot early adopt an Australian Standards Board (IASB) for application to reporting Accounting Standard or UIG Interpretation unless periods beginning on or after 1 January 2005 by specifically permitted by TI 1101 ‘Application issuing AIFRS which comprise a Framework for the of Australian Accounting Standards and Other Preparation and Presentation of Financial Statements, Pronouncements’. As referred to in Note 1, TI 1101 Accounting Standards and the Urgent Issue Group has only mandated the early adoption of AASB 2005-4 (UIG) Interpretations. and AASB 2005-6. Consequently, Main Roads has not In accordance with the option provided by AASB 1 applied the following Australian Accounting Standards paragraph 36A and exercised by Treasurer’s and UIG Interpretations that have been issued but Instruction 1106 ‘Transition to Australian equivalents to are not yet effective. These will be applied from their International Financial Reporting Standards’, financial application date: instrument information prepared under AASB 132 and 1. AASB 7 ‘Financial Instruments: Disclosures’ AASB 139 will apply from 1 July 2005 and consequently (including consequential amendments in comparative information for financial instruments is AASB 2005-10 ‘Amendments to Australian presented on the previous AGAAP basis. All other Accounting Standards [AASB 132, AASB 101, comparative information has been prepared under the AASB 114, AASB 133, AASB 139, AASB 1, AIFRS basis. AASB 4, AASB 1023 & AASB 1038]’). This Standard requires new disclosures in relation to financial Early adoption of standards instruments. The Standard is required to be applied Main Roads cannot early adopt an Australian to annual reporting periods beginning on or after Accounting Standard or UIG Interpretation unless 1 January 2007. The Standard is considered specifically permitted by TI 1101 ‘Application to result in increased disclosures of an entity’s of Australian Accounting Standards and Other risks, enhanced disclosure about components Pronouncements’. This TI requires the early adoption of an entity’s financial position and performance, of revised AASB 119 ‘Employee Benefits’ as issued and changes to the way of presenting financial

in December 2004, AASB 2004-3 ‘Amendments to statements, but otherwise no financial impact.

Australian Accounting Standards’; AASB 2005-3

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

2. AASB 2004-3 ‘Amendments to Australian 6. UIG Interpretation 4 ‘Determining whether an Accounting Standards [AASB 119]’ (Actuarial gains Arrangement Contains a Lease’. This Interpretation and losses, group plans and disclosures). The deals with arrangements that comprise a transaction amendments arise from the release of the revised or a series of linked transactions that may not AASB 119. These amendments will not impact involve a legal form of a lease but by their nature are on the financial statements when the Standard deemed to be leases for the purposes of applying becomes operative. The Standard is required to AASB 117 ‘Leases’. At reporting date, Main Roads be applied to annual reporting periods beginning has not entered into any arrangements as specified on or after 1 January 2006. in the Interpretation so no impact will result when 3. AASB 2005-1 ‘Amendments to Australian the Interpretation is first applied. The Interpretation Accounting Standards [AASB 139]’ (Cash flow is required to be applied to annual reporting periods hedge accounting of forecast intragroup beginning on or after 1 January 2006. transactions). The amendment permits the foreign 7. UIG Interpretation 5 ‘Rights to Interests arising from currency risk of a highly probable intragroup forecast Decommissioning, Restoration and Environmental transaction to qualify as a hedged item in Funds’. This Interpretation deals with the accounting consolidated financial statements in certain for rights to interests arising from decommissioning, circumstances. Main Roads does not undertake this restoration and rehabilitation funds and for additional type of transaction so no impact will result when the contributions to such a fund. Main Roads does not Standard is first applied. The Standard is required to undertake transactions with these types of funds so be applied to annual reporting periods beginning on no impact will result when the Interpretation is first or after 1 January 2006. applied. The Interpretation is required to be applied 4. AASB 2005-5 ‘Amendments to Australian to annual reporting periods beginning on or after Accounting Standards [AASB 1 & AASB 139]’ 1 January 2006. (UIG 4 and UIG 5). The amendments arise from the approval of UIG Interpretations 4 and 5 (see 2. Summary of significant below). Main Roads does not undertake these types accounting policies of transactions so no impact will result when the (a) General Statement Standard is first applied. The Standard is required to The financial statements constitute a general purpose be applied to annual reporting periods beginning on financial report which has been prepared in accordance or after 1 January 2006. with the Australian Accounting Standards, the 5. AASB 2005-9 ‘Amendments to Australian Framework, Statements of Accounting Concepts and Accounting Standards [AASB 4, AASB 1023, other authoritative pronouncements of the Australian AASB 139 & AASB 132]’ (Financial guarantee Accounting Standards Board as applied by the contracts). The amendment deals with the treatment Treasurer’s Instructions. Several of these are modified of financial guarantee contracts, credit insurance by the Treasurer’s Instructions to vary application, contracts, letters of credit or credit derivative default disclosure, format and wording. contracts as either an “insurance contract” under The Financial Administration and Audit Act and the AASB 4 ‘Insurance Contracts’ or as a “financial Treasurer’s Instructions are legislative provisions guarantee contract” under AASB 139 ‘Financial governing the preparation of financial statements and Instruments: Recognition and Measurement’. take precedence over the Accounting Standards, the Main Roads does not undertake these types of Framework, Statements of Accounting Concepts and transactions so no impact will result when the other authoritative pronouncements of the Australian Standard is first applied. The Standard is required to Accounting Standards Board. be applied to annual reporting periods beginning on

or after 1 January 2006.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Where modification is required and has a material or (e) Income significant financial effect upon the reported results, details Revenue of that modification and the resulting financial effect are Revenue is measured at the fair value of consideration disclosed in the notes to the financial statements. received or receivable. Revenue is recognised for the major business activities as follows: (b) Basis of Preparation The financial statements have been prepared on the Sale of goods accrual basis of accounting using the historical cost Revenue is recognised from the sale of goods and convention, modified by the revaluation of land, buildings disposal of other assets when the significant risks and and infrastructure, which have been measured at fair value. rewards of ownership control transfer to the purchaser.

The accounting policies adopted in the preparation of Rendering of services the financial statements have been consistently applied Revenue is recognised on delivery of the service or by throughout all periods presented unless otherwise stated. reference to the stage of completion.

The financial statements are presented in Australian Interest dollars rounded to the nearest thousand dollars ($’000). Revenue is recognised as the interest accrues.

The judgements that have been made in the process Service Appropriations of applying Main Roads’ accounting policies that have Service Appropriations are recognised as revenues at the most significant effect on the amounts recognised nominal value in the period in which Main Roads gains in the financial statements are disclosed at note 4 control of the appropriated funds, which is at the time ‘Judgements made by management in applying those funds are deposited to the bank account or accounting policies’. credited to the holding account held at the Department The key assumptions made concerning the future, of Treasury and Finance (see note 22 ‘Income from and other key sources of estimation uncertainty at the State Government’). reporting date that have a significant risk of causing a Grants, donations, gifts and other non-reciprocal material adjustment to the carrying amounts of assets contributions and liabilities within the next financial year are disclosed Revenue is recognised at fair value when Main Roads at note 5 ‘Key sources of estimation uncertainty’. obtains control over the assets comprising the (c) Reporting Entity contributions, usually when cash is received. The reporting entity comprises Main Roads and entities Other non-reciprocal contributions that are not listed at note 46 ‘Related bodies’. contributions by owners are recognised at their fair value. Contributions of services are only recognised (d) Contributed Equity when a fair value can be reliably determined and the UIG Interpretation 1038 ‘Contributions by Owners services would be purchased if not donated. Made to Wholly-Owned Public Sector Entities’ Where contributions recognised as revenues during requires transfers in the nature of equity contributions the reporting period were obtained on the condition to be designated by the Government (the owner) as that they be expended in a particular manner or used contributions by owners (at the time of, or prior to over a particular period, and those conditions were transfer) before such transfers can be recognised undischarged as at the reporting date, the nature as equity contributions. Capital contributions of, and amounts pertaining to, those undischarged (appropriations) are designated as contributions by conditions are disclosed in the notes. owners by TI 955 ‘Contributions by Owners made to Wholly Owned Public Sector Entities’ and have been

credited directly to Contributed Equity.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Gains cost of replacing the remaining future economic benefits Gains may be realised or unrealised and are usually embodied in the asset, ie. the depreciated replacement recognised on a net basis. These include gains arising cost. The revaluation of land and buildings is provided on the disposal of non‑current assets and some independently on an annual basis by the Department of revaluations of non‑current assets. Land Information (Valuation Services). When buildings are revalued, the accumulated (f) Borrowing Costs depreciation is eliminated against the gross carrying Borrowing costs for qualifying assets are capitalised net amount of the asset and the net amount restated to the of any investment income earned on the unexpended revalued amount. portion of the borrowings. Other borrowing costs are expensed when incurred. The fair value of infrastructure, other than land under roads, is measured as the current depreciated (g) Property, Plant and Equipment and replacement cost (existing use basis) as the assets are Infrastructure specialised and no market evidence of value is available. Initial recognition and measurement The replacement cost is determined by Main Roads All items of property, plant and equipment and every three years by reference to the cost of a new asset infrastructure are initially recognised at cost. and adjusted in the intervening years by reference to a cost index (ABS Road and Bridge Construction Cost For items of property, plant and equipment and Index) that has been applied to ensure asset values do infrastructure acquired at no cost or for nominal cost, not materially differ from fair value. The value of roads the cost is their fair value at the date of acquisition. and principal shared paths (earthworks, drainage, Items of property, plant and equipment and pavements and seals), bridges and road furniture at infrastructure costing less than $5,000 are expensed in 30 June 2006 is based on the current depreciated the year of acquisition (other than where they form part replacement cost determined at 30 June 2005 by of a group of similar items which are significant in total). Main Roads, and a cost index (ABS Road and Bridge Construction Cost Index) has been applied to ensure Subsequent measurement asset values do not materially differ from fair value. After recognition as an asset, the revaluation model is used for the measurement of land, buildings and road As fair value is measured by reference to the cost infrastructure and the cost model for all other property, of a new asset, when infrastructure is revalued, the plant and equipment. Land, buildings and infrastructure accumulated depreciation is restated proportionately are carried at fair value less accumulated depreciation with the change in the gross carrying amount of the on buildings and infrastructure and accumulated asset so that the carrying amount of the asset after impairment losses. All other items of property, plant and revaluation equals its revalued amount. equipment are stated at historical cost less accumulated Work in Progress is recognised at cost. depreciation and accumulated impairment losses. The fair value of land under roads (i.e. land within road Where market evidence is available, the fair value of reserves) is based on the market value of the land land and buildings is determined on the basis of current adjoining the road reserve. The land values are provided market buying values determined by reference to recent by geographic location on an annual basis by the market transactions. Department of Land Information (Valuation Services) as Where market evidence is not available, the fair value follows: of land and buildings is determined on the basis of • Metropolitan area – median value for single existing use. This normally applies where buildings are residential land for each Local Government Area. specialised or where land use is restricted. Fair value for Land parcels up to 899 square metres are assumed

existing use assets is determined by reference to the to have a single residential zoning.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

• South West Region – nominal unimproved valuation Land is not depreciated. Depreciation on other assets rates covering the south west of the State from is calculated using the straight line method, using rates Geraldton to Esperance. which are reviewed annually. Estimated useful lives for • Balance of State – nominal unimproved valuation each class of depreciable asset are: rates based on leasehold rates for Crown land. Road Infrastructure:

The most significant assumptions in estimating fair value Earthworks Up to 173 years are made in assessing whether to apply the existing use Pavement, drainage and seals: basis to assets. Professional judgement by the valuer is Metropolitan asphalt roads 40 years required where the evidence does not provide a clear Sealed rural roads 50 years distinction between market type assets and existing Gravel roads 12 years use assets. Bridges 60 to 100 years Refer to note 30 ‘Property, plant and equipment’ Road Furniture 25 to 40 years and note 31 ‘Infrastructure’ for further information on Property, Plant & Equipment: revaluations. Buildings 25 to 40 years Land acquired for road reserves is initially reported as Plant and vehicles 5 to 10 years ‘land acquired for roadworks’ under ‘property, plant Equipment and Furniture 5 to 13 years and equipment’ until the land is required for road Computer Hardware and Software 3 to 13 years construction. It is then transferred to ‘land within road reserves’ and reported as part of infrastructure assets. Works of art controlled by Main Roads are classified as property, plant and equipment which are anticipated Land determined to be surplus to the requirements to have very long or indefinite useful lives. Their of the road reserve is available for disposal and is service potential has not, in any material sense, been transferred to ‘surplus land’ or ‘non current assets held consumed during the reporting period and so no for sale’ depending on the timetable for disposal. depreciation has been recognised.

Wherever possible, the properties are rented or leased There are no restrictions on title or property, plant and until required for roadworks. Income from these equipment pledged as security for liabilities. properties is recognised as revenue in the financial year it is earned. (h) Intangible Assets Depreciation All acquired and internally developed intangible assets All non-current assets, other than land and road are initially recognised at cost. For assets acquired at no earthworks, are estimated to have a limited useful life cost or for nominal cost, the cost is their fair value at the and are systematically depreciated over their estimated date of acquisition. useful lives in a manner that reflects the consumption of The cost model is applied for subsequent measurement their future economic benefits. requiring the asset to be carried at cost less any Road earthworks do not generally have a finite life. accumulated amortisation and accumulated impairment Physical deterioration and commercial obsolescence losses. are not significant factors. The small percentage of Amortisation for intangible assets with finite useful lives earthworks depreciated have been assessed to be is calculated for the period of the expected benefit substandard in terms of horizontal alignment and (estimated useful life) on the straight line basis using therefore impacted by technical obsolescence. An rates which are reviewed annually. The expected useful engineering review is completed annually to identify lives for each class of intangible asset are: these segments of the network. Software 3 to 5 years

Drainage easements Infinite

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Computer Software and Drainage Easements Refer to note 33 ‘Impairment of assets’ for the outcome Software that is an integral part of the related hardware of impairment reviews and testing. is treated as property, plant and equipment. Software Refer also to note 2(q) ‘Receivables’ and note 25 that is not an integral part of the related hardware is ‘Receivables’ for impairment of receivables. treated as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition. (j) Non‑current Assets (or Disposal Groups) Easements secured over properties for the purpose of Classified as Held for Sale road drainage have not been assigned a finite life. Non‑current assets (or disposal groups) held for sale are recognised at the lower of carrying amount (i) Impairment of Assets and fair value less costs to sell and are presented Property, plant and equipment, infrastructure and separately from other assets in the Balance Sheet. intangible assets are tested for any indication of Assets classified as held for sale are not depreciated or impairment at each reporting date. Where there is amortised. an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less (k) Leases than the carrying amount, the asset is written down Main Roads has entered into a number of operating to the recoverable amount and an impairment loss is lease arrangements for rent of land and buildings, recognised. As Main Roads is a not‑for‑profit entity, vehicles and office equipment, where the lessors unless an asset has been identified as a surplus asset, the effectively retain all the risks and benefits incidental to recoverable amount is the higher of an asset’s fair value ownership of the items held under the operating leases. less costs to sell and depreciated replacement cost. Equal instalments of the lease payments are charged to the Income Statement over the lease term, as this is The risk of impairment is generally limited to representative of the pattern of benefits derived from the circumstances where an asset’s depreciation is materially leased property. understated or where the replacement cost is falling. The exception is road earthworks when the alignment (l) Financial Instruments of a section of road may be assessed to be deficient Main Roads has two categories of financial instruments: and the useful life of the asset is revised from infinite to • Loans and receivables (includes cash and term finite. Each relevant class of assets is reviewed annually deposits); and to verify that the accumulated depreciation/amortisation • Non‑trading financial liabilities. reflects the level of consumption or expiration of asset’s future economic benefits and to evaluate any impairment Initial recognition and measurement is at fair value. risk from falling replacement costs. Usually the transaction cost or face value is equivalent to fair value and subsequent measurement is at Intangible assets with an indefinite useful life and amortised cost using the effective interest method. intangible assets not yet available for use are tested for impairment at each reporting date irrespective of Short-term receivables and payables with no stated whether there is any indication of impairment. interest rate are measured at transaction cost/face value if the effect of discounting is immaterial. The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and Material longer term debts free of interest are initially the present value of future cash flows expected to measured at fair value and then amortised cost using be derived from the asset. Surplus assets carried at the effective interest rate method. fair value have no risk of material impairment. Surplus assets at cost are tested for indications of impairments

at each reporting date.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

(m) Cash and Cash Equivalents on an ongoing basis and any receivables identified For the purpose of the Statement of Cash Flows, as uncollectible are written‑off. The provision for cash and cash equivalent (and restricted cash and uncollectible amounts (doubtful debts) is raised when cash equivalent) assets comprise cash on hand and collectability is no longer probable. The carrying amount short-term deposits with original maturities of three is equivalent to fair value as it is due for settlement months or less that are readily convertible to a known within 30 days. See note 2(l) ‘Financial Instruments’ and amount of cash and which are subject to insignificant note 25 ‘Receivables’. risk of changes in value, and bank overdrafts. (r) Payables (n) Accrued Salaries Payables are recognised at the amounts payable when Accrued salaries represent the amount due to staff but Main Roads becomes obliged to make future payments unpaid at the end of the financial year, as the end of the as a result of a purchase of assets or services. The last pay period for that financial year does not coincide carrying amount is equivalent to fair value, as they are with the end of the financial year. Accrued salaries generally settled within 30 days. See note 2(l) ‘Financial are settled within a few days of the financial year end. Instruments’ and note 34 ‘Payables’. Main Roads considers the carrying amount of accrued salaries to be equivalent to the net fair value. (s) Borrowings All loans are initially recognised at cost, being the (o) Amounts Receivable for Services fair value of the net proceeds received. Subsequent (Holding Account) measurement is at amortised cost using the effective Main Roads receives funding on an accrual basis that interest rate method. See note 2(l) ‘Financial recognises the full annual cash and non‑cash cost of Instruments’ and note 35 ‘Borrowings’. services. The appropriations are paid partly in cash and partly as an asset (Holding Account receivable) that (t) Provisions is accessible on the emergence of the cash funding Provisions are liabilities of uncertain timing and amount requirement to cover items such as leave entitlements and are recognised where there is a present legal, and asset replacement. equitable or constructive obligation as a result of a past event and when the outflow of economic benefits is See also note 22 ‘Income from State Government’ and probable and can be measured reliably. Provisions note 26 ’Amounts receivable for services’. are reviewed at each balance sheet reporting date. See note 35 ‘Provisions’. (p) Inventories Inventories held for distribution (for roadworks) are Provisions – Employee Benefits measured at the lower of cost and current replacement Annual Leave and Long Service Leave cost. Costs are assigned on a standard, average or last The liability for annual and long service leave expected known cost basis. to be settled within 12 months after the end of the Inventories not held for distribution are valued at the reporting date is recognised and measured at the lower of cost and net realisable value. undiscounted amounts expected to be paid when the liabilities are settled. Annual and long service leave See note 27 ‘Inventories’. expected to be settled more than 12 months after the end of the reporting date is measured at the present (q) Receivables value of amounts expected to be paid when the liabilities Receivables are recognised and carried at original are settled. Leave liabilities are in respect of services invoice amount less any provision for uncollectible

provided by employees up to the reporting date.

amounts. The collectability of receivables is reviewed

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

When assessing expected future payments Employees who are not members of either the Pension consideration is given to expected future wage and or the GSS Schemes become non‑contributory salary levels including non‑salary components such as members of the West State Superannuation (WSS) employer superannuation contributions. In addition, the Scheme, an accumulation scheme. Main Roads long service leave liability also considers the experience makes concurrent contributions to GESB on behalf of employee departures and periods of service. of employees in compliance with the Commonwealth Government’s Superannuation Guarantee The expected future payments are discounted (Administration) Act 1992. The WSS Scheme is a using market yields at the reporting date on national defined contribution scheme as these contributions government bonds with terms to maturity that match, as extinguish all liabilities in respect of the WSS Scheme. closely as possible, the estimated future cash outflows. The GESB makes all benefit payments and is recouped All annual leave and unconditional long service by the Treasurer for the employer share in respect of the leave provisions are classified as current liabilities as Pension and GSS Scheme transfer benefits. Main Roads does not have an unconditional right to defer settlement of the liability for at least 12 months See also note 2(u) ‘Superannuation expense’. after the reporting date. (u) Superannuation Expense Public Service Holidays The following elements are included in calculating a Employees are entitled to take two days paid leave in superannuation expense: lieu of repealed public service holidays. The unpaid (a) Defined benefit plans – Change in the unfunded benefit at the reporting date is recognised at the employer’s liability assumed by the Treasurer in nominal amount expected to be paid when the liabilities respect of current employees who are members of are settled. the Pension Scheme and current employees who Superannuation accrued a benefit on transfer from that Scheme to The Government Employees Superannuation the Gold State Superannuation Scheme (GSS); and Board (GESB) administers the following superannuation (b) Defined contribution plans – Employer contributions schemes: paid to the GSS and the West State Superannuation Employees may contribute to the Pension Scheme, Scheme (WSS). a defined benefit pension scheme now closed to Defined benefit plans – in order to reflect the true cost new members or the Gold State Superannuation of services, the movements in the liabilities in respect Scheme (GSS), a defined benefit lump sum scheme of the Pension Scheme and the GSS transfer benefits also closed to new members. are recognised as expenses. As these liabilities are Main Roads has no liabilities under the Pension or assumed by the Treasurer (refer note 2(u)(i)), a revenue the GSS Schemes. The liabilities for the unfunded titled ‘Liabilities assumed by the Treasurer’ equivalent Pension Scheme and the unfunded GSS Scheme to the expense is recognised under Income from State transfer benefits due to members who transferred from Government in the Income Statement (See note 22 the Pension Scheme, are assumed by the Treasurer. ‘Income from State Government’). All other GSS Scheme obligations are funded by The superannuation expense does not include payment concurrent contributions made by Main Roads to of pensions to retirees, as this does not constitute part the GESB. The concurrently funded part of the GSS of the cost of services provided in the current year. Scheme is a defined contribution scheme as these contributions extinguish all liabilities in respect of the

concurrently funded GSS Scheme obligations.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

(v) Resources Received Free of Charge or for 3. Financial Risk Management Nominal Cost Objectives and Policies Resources received free of charge or for nominal Financial instruments held by Main Roads are cash cost that can be reliably measured are recognised as and cash equivalents, loans, Treasurer’s advances and revenues and as assets or expenses as appropriate at receivables and payables. Main Road’s has limited fair value. exposure to financial risks. Main Road’s overall risk management program focuses on managing the risks (w) Comparative Figures identified below: Comparative figures have been restated on the AIFRS Credit Risk basis except for financial instruments which have Main Roads minimises its exposure to credit risk been prepared under the previous AGAAP Australian through a policy that requires either payment in advance Accounting Standard AAS 33. The transition date to or a suitable guarantee. The security arrangements AIFRS for financial instruments will be 1 July 2005 may not be applied local government, Commonwealth in accordance with AASB 1 paragraph 36A and Government or State Government agencies. Treasurer’s Instruction 1106. In addition, Main Roads monitors receivables balances (x) Insurance on an ongoing basis with the result that its exposure Main Roads regularly reviews its insurance to bad debts is minimal. There are no significant arrangements including areas where self-insurance is concentrations of credit risk. deemed to be economically justified. Currently, these Liquidity Risk self-insurance areas are: Main Roads has appropriate procedures to manage • roads, bridges and road furniture; and cash flows, including drawdowns of appropriations by • heavy construction plant (except for automatic third monitoring forecast cash flows to ensure that sufficient party personal injury cover in cases where the plant funds are available to meet its commitments. is licensed for road use). Cash Flow Interest Rate Risk (y) Property Liabilities and Commitments Main Roads exposure to market risk for changes in A liability has been recognised in respect of properties interest rates relate to the long-term debt obligations. for which a Notice of Resumption under the Land Main Road’s borrowings are all obtained through the Administration Act 1997 has been issued and formal Western Australian Treasury Corporation (WATC) and possession has taken place but where settlement has are at fixed rates with varying maturities. The risk is not been achieved at reporting date. Liabilities in such managed by WATC through portfolio diversification and circumstances have been based on valuations and variation in maturity dates. Otherwise, Main Roads is include costs of acquisition. This liability is included in not exposed to interest rate risk because cash and cash Payables. See Note 34. equivalents and restricted cash are non-interest bearing. Hedging Main Roads has not entered into any financial transactions for the purpose of hedging its exposure to

commodity prices, foreign currencies or interest rates.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

4. Judgements Made by Management in Depreciated Replacement Cost of applying Accounting Policies Infrastructure Assets A grant of $323 million was received in June 2006 Infrastructure assets, other than land within road from the Commonwealth Government under the reserves, are measured at current depreciated AusLink (National Land Transport) Act 2005 as part of replacement cost by reference to the cost of new an Accelerated Upgrade Package for approved road assets. The replacement cost is reviewed every three projects on the Auslink National Road Network. years on the basis of actual contract construction rates The funds are to be spent over the period 2006-2007 and adjusted in the intervening years by applying the to 2010-2011. Road and Bridge Construction Index published by the Despite the fact that the funds have been paid in Bureau of Statistics. advance of the works commencing, the grant has been 6. Disclosure of changes in Accounting recognised as income in accordance with paragraph Policy and Estimates (c) of AASB 1004 ‘Contributions’ on the basis that Main Initial application of an Australian Accounting Roads has obtained control of the contribution. Standard 5. Key Sources of Estimation Paragraph 19 of AASB 116 ‘Property, Plant and Uncertainty Equipment’ provides that administration and general The key assumptions made concerning the future, overhead costs are not to be included in the cost of and other key sources of estimation uncertainty at the an item of property, plant and equipment. This has reporting date that have a significant risk of causing a reduced the overheads otherwise applied to material adjustment to the carrying amounts of assets infrastructure capital additions. The impact in and liabilities within the next financial year include: 2005-2006 was to reduce additions from $320 million to $305 million. No adjustment has been made for prior Provisions periods as the impact has not been quantified but is The liability for long service leave is measured at the deemed likely to be immaterial. present value of amounts expected to be paid when the liabilities are settled. The assessment of future payments Voluntary changes in Accounting Policy is based on estimated retention rates and remuneration The capitalisation threshold for property, plant and levels and discounted using current market yields on equipment was raised from $1,000 to $5,000. This national government bonds with maturity dates that change resulted in the write-off of assets with a carrying match the estimated future cash outflows. value of $253,218. The impact on future reporting periods is immaterial.

Changes in Accounting Estimates There have been no changes in accounting estimate

that will impact the current or future periods.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

7. Employee benefits expense 2006 2005 $’000 $’000

Wages and salaries 28,031 23,055 Annual Leave 3,176 2,581 Long service leave 1,322 1,496 32,529 27,132 Superannuation – defined contribution plans 4,532 4,158 Superannuation – defined benefit plans 1,195 688 38,256 31,978

Superannuation – defined contribution plans include West State and Gold State (concurrently funded)

Superannuation – defined benefit plans include Pension scheme and Gold State (pre-transfer benefit)

An equivalent notional income is also recognised for the defined benefits plan expense (See note 22 ‘Income from State Government’).

8. Supplies and Services 2006 2005 $’000 $’000

Contractors and consultants 235,919 257,314 Materials 633 1,623 Plant hire charges 1,254 608 Fringe benefits tax 330 176 Postage, stationery and reprographics 655 1,196 Telecommunications 2,949 2,683 Building maintenance and equipment 5,103 1,700 Electricity and gas 2,458 4,296 Contributions 939 1,786 Legal costs 94 652 Advertising 272 173 Rates and Taxes 262 310 Insurance 1,572 1,890 Other 8,342 2,016 260,782 276,483

9. Grants and subsidies Grants and subsidies to local government 110,636 87,816

110,636 87,816

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

10. Depreciation expense – Infrastructure Assets 2006 2005 $’000 $’000

Roads – Earthworks 2,935 2,718 Roads – Pavements, drainage and seal 115,848 104,313 Bridges 17,914 18,485 Road Furniture 4,730 4,680 Total depreciation 141,427 130,196

11. Depreciation and amortisation expense – Other non current assets Depreciation Plant, equipment and vehicles 2,642 2,298 Buildings 1,444 961 Total depreciation 4,086 3,259

Amortisation Intangible assets 246 239 Total amortisation 246 239

Total Depreciation and Amortisation 4,332 3,498 Less: Depreciation capitalised to infrastructure (1,492) (1,948)

Depreciation and amortisation as per Income Statement 2,840 1,550

12. Finance costs Interest paid 7,978 10,427 7,978 10,427

13. Infrastructure Assets Retired/Replaced Earthworks and pavements 6,256 9,906 Bridges 397 328 Road furniture – 129 Work in progress – 571 6,653 10,934

Infrastructure assets replaced or retired during the year have been expensed at their carrying amount. 14. Capital User Charge Capital user charge 55,084 33,716 55,084 33,716

The Government applies a levy for the use of its capital for the delivery of services. It is applied at 8% per annum on the net assets of the Authority, excluding exempt

assets, and is paid to the Department of Treasury and Finance quarterly.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

15. Commonwealth grants 2006 2005 $’000 $’000

AusLink (National Land Transport) Act 2005 431,048 103,095 Interstate Road Transport Act 1985 1,987 1,713 433,035 104,808

Auslink (National Land Transport) Act 2005 Grants are received from the Commonwealth Government through the AusLink (National Land Transport) Act 2005. This funding is used for the construction and maintenance of the Auslink national road network and for the Road Safety Blackspot Program.

Interstate Road Transport Act 1985 A charge is levied under the Act on interstate commercial vehicles that are exempt from State charges and the revenue raised is distributed in accordance with the damage attributed to interstate vehicles in each State.

16. Contributions to roadworks 2006 2005 $’000 $’000

Contributions to roadworks 7,525 11,283 7,525 11,283

This revenue represents contributions by both public and private bodies towards the cost of works performed on highways and main roads. See note 2(p) ‘Inventories’ and note 27 ‘Inventories’

17. Net gain/(loss) on disposal of non‑current assets Costs of Disposal of Non-Current Assets Land acquired for roadworks 18,106 5,669 Land and buildings 337 557 Property, plant and equipment 17 92 18,460 6,318 Proceeds from Disposal of Non-Current Assets Land acquired for roadworks 19,953 8,249 Land and buildings 897 452 Property, plant and equipment 90 44 20,940 8,745 Net Gain/(Loss) Land acquired for roadworks 1,847 2,580 Land and buildings 561 (105) Property, plant and equipment 72 (48)

2,480 2,427

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

18. Grants from other bodies 2006 2005 $’000 $’000

Grants from local government authorities: Transfer traffic control signals at fair value 154 160 Transfer roads at fair value 2,666 4,391 Transfer street lighting at fair value – 104 Grants from developers: Transfer traffic control signals at fair value – 80 Transfer street lighting at fair value – 40 2,820 4,775

19. Sale of goods and services Supply of goods and services 73,055 95,384 73,055 95,384

Represents works undertaken for other public and private bodies services and includes the recovery of expenditure from the Commonwealth Department of Transport and Regional Services under service delivery arrangements with the Shires of Christmas Island and Cocos (Keeling) Island. The amounts expended or set aside for expenditure during 2005-2006 are summarised below:

2006 2005 $’000 $’000

Amount brought forward for recovery 17 3 Amount received during the year (89) (65) (72) (62) Expenditure during the year 76 79 Amount carried forward for recovery 4 17

20. Capitalisation of Road Infrastructure Assets Principal shared paths – 27,471 Bridges – 614 – 28,085

Expenditure on shared paths and bridge assets expensed in previous reporting periods was capitalised during 2004-2005. See also note 2(j) ‘Non-current assets (or disposal groups) classified as held for sale’ and note 29 ‘Non-current assets held for sale’ and note 30 ‘Property, plant and equipment’.

21. Other Revenue 2006 2005 $’000 $’000

Rents 1,987 2,428 Other 1,555 1,410

3,542 3,838

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

22. Income from State Government 2006 2005 $’000 $’000

Service appropriation Motor vehicle licence fees 255,889 277,935 Untied funds 225,548 205,303 Motor vehicle permit fees 3,027 2,969 484,464 486,207 Other funds received from State Government Road Trauma Trust Fund – 500 Natural Disaster Funding 5,062 8,790 5,062 9,290 Liabilities assumed by the Treasurer Superannuation 1,696 906 1,696 906 Resources received free of charge Determined on the basis of the following estimates provided by agencies: Department of Land Information 364 643 364 643 491,586 497,046

Service appropriations Service appropriations are accrual amounts reflecting the net cost of services delivered. The appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year.

Motor vehicle licence fees Motor vehicle licence fees for cars and light vehicles are raised under the Road Traffic Act, and fees for heavy vehicles are raised under the Road Transport Reform (Heavy Vehicles Registration) Act. The total licence fees collected in 2005-2006 was $337.262 million. An amount of $255.889 million was received as a service appropriation and the balance of $81.373 million appropriated as a capital contribution by owners and included under ‘Contributed Equity’ in the Balance Sheet.

Untied funds Untied funds are appropriations from the Consolidated Fund. The total appropriation from the Consolidated Fund in 2005-2006 was $349.961 million. This includes a service appropriation of $225.548 million and a capital contribution of $124.413 million. The service appropriation includes a cash component of $80.012 million and a $145.536 million non cash component.

Motor vehicle permit fees Motor vehicle permit fees are collected under the Road Traffic Act for the issue of permit fees for vehicles that are oversize, special purpose or carry oversize or extra loads.

Road Trauma Trust Fund

Funds provided by the Office of Road Safety from the Road Trauma Trust Fund for State Blackspot projects.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Natural Disaster Funding Funds provided by the Fire and Emergency Services Authority for the re-instatement of roads damaged by declared natural disasters.

Liabilities assumed by the Treasurer The assumption of the superannuation liability by the Treasurer is a notional income to match the notional superannuation expense reported in respect of current employees who are members of the Pension Scheme and current employees who have a transfer benefit entitlement under the Gold State Superannuation Scheme (The notional superannuation expense is disclosed at note 7 ‘Employee Benefits Expense’).

Resources received free of charge Where assets or services have been received free of charge or for nominal cost, Main Roads recognises revenues (except where the contributions of assets or services are in the nature of contributions by owners in which case Main Roads shall make a direct adjustment to equity) equivalent to the fair value of the assets and/or the fair value of those services that can be reliably determined and which would have been purchased if not donated, and those fair values shall be recognised as assets or expenses, as applicable.

23. Cash and cash equivalents 2006 2005 $’000 $’000

Cash at Bank 388,916 35,919 Cash on hand 13 12 388,929 35,931

24. Restricted cash and cash equivalents Current: Contractors’ Deposits 756 854 756 854

Contractors’ deposits – amounts withheld from contractors payments and deposited in a Trust Account pending satisfactory completion of works.

25. Receivables Current: Trade debtors 5,844 4,668 Allowance for impairment of receivables (200) (213) 5,644 4,455

Trade debtors – work in progress 5,327 12,421 GST Refund due from Australian Taxation Office 6,542 5,276 Other Debtors 789 146 18,302 22,298

Non-current Trade debtors 968 186 968 186

See also note 2(q) ‘Receivables’ and note 43 ‘Financial instruments’.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

26. Amounts receivable for services 2006 2005 $’000 $’000

Current 27,917 23,153 Non-current 663,994 546,549 691,911 569,702

Represents the non-cash component of service appropriations (see note 2(o) ‘Amounts receivable for services (Holding Account)’). It is restricted in that it can only be used for asset replacement or payment of leave liability. 27. Inventories 2006 2005 $’000 $’000

Current: Inventories held for distribution: Construction and maintenance materials 864 1,132 General stores – 2 Total Current 864 1,134

Non-Current: Construction and maintenance materials 6,935 6,935 Total Non-Current 6,935 6,935

See also note 2(p) ‘Inventories’. 28. Prepayments 2006 2005 $’000 $’000

Prepayments 1,936 4,729 1,936 4,729

Prepayments in 2005 included $3.071 million in insurance premiums for road construction contracts to be awarded in 2005-2006.

Prepayments in 2006 included an amount of $1.221 million paid for road network survey services to be completed by

the Australian Road Research Board during 2006-2007.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

29. Non‑current assets classified as held for sale 2006 2005 $’000 $’000

Opening balance Assets reclassified as held for sale Freehold land and buildings 19,246 33,874 Assets Reclassified as held for sale Freehold land and buildings 22,191 6,728 Less assets removed from current disposal program Freehold land and buildings (4,456) (14,882) Less assets sold Freehold land and buildings (18,358) (6,218) Less Grants Freehold land and buildings (77) – Write down of assets from carrying value to fair value less selling costs Freehold land and buildings (2,004) (256) Closing balance Freehold land and buildings 16,542 19,246

Note that all assets in the closing balance are expected to be sold within the next reporting period.

See also note 2(j) ‘Non-current assets (or disposal group) classified as held for sale’ and note 17 ‘Net gain/(loss) on

disposal of non‑current assets’.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

30. Other Non Current Assets 2006 2005 $’000 $’000

Property, plant and equipment Freehold land At fair value 37,830 33,929 37,830 33,929 Buildings At fair value 46,900 31,122 46,900 31,122 Plant and Equipment At Cost 24,280 25,778 Accumulated depreciation (17,604) (18,869) 6,676 6,909 Total Property, Plant and Equipment 91,406 71,960

Surplus Assets At fair value 50,410 66,552 50,410 66,552 Land Acquired for Roadworks At fair value 97,111 92,307 97,111 92,307 238,927 230,819

Freehold land and buildings were revalued during the year ended 30 June 2006 by the Department of Land Information (Valuation Services). The effective date of the valuation is 1 July 2005. The fair value of land $37,830,000 (2005: $33,929,000) and buildings $46,900,000 (2005: $31,122,000) was determined by reference to recent market transactions.

When buildings are revalued, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount.

Refer Note 2(g) ‘Property, Plant and Equipment and Infrastructure’.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Reconciliations of the carrying amounts of property, plant, equipment and vehicles at the beginning and end of the reporting period are set out below.

Freehold Buildings Plant and Sub Total Surplus Land land Equipment Property Assets Acquired Plant and for Equipment Roadworks Total $’000 $’000 $’000 $’000 $’000 $’000 $’000

2006 Carrying amount at start of year 33,929 31,122 6,909 71,960 66,552 92,307 230,819 Additions 356 5,373 2,653 8,382 – 1,051 9,433 Disposals – (85) (251) (336) – – (336) Classified as held for sale (483) (781) – (1,264) (14,618) (1,853) (17,735) Transfers (6,360) 9,510 (22) 3,128 – (3,150) (22) Transfer to Infrastructure – – – – – (2,198) (2,198) Transfer to/from Operating (Prior Year Adjustments) 17 (54) 29 (8) – 471 463 Depreciation – (1,444) (2,642) (4,086) – – (4,086) Revaluation increments/ (decrements) 10,371 3,259 – 13,630 (1,524) 10,483 22,589 Carrying amount at end of year 37,830 46,900 6,676 91,406 50,410 97,111 238,927

Freehold Buildings Plant and Sub Total Surplus Land land Equipment Property Assets Acquired Plant and for Equipment Roadworks Total $’000 $’000 $’000 $’000 $’000 $’000 $’000

2005 Carrying amount at start of year 31,126 22,957 6,582 60,665 47,908 93,340 201,913 Additions – 8,272 2,724 10,996 – 543 11,539 Disposals – (8) (92) (100) – – (100) Grants – – – – (1,622) – (1,622) Classified as held for sale (51) 73 – 22 11,588 (3,457) 8,153 Transfers 82 (108) 3 (23) – 23 – Transfer to Infrastructure – – – – – (5,180) (5,180) Transfer (to)/from Operating (Prior Year Adjustments) – 1 (10) (9) – (202) (211) Depreciation – (961) (2,298) (3,259) – – (3,259) Revaluation increments 2,772 896 – 3,668 8,678 7,240 19,586 Carrying amount at

end of year 33,929 31,122 6,909 71,960 66,552 92,307 230,819

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

31. Infrastructure 2006 2005 $’000 $’000

At fair value 27,680,013 24,841,120 Accumulated depreciation (6,236,622) (5,638,471) 21,443,391 19,202,649

The value of roads and principal shared paths (earthworks, drainage, pavements and seals), bridges and road furniture at 30 June 2006 is based on the current depreciated replacement cost determined at 30 June 2005 by Main Roads and a cost index (ABS Road and Bridge Construction Cost Index) has been applied to ensure asset values do not materially differ from fair value.

As fair value is measured by reference to the cost of a new asset, when infrastructure is revalued, the accumulated depreciation is restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount.

Land within road reserves was revalued at 30 June 2005 using values supplied by the Department of Land Information (Valuation Services).

A reconciliation of the carrying amount of infrastructure at the beginning and end of the reporting period is set out below.

2006 2005 $’000 $’000

Reconciliation Carrying amount at start of year 19,202,649 16,304,946 Additions 305,551 303,674 Capital contribution – assets transferred from other government agencies 14,382 – Land transferred from Land Acquired for Roadworks 2,198 5,180 Revaluation increments 2,098,001 2,700,426 Recognition of Principal Shared Paths – 27,471 Local roads reclassified as highways and main roads 2,820 4,775 Infrastructure Assets Retired (6,653) (10,934) Depreciation expense (141,427) (130,196) Disposals – highways and main roads reclassified as local roads (33,649) (3,368) Transfers to/from Operating (Prior Year Adjustments) (481) 675

Carrying amount at end of year 21,443,391 19,202,649

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

32. Intangible assets 2006 2005 $’000 $’000

Computer software and drainage easements At cost 2,253 2,108 Accumulated amortisation (1,571) (1,387) 682 731 A reconciliation of the carrying amount of intangible assets at the beginning and end of the reporting period is set out below. Computer software Carrying amount at start of year 722 719 Additions 195 242 Disposals (20) – Transfers 22 – Amortisation expense (246) (239) Carrying amount at end of year 673 722

Drainage easements Carrying amount at start of year 9 9 Additions – – Disposals – – Transfers – – Amortisation expense – – Carrying amount at end of year 9 9 Total Intangible Assets 682 731

33. Impairment of assets There were no indications of impairment of property, plant and equipment, infrastructure and intangible assets at 30 June 2006.

Main Roads held no goodwill during the reporting period and at reporting date there were no intangible assets not yet available for use.

All surplus assets at 30 June 2006 have been classified as assets held for sale or written‑off.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

34. Payables 2006 2005 $’000 $’000

Current Trade creditors 22,879 21,090 Major Contracts and Services 59,874 55,269 Property Acquisitions 27,710 8,668 Contractors Retention 756 854 Funds in Advance 7,037 14,545 Performance Bonds/Surety 1,270 572 119,526 100,998

Non-current Major Contracts and Services 449 80 – – 449 80

See also note 2(r) ‘Payables’ and note 43 ‘Financial instruments’. 35. Borrowings Current Western Australian Treasury Corporation Loans 35,730 35,730 35,730 35,730

Non-current Western Australian Treasury Corporation Loans 75,372 111,102 75,372 111,102

36. Provisions Current Employee benefits provision Annual leave 11,208 10,141 Long service leave 10,370 9,522 21,578 19,663 Non-current Employee benefits provision Long service leave 4,320 3,614 4,320 3,614 25,898 23,277

Long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after reporting date.

The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation premiums. The provision is the present value of expected future payments. The associated

expense, apart from the unwinding of the discount (finance cost), is included at note 7.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

37. Equity Equity represents the residual interest in the net assets of the Authority. The Government holds the equity interest in Main Roads on behalf of the community. The asset revaluation reserve represents that portion of equity resulting from the revaluation of non-current assets.

2006 2005 $’000 $’000

Contributed equity Balance at start of year 824,211 641,355

Contributions by owners Capital contribution 205,786 182,856

Transfer of net assets from other agencies: – transfer of bridges by Public Transport Authority 12,772 – – transfer of land for road reserve by Western Australian Planning Commission 1,610 – Balance at end of year 1,044,379 824,211

Reserves Asset revaluation reserve: Balance at start of year 9,606,724 6,886,969 Net revaluation increments/(decrements): Earthworks, Drainage, Pavements and Seals 586,868 789,756 Bridges 109,048 (72,615) Land within Road Reserves 1,395,075 1,980,722 Road Furniture 7,009 2,564 Land and Buildings 20,585 19,328 Balance at end of year 11,725,309 9,606,724

Accumulated surplus (Retained Earnings)

Balance at start of year 9,393,092 9,228,096 Result for the period 390,388 164,996

Balance at end of year 9,783,480 9,393,092

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

38. Notes to the Statement of Cash Flows Reconciliation of cash Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Balance Sheet as follows:

2006 2005 $’000 $’000

Cash and cash equivalents 388,929 35,931 Restricted cash and cash equivalents (refer to note 24 ‘Restricted cash and cash equivalents’) 756 854 389,685 36,785

Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities Net cost of services (101,199) (332,050) Non-cash items: Depreciation expense – Infrastructure 141,427 130,196 Depreciation and Amortisation – other Fixed Assets 2,840 1,550 Grants to Other Bodies 33,727 4,990 Grants Received from Other Bodies (2,567) (4,775) Resources received free of charge (note 22) 364 642 Liabilities Assumed by Treasurer 1,696 906 Decrease in Provision for impairment losses (13) (2) Non-current assets reclassified(to)/from operating 18 (466) Recognition of principal shared paths – (27,471) Infrastructure assets retired/replaced 6,653 10,934

Adjustment for other non-cash items Net (gain)/loss on sale of property, plant and equipment (note 17) – Land Acquired for Roadworks (1,847) (2,580) – In Service Land and Buildings (561) 105 – Property Plant and Equipment (72) 48 (Increase)/decrease in assets: – Receivables 6,635 (7,395) – Inventories 270 745 Increase/(decrease) in liabilities: – Payables (672) 7,427 – Employee Benefits 2,622 4,261 Net GST payments (46,195) (48,578) Change in GST in receivables/payables 44,928 48,535

Net cash provided by/(used in) operating activities 88,055 (212,978)

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

39. Commitments 2006 2005 $’000 $’000

Capital expenditure commitments:

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows: Within 1 year 148,291 144,403 Later than 1 year and not later than 5 years 67,441 15,625 215,732 160,028

Lease commitments:

Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities are payable: Within 1 year 2,276 2,048 Later than 1 year and not later than 5 years 1,118 904 3,394 2,952

Representing: Non-cancellable operating leases 3,394 2,952 3,394 2,952

Other expenditure commitments predominantly comprise maintenance commitments for road infrastructure assets contracted for at the reporting date but not recognised as liabilities, are payable as follows: Within 1 year 95,794 95,312 Later than 1 year and not later than 5 years 250,133 324,911 Later than 5 years 264 15,911 346,191 436,134

These commitments are all inclusive of GST.

40. Contingent liabilities In addition to the liabilities included in the financial statements, there are the following contingent liabilities: Contract Claims in Dispute 16,203 7,955 Claims have been submitted by contractors in relation to services provided under roadwork contracts. The contingent liability is the difference between the amount of the claim and the liability estimated by Main Roads based on legal advice.

Resumption Claims in Dispute 38,271 42,200 Claims have been lodged by owners of property acquired for road construction purposes. The contingent liability is the difference between the owner’s claim and the estimated settlement price determined by Main Roads in accordance with an independent valuation.

54,474 50,155

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

41. Events after the balance sheet date There were no events occurring after reporting date that have any financial effect on the results reported in these financial statements.

42. Explanatory statement Significant variances between estimated and actual result for 2006

2006 2006 Estimate Actual Variation $’000 $’000 $’000

EXPENDITURE Employee Benefits 66,700 72,575 5,875 Superannuation 6,900 8,121 1,221 Grants, Subsidies and Transfers 58,693 80,350 21,657 Supplies and Services 539,430 485,428 (54,002) Accommodation 10,500 11,507 1,007 Infrastructure Assets Retired/Replaced 25,039 6,653 (18,386) Changes in Equity – Transfer of Assets 10,200 33,727 23,527 Other 17,107 22,026 4,919

REVENUE Grants and Subsidies 138,832 438,461 299,629 User Charges and Fees 75,448 80,852 5,404 Changes in Equity – Transfer of Assets 109,200 – (109,200) Roadworks Capitalised 349,738 305,561 (44,177) EXPENDITURE Employee Benefits The major reasons for the variance has been an increase in FTE’s as part of a recruitment drive in youth employment, which is part of the 2K7 Strategy for Building and Expanding Capability and an increase in project /contract management engineering skills through two recruitments drives through ETM/APESMA across Australia and New Zealand.

Superannuation This increase reflects the growth in staff numbers and an increase in the amount charged by the Department of Treasury and Finance for the unfunded Gold State Superannuation fund and the Pension Scheme.

Grants, Subsidies and Transfers An adjustment to the budget in February 2006 to increase Local Government Grants and decrease Services and Contracts (works to be completed by Main Roads) was incorrect.

Supplies and Services The decrease was due to delays in roadwork projects over and above the amounts allowed for in the revised out-turn. The major projects included the Albany Ring Road, Mitchell Freeway and various projects on Great Eastern Highway

and Great Northern Highway.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Accommodation Expenditure amounting to $2.898M for services and contracts relating to property services are now coded to Building Maintenance rather than being incorporated into Supplies and Services. This format was introduced during the year to accommodate Shared Services.

Infrastructure Assets Retired/Replaced The number and size of the re-alignments completed in 2005/06 were less than anticipated.

Changes in Equity – Transfer of Assets A transfer of land to Local Government for Boundary Road, Cockburn amounting to $27.961M was not included in the budget whereas the transfer associated with the Great Eastern Bypass amounting to $5.5M was not completed.

Other The increase is attributed to higher legal costs and insurance premiums for road projects. Legal costs have increased due to contract claims and development of contract alliances. Insurance costs are higher as a result of the Principal Controlled Insurance Program (PCIP) introduced to cover public liability and contract works insurance for road construction contracts. This insurance was previously arranged by contractors and the higher insurance premiums should be offset by a reduction in contract and services costs.

REVENUE Grants and Subsidies The Federal Budget included a new funding source ‘Accelerated Upgrade Package’ as part of the Auslink National Roads arrangements. The outcome was the receipt of $323 million just prior to end of the financial year.

Unbudgeted funds were received from the Fire and Emergency Services Authority under the Natural Disaster Relief Arrangements.

There was a decrease in funding from the Commonwealth for National Highways construction and preservation due to delays in some projects on the Great Northern Highway and Great Eastern Highway.

User Charges and Fees Works undertaken on behalf of other parties were higher than were anticipated. This increase is offset by an equivalent amount of expenditure under supplies and services.

Changes in Equity – Transfer of Assets All assets to be transferred to Local Government have been delayed due to issues associated with titles and other delays. The majority of the transfers are expected to be completed in 2006/07 with one project being delayed until 2007/08.

Roadworks Capitalised The decrease in the amount of roadworks capitalised was due to delays in a number of projects and changes under AIFRS which reduced the amount of overheads that could be capitalised. Major projects with underspends were improvements to the Great Eastern Highway, construction of the Albany Ring Road and the new Leach Highway/

Orrong Road Interchange and extensions to the Mitchell freeway and Goldfields Highway.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Significant variances between actual results for 2005 and 2006

2006 2005 Variance $’000 $’000 $’000

Income Commonwealth grants and contributions 433,035 104,808 328,227 Contribution to roadworks 7,525 10,427 (2,902) Sale of goods and services 73,055 95,834 (22,769) Capitalisation of road infrastructure assets – 28,085 (28,035)

Expenses Employee benefits expense 32,539 27,132 5,407 Supplies and services 260,782 276,482 (15,700) Infrastructure depreciation expense 141,427 130,196 11,231 Depreciation other non-current assets 2,840 1,550 1,290 Capital user charge 55,084 33,716 21,368 Infrastructure assets retired/replaced 6,653 10,934 (4,281) Finance costs 7,977 10,427 (2,450) Superannuation 5,727 4,846 881

Commonwealth grants and contributions In June 2006 the Commonwealth made a grant of $323 million under an Accelerated Upgrade Package for approved road projects on the Auslink National Road Network. The funds are to be spent over the period 2006-2007 to 2010-2011.

Contributions to roadworks The higher revenue in 2004-2005 was due to contributions received in respect of principal shared paths on Tonkin Highway arising from the Corfield Street extension and other principal shared paths on the Kwinana freeway and the Perth-Armadale route.

Sale of goods and services Income was higher in 2004-2005 due to works associated with the Geraldton Southern Transport Corridor project.

Capitalisation of road infrastructure assets Principal shared paths constructed prior to 2004-2005 were recognised for the first time in 2004-2005.

Employee benefits expense The expense has increase because of an increase in employee numbers, the pay increase granted in January 2005 and a reduction in the salaries allocated to capital works.

Supplies and services The variance is due to a reduction in the contractors and consultants providing services for recurrent activities in the financial year.

Infrastructure depreciation expense The increase in depreciation is the result of the increase in the carrying value of assets as a result of the revaluation at 30 June 2005 and the additions and improvements to the network in 2004-2005 and 2005-2006.

Depreciation of other non-current assets Depreciation has increased as result of the revaluation of buildings at 30 June 2005 and asset additions, including the

construction of new regional offices.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Capital user charge The variance is due to the expansion of the asset base during the financial year. In particular, the increase in the amounts receivable for services which varies in line with the depreciation expense for infrastructure and other non-current assets.

Finance costs Borrowings costs have continued to decline as result of the accelerated repayment of the loan principal.

Superannuation The increase in the expense attributed to an increase in the liability for current members of pension scheme and employees who accrued a benefit on transfer from that scheme to the Gold State superannuation scheme.

43. Financial instruments Financial instruments held by Main Roads are cash and cash equivalents, loans, Treasurer’s advances and receivables and payables. Main Roads has limited exposure to financial risks. Main Roads financial risk management objectives and policies are explained in Note 3.

Financial instrument information for the year ended 2005 has been prepared under the previous AGAAP Australian Accounting Standard AAS 33 ‘Presentation and Disclosure of Financial Instruments’. Financial instrument information from 1 July 2005 has been prepared under AASB 132 ‘Financial Instruments: Recognition and Measurement. See also Note 2(w) ‘Comparative Figures’.

Interest rate risk exposure In respect of income-earning assets and interest-bearing liabilities, the following table indicates their effective interest rate at the Balance Sheet date and the periods in which they reprice.

Fixed Interest Rate Maturity Weighted Average Effective Variable More Non- Interest Interest Within 1-2 2- 3 3-4 4-5 than 5 Interest Rate Rate 1 year Years Years Years Years Years Bearing Total 2006 % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Financial Assets Cash and cash equivalents – – – – – – 388,929 388,929 Restricted Cash assets 5.5 756 – – – – – – – 756 Receivables – – – – – – 19,271 19,271 Amounts receivable for services – – – – – – – – 691,911 691,911 756 – – – – – – 1,100,111 1,100,867 Financial Liabilities Payables - - – – – – – – 119,974 119,974 WATC/Bank

Loans 6.0 – 59,811 26,022 6,702 6,059 5,183 7,325 - 111,102

- 59,811 26,022 6,702 6,059 5,183 7,325 119,974 231,076

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Fixed Interest Rate Maturity Weighted Average Effective Variable Less More Non- Interest Interest than 1 1 to 5 than 5 Interest Rate Rate Year Years Years Bearing Total 2005 % $’000 $’000 $’000 $’000 $’000 $’000 Financial Assets Cash and cash equivalents – – – – – 35,931 35,931 Restricted cash assets 5.3 1,134 – – – – 1,134 Receivables – – – – – 22,484 22,484 Amounts receivable for services - - – – – 569,702 569,702 1,134 – – – 628,117 629,251 Financial Liabilities Payables – – – – – 101,079 101,079 WATC/Bank loans 6.2 – 71,158 66,005 9,669 – 146,832 – 71,158 66,005 9,669 101,079 247,911 Fair Values The carrying amount of financial assets and financial liabilities recorded in the financial statements are not materially different from their net fair values.

44. Remuneration of members of the Accountable Authority and senior officers Remuneration of Members of the Accountable Authority The number of members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefits for the financial year, fall within the following bands are:

$ 2006 2005

240,001 – 250,000 – 1 290,001 – 300,000 1 –

The total remuneration of members of the Accountable Authority is: $291K $248K

The superannuation included here represents the superannuation expense incurred by Main Roads in respect of members of the Accountable Authority.

No members of the Accountable Authority are members of the Pension Scheme.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Remuneration of Senior Officers The number of senior officers, other than senior officers reported as members of the Accountable Authority, whose total fees, salaries, superannuation and other benefits for the financial year, fall within the following bands are: $ 2006 2005

140,001 – 150,000 – 2 150,001 – 160,000 2 1 160,001 – 170,000 3 3 170,001 – 180,000 2 – The total remuneration of senior officers is: $1,154K $945K

The superannuation included here represents the superannuation expense incurred by Main Roads in respect of senior officers other than senior officers reported as members of the Accountable Authority.

No senior officers are members of the Pension Scheme.

45. Remuneration of auditor Remuneration payable to the Auditor General for the financial year is as follows:

2006 2005 $’000 $’000

123 111 Auditing the accounts, financial statements and performance indicators 123 111

Expense is included at note 8 ‘Other expenses’.

46. Related Bodies Main Roads controls the following entities. The financial years of the controlled entities are the same as that of the parent entity.

Name of Place of Book value of controlled incorporation Main Roads Contribution to Entity Note /formation Investment % of equity held Surplus 2006 2005 2006 2005 2006 2005 $ $ % % $’000 $’000 Tarolinta Pty Ltd (a) Western 11 11 100 100 – – Australia The Aberdeen Hotel (b) Western 10 10 100 100 – – Unit Trust Australia

(a) Tarolinta Pty Ltd was incorporated on 15 June 1995 as a shelf company owned by Clayton Utz, Barristers & Solicitors. The company consented to act as Trustee of the Aberdeen Unit Trust on 4 January 1996. The shares in Tarolinta Pty Ltd are held in Trust for the Commissioner of Main Roads. Tarolinta Pty Ltd did not trade during the

year ended 30 June 2006 and as at that date had net assets of $11.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

(b) The Aberdeen Hotel Unit Trust (“the Trust”) was settled on 4 January 1996. The Trust was formed to operate the Aberdeen Hotel that Main Roads acquired to enable access for construction of the Graham Farmer Freeway tunnel. It ceased to operate on 11 February 1998. From that date Northbridge Enterprises Pty Ltd leased the property in the hotel and adjacent properties to the east and west from Main Roads. Northbridge Enterprises Pty Ltd has operated the business of the hotel from 12 February 1998. The lease expired in June 2003. Northbridge Enterprises Pty Ltd then operated the business on a month-to-month lease until 12 December 2003, when the property was sold.

Consolidated financial statements have not been prepared as the net assets of controlled entities are immaterial to the results and financial position of Main Roads.

47. Supplementary financial information 2006 2005 $’000 $’000

Write-Offs Bad Debts – Damage to Roads, Bridges and Road Furniture – 2 Fixed Asset Stocktake Discrepancies 10 15

Thefts of Property and Equipment 10 17

« « PREVIOUS CONTENTS NEXT « 134 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 135 4,775 1,550 3,839 4,847 11,283 95,833 28,085 10,934 27,133 10,426 87,815 33,716 104,809 248,624 130,196 276,483 583,100 2004/05

– Total 2,822 7,525 2,840 6,653 3,540 7,977 5,727 73,055 32,529 55,085 433,035 519,977 141,427 260,782 623,656 110,636 2005/06

– – – – –

(1,948) (1,536) 10,934 (40,477) 2004/05 (259,713) (292,740)

– – – – – – – – – – Outputs Roadworks allocated to Capitalised/ 6,653 Expenses not (1,493) (2,395) (3,441) (40,046) 2005/06 (258,178) (298,900)

– – –

801 980

4,391 1,119 4,910 3,220 1,971 6,569 34,610 41,818 82,600 10,411 195,425 223,625 2004/05

– – – for State 442 834 554 06 – Road 2,540 4,788 1,535 1,562 3,313 Development Infrastructure 13,071 29,079 45,686 10,596 121,816 144,444 2005/06

– – – –

2,999 1,000 1,583 3,243 1,985 30,707 35,289 16,525 40,278 10,486 130,196 157,443 361,156 2004/05

– – – Network 05 – Road 1,316 2,041 1,588 1,652 2,924 2,977 Maintenance 10,463 57,299 20,192 150,142 155,151 141,427 193,587 430,457 2005/06

– – – –

384 296 212 188 610 374

9,610 1,071 1,974 10,478 28,093 42,899 10,565 2004/05

– – – – 249 437 312 804 819 04 – Road Use Safety 1,726 9,343 2,683 5,552 Improvements 11,630 48,351 81,307 22,661 2005/06

– – –

593 523

6,888 3,891 1,704 1,043 5,511

14,163 61,223 28,085 95,673 10,754 110,882 119,169 2004/05

– – – e access 337 875 619 423 c 03 – Road i 8,206 3,354 1,140 1,161 7,872 Infrastructure for community 59,984 69,825 82,727 13,336 110,209 rv 2005/06 e

– – – – – S

y 299 261 233 751 460

8,174 8,706 1,577 2,429 b 28,136 53,204 19,590 2004/05

– – – – 229 335 407 287 749 763 Efficiency 2,553 5,174 02 – Road Use Improvements 47,745 74,770 17,379 xpenses 235,997 236,848 2005/06 E

– – – – – – 59

337 669 313 332 898 550

and

2,905

31,426 39,636 75,787 e 2004/05 m

o 8 – – – – 89 c Network 268 837 249 448 312 825 840 01 – Road Operations n 5,699 Management 24,734 48,734 81,369 f I 2005/06

ices

hedule

f S

Sc .

ost by Outputs for amounts in $’000) 2004/05 and Income Statement 48 C Expenses Employee benefits Supplies and Depreciation and Amortisation Depreciation other Assets Infrastructure Retired/Replaced Cost of Total Services Income Revenue Contributions to Commonwealth Grants and Contributions Sale of Goods and Services Capitalisation of Road Infrastructure Grants from Revenue Total Other bodies Assets Services Roadworks expense 2005/06 (All Expenses non-current assets Other Revenue Finance Costs Superannuation Grants and Subsidies Capital User Charge

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– – Total 364 5,062 2,480 2,480 1,696 522,457 484,464 101,199 390,387 491,586 2005/06

` – –

109,884 2004/05 (182,856) (292,740) (182,856)

– – – – – – – `– Outputs Roadworks allocated to Capitalised/ Expenses not 93,655 2005/06 (205,245) (298,900) (205,245)

– –

620 620 164 232

1,917 83,220 (24,719) 140,405 115,686 113,373 2004/05

– – 57 for State 388 388 265 06 – Road Development Infrastructure (8,301) 46,074 30,015 98,370 90,069 59,732 2005/06

–

265 374

7,283 1,001 1,001 5,485 36,290 72,078 383,537 324,866 396,944 2004/05

– Network 169 791 05 – Road 5,062 1,157 1,157 Maintenance 29,423 156,308 342,167 274,149 103,463 377,612 2005/06

–

31 44 500 119 119

1,217 10,597 16,487 32,302 33,519 16,457 2004/05

– – 32 219 150 219 04 – Road Use Safety Improvements 11,849 19,293 69,458 57,305 37,830 (12,153) 2005/06

– –

555 330 123 330

7,957

18,407 26,364 25,599 111,212 2004/05

– – 44 access 296 203 296 03 – Road Infrastructure (3,123) for community 70,121 17,243 40,088 36,965 19,475 2005/06

–

39 55 147 147

8,853 1,507 12,557 44,351 34,272 20,114 (10,079) 2004/05

– – 30 201 137 201 Efficiency 02 – Road Use Improvements 27,094 61,488 34,227 237,049 223,767 2005/06 (162,279)

– – 56 78

210 879 210

1,828 (1,792) 71,154 74,908 73,116 2004/05

– – 32 Network 219 150 219 01 – Road Operations 1,056 Management (6,921) 48,652 80,313 73,392 24,558 2005/06

by Outputs for amounts in $’000) 2004/05 and Funds Income Statement Gains Gain on disposal of Gains Total Income other Total than income from Net Cost of Income from State Government Appropriation Service Assumed Liabilities Natural Disaster Trust Trauma Road Resources received Income from Total State Government Surplus/Deficit for State Government Services free of Charge by the Treasurer by the the period 2005/06 (All non-current assets Funds Capital Contribution

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

49. Reconciliation explaining the transition to Australian equivalents to International Financial Reporting Standards ( AIFRS) Reconciliation of equity at the date of transition to AIFRS: 1 July 2004 (AASB 1.39(a)(i)) Adjustments

Impairment AASB 136 Revaluation Write Down Intangibles Reclassify Para’s AASB 116 AASB 5 AASB 138 AASB 108 Total AIFRS GAAP 12, 59, 60 Para. 29 Para. 1(a) Para. 9 Para’s Adjust- 1 July 1 July 2004 & Aus 61.1 41, 43 ments 2004

Note: $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

ASSETS Current Assets (1) Cash and cash equivalents 35,700 35,700 (2) Restricted cash and cash equivalents 890 890 Inventories 1,477 1,477 Receivables 18,260 18,260 Amounts receivable for services 18,749 18,749 Prepayments 669 669 (3) Non-current assets classified as held for sale 24,504 11,920 (2,550) 9,370 33,874 Total Current Assets 100,249 – 11,920 (2,550) – – 9,370 109,619 Non Current Assets Inventories 7,337 7,337 Receivables 316 316 Amounts receivable for services 426,666 426,666 Property, plant and equipment 56,926 4,458 (719) 3,738 60,665 Infrastructure 16,382,671 (77,725) (77,725) 16,304,946 (4) Intangible Assets 728 728 728 Land Acquired for Roads 87,187 6,160 (9) 2 6,153 93,340 Surplus Assets 22,681 25,229 (2) 25,227 47,908 Total Non- Current Assets 16,983,783 (77,725) 35,847 – – – (41,878) 16,941,905

TOTAL ASSETS 17,084,032 (77,725) 47,767 (2,550) – – (32,508) 17,051,524

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Reconciliation of equity at the date of transition to AIFRS: 1 July 2004 (AASB 1.39(a)(i)) contd. Adjustments

Note: $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

LIABILITIES Current Liabilities Payables (91,023) (91,023) (5) Borrowings (35,730) (35,730) (6) Provisions (16,108) (16,108) Total Current Liabilities (142,861) – – – – – – (142,861) Non Current Liabilities Payables (2,503) (2,503) (5) Borrowings (146,832) (146,832) (6) Provisions (2,907) (2,907) Total Non- Current Liabilities (152,243) – – – – – – (152,243) Total Liabilities (295,104) – – – – – – (295,104) NET ASSETS 16,788,928 (77,725) 47,767 (2,550) – – (32,508) 16,756,421 EQUITY Contributed Equity (641,355) (641,355) (7) Reserves (6,919,477) 77,725 (47,767) 2,550 32,508 (6,886,969) Accumulated Surplus (9,228,096) (9,228,096) TOTAL EQUITY (16,788,928) 77,725 (47,767) 2,550 – – 32,508 (16,756,421)

(1) Equivalent AGAAP line item ‘Cash Assets’ (AIFRS ‘Cash and Cash Equivalents’) (2) Equivalent AGAAP line item ‘Restricted Cash Assets’ (AIFRS ‘Restricted Cash and Cash Equivalents’) (3) Equivalent AGAAP line item ‘Surplus Assets’ (AIFRS ‘Non-current assets classified as held for sale’) (4) Equivalent AGAAP line item – intangible assest not separately disclosed. (AIFRS ‘Intangible assets’) (5) Equivalent AGAAP line item ‘Interest-bearing liabilities’ (AIFRS ‘Borrowings’) (6) Equivalent AGAAP line item ‘Provision for employee benefits’ (AIFRS ‘Provisions’)

(7) Equivalent AGAAP line item ‘Asset revaluation reserve’ (AIFRS ‘Reserves’)

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Reconciliation of equity at end of last reporting period under AGAAP: 30 June 2005 (AASB 1.39(a)(ii))

Adjustments

Impairment AASB 136 Revaluation Write Down Intangibles Reclassify Para’s AASB 116 AASB 5 AASB 138 AASB 108 Total AIFRS GAAP 12, 59, 60 Paras. 29 Para. 1(a) Para. 9 Para’s . Adjust- 30 June 30 June 2005 & Aus 61.1 & 35(a) 41, 43 ments 2005

Note: $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

ASSETS Current Assets (1) Cash and cash equivalents 35,931 35,931 (2) Restricted cash and cash equivalents 854 854 Inventories 1,134 1,134 Receivables 22,298 22,298 Amounts receivable for services 23,153 23,153 Other current assets 4,729 4,729 (3) Non-current assets classified as held for sale 20,694 (54) (1,395) (1,449) 19,246 Total Current Assets 108,793 – (54) (1,395) – – (1,449) 107,345 Non Current Assets Inventories 6,935 6,935 Receivables 186 186 Amounts receivable for services 546,549 546,549 Property, plant and equipment 72,683 (723) (723) 71,960 Infrastructure 19,316,670 (70,318) (43,703) (114,022) 19,202,649 (4) Intangible Assets 731 731 731 Land Acquired for Roads 92,316 (2) (9) 2 (9) 92,307 Surplus Assets 66,552 (29) 31 (2) 66,552 Total Non- Current Assets 20,101,892 (70,318) (43,734) 31 – – (114,022) 19,987,870

TOTAL ASSETS 20,210,685 (70,318) (43,788) (1,364) – – (115,470) 20,095,215

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Reconciliation of equity at end of last reporting period under AGAAP: 30 June 2005 (AASB 1.39(a)(ii)) contd. Adjustments

Note: $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

LIABILITIES Current Liabilities Payables (100,998) (100,998) (5) Borrowings (35,730) (35,730) (6) Provisions (19,663) (19,663) Total Current Liabilities (156,391) – – – – – – (156,391) Non Current Liabilities Payables (80) (80) (5) Borrowings (111,102) (111,102) (6) Provisions (3,614) (3,614) Total Non-Current Liabilities (114,796) – – – – – – (114,796) Total Liabilities (271,188) – – – – – – (271,188) NET ASSETS 19,939,497 (70,318) (43,788) (1,364) – – (115,470) 19,824,027 EQUITY Contributed Equity (824,211) (824,211) (7) Reserves (9,727,275) 77,725 40,910 1,917 120,552 (9,606,724) Accumulated Surplus/ Deficiency (9,388,011) (7,407) 2,878 (553) (5,082) (9,393,092) TOTAL EQUITY (19,939,497) 70,318 43,788 1,364 – – 115,470 (19,824,027)

(7) Equivalent AGAAP line item ‘Asset revaluation reserve’ (AIFRS ‘Reserves’)

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Reconciliation of income statement for the year ended 30 June 2005 (AASB 1.39(b))

Net Gains Expenses Write down, on disposal Revaluation AASB 136 Depreciation Reclassify GAAP AASB 116 AASB 116 Para’s 12, AASB 5 AASB 108 Total AIFRS 30 June Para’s Paras. 29 59, 60 & Para. Para’s . Adjust- 30 June 2005 34(a) & 35(a) Aus 61.1 1(a) 41, 43 ments 2005

Note: $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 COST OF SERVICES Expenses (1) Employee Benefits Expense 27,132 27,132 Supplies and Services 276,482 276,482 Depreciation – Infrastructure Assets 137,573 (7,377) (7,377) 130,196 Depreciation – Other Non Current Assets 1,678 (128) (128) 1,550 (2) Finance Costs 10,427 10,427 Grants and Subsidies 86,500 1,314 2 1,316 87,816 Capital User Charge 33,716 33,716 Infrastructure Assets Retired/Replaced 10,964 (30) (30) 10,934 Superannuation 4,846 4,846 (3) Carrying Amount of Non-Current Assets disposed of 5,181 (5,181) (5,181) – Total Cost of Services 594,500 (5,181) 1,314 (7,407) (126) – (11,400) 583,100 Income Revenue Contributions to Roadworks (11,283) (11,283) Commonwealth Grants and Contributions (104,808) (104,808) Sale of Goods and Services (95,834) (95,834) (4) Capitalisation of Road Infrastructure Assets (29,454) 1,369 1,369 (28,085) Proceeds from Sale of Non-Current Assets (8,745) 8,745 – Grants from Other Bodies (4,775) (4,775) Other Revenue (2,470) (1,369) (1,369) (3,839)

Total Revenue (257,369) 8,745 – – – – – (248,624)

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Reconciliation of income statement for the year ended 30 June 2005 (AASB 1.39(b)) contd. Net Gains Expenses Write down, on disposal Revaluation AASB 136 Depreciation Reclassify GAAP AASB 116 AASB 116 Para’s 12, AASB 5 AASB 108 Total AIFRS 30 June Para’s Paras. 29 59, 60 & Para. Para’s . Adjust- 30 June 2005 34(a) & 35(a) Aus 61.1 1(a) 41, 43 ments 2005

Note: $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Gains (3) Gain on disposal of non-current assets (3,564) 1,564 (427) (2,427) (2,427) Total Gains – (3,564) 1,564 – (427) – 6,318 (2,427) Total Income other than income from State Government (257,369) 5,181 1,564 – (427) – 6,318 (251,051) NET COST OF SERVICES 337,131 – 2,878 (7,407) (553) – (5,082) 332,050 INCOME FROM STATE GOVERNMENT Service Appropriation (486,207) (486,207) Natural Disaster Funds (8,790) (8,790) Road Trauma Trust Fund (500) (500) Liabilities assumed by the Treasurer (906) (906) Resources received free of charge (642) (642) Total income from State Government (497,045) – – – – – – (497,045) SURPLUS/ (DEFICIT) FOR THE PERIOD (159,914) – 2,878 (7,407) (553) – (5,082) (164,996)

(1) Equivalent AGAAP line item ‘Employee Expenses’ (AIFRS ‘Employee Benefits Expense’) (2) Equivalent AGAAP line item ‘Borrowing Costs’ (AIFRS ‘Finance Costs’) (3) Equivalent AGAAP line items: Expenses – ‘Carrying amount of non-current assets’, Revenue – ‘Proceeds from disposal of non-current assets (AIFRS ‘Gain on disposal of non-current assets’)

(4) Equivalent AGAAP line item ‘Principal Shared Paths Capitalised’ (AIFRS ‘Capitalisation of road infrastructure assets’)

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Notes to the Reconciliations Adjustments to the Income Statement for the Impairment: AASB 136 Para’s 12, 59, 60, Aus 61.1 period ended 30 June 2005 AASB 136 requires that assets must be assessed for The reduction in the carrying value of earthworks impairment losses at the reporting date. Paragraph and pavements at 1 July 2004 reduced the value of Aus 61.1 provides that an impairment loss on a revalued earthworks and pavements retired during 2004-2005 by asset is recognised directly against the revaluation $0.030 million and lowered the depreciation expense for reserve to the extent the loss does not exceed the 2004-2005 by $7.377 million. amount in the revaluation reserve for the same class The reduction in depreciation and asset retirements of assets. produced a corresponding increase of $7.407 million in The review of the life of road earthworks completed the accumulated surplus. during 2003-2004 identified segments of road that Revaluation: AASB 116 Para. 29 were deficient in terms of road geometry (i.e. technical AASB 116 requires that after initial recognition, an entity obsolescence). Those earthworks assessed to have must choose either the cost or revaluation model as its a useful life of less than the original 100 years qualify policy and shall apply that policy to an entire class of as impaired assets together with the pavements property, plant and equipment. associated with these substandard alignments if their useful life has been revised below the original design life. In 2003-2004 Main Roads commenced a progressive revaluation of land and buildings from cost to fair value, Adjustments to opening Balance Sheet (1 July 2004) in accordance with paragraph 8.13 of AASB 1041 The carrying value of infrastructure assets has “Revaluation of Non-Current Assets”. The revaluation been reduced by $77.725 million to accommodate was completed in 2004-2005. To eliminate this conflict impairment losses identified for earthworks ($61.099 with AASB 116, all land and buildings still measured at million) and pavements ($16.626 million) at 30 June cost at 30 June 2004 have been revalued to fair value. 2004. The losses have been recognised directly against the asset revaluation reserve. Adjustments to opening Balance Sheet (1 July 2004) The revaluation of land and buildings reported at cost at Adjustments to 30 June 2005 Balance Sheet 30 June 2004 increased the value of land and buildings The carrying value of infrastructure assets has been by $47.767 million and this amount was recognised reduced as a result of the impairment loss recognised directly in the asset revaluation reserve. The increases for earthworks and pavements at 1 July 2004, and for the various asset classes are as follows: the impact of those losses on the depreciation and retirements expense for 2004-2005. $’000

The changes required to equity to compensate for Property, plant & equipment 4,458 the $70.318 million reduction in the carrying value of Land acquired for roads 6,160 infrastructure assets include a $77.725 million reduction Non-current assets classified as held for sale 11,920 in the asset revaluation reserve and a $7.407 million Other surplus assets 25,229 increase in the accumulated surplus. 47,767

See ‘Adjustments to Income Statement for period Adjustments to 30 June 2005 Balance Sheet ended 30 June 2005’ below for details of changes in The adjustment of the land and buildings valuations the accumulated surplus. at 1 July 2004 to accommodate the revaluation of assets reported at cost at 30 June 2004 also required adjustments for asset movements during 2004-2005, including asset transfers, disposals and the 30 June

2005 revaluation.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

The net change in the various asset classes at 30 June The gross carrying amount and accumulated 2005 as a result of these adjustments was as follows: depreciation were restated separately to reflect the current condition of the assets as allowed under $’000 paragraph 5.8 of AASB 1041 ‘Revaluation of Non- Land acquired for roads (2) Current Assets’. Non-current assets classified as held for sale (54) The accumulated depreciation was recalculated to Other surplus assets (29) reflect the proportion of the useful life of the assets that (85) had elapsed at 23 June 2005. This $0.085 million reduction in assets is offset by Upon the introduction of the Australian equivalents to a corresponding reduction in equity. The equity International Financial Reporting Standards (IFRS), Main changes included a reduction of $2.878 million in the Roads adopted the revaluation model for measuring accumulated surplus and an increase of $2.793 million infrastructure assets after initial recognition. The in the asset revaluation reserve. treatment of accumulated depreciation upon revaluation Refer to ‘Adjustments to the Income Statement for the is prescribed in paragraph 35(a) of AASB 116 ‘Property, period ended 30 June 2005 for details of the change in Plant and Equipment’ and requires that when the assets accumulated surplus. are revalued, the accumulated depreciation must be Adjustments to the Income Statement for the restated proportionately with the change in the gross period ended 30 June 2005 carrying amount of the asset. The increase in the carrying value of assets sold as The recalculation of the accumulated depreciation a result of the revaluation at 1 July 2004 amounted on this basis has reduced the carrying amount of the to $1.564 million. This reduced the ‘gain on disposal earthworks and pavements (infrastructure) assets by of non-current assets’ and reduced the accumulated $43.703 million and reduced the asset revaluation surplus. The carrying amount of assets transferred reserve by the same amount. (granted) to local government increased ‘grants No adjustment is required for 1 July 2004 because the and subsidies’ by $1.314 million and reduced the revaluations in 2003 and 2004 were made by way of accumulated surplus. indexation (using the Road and Bridge Construction Revaluation: AASB 116 Para. 35(a) Index) and the accumulated depreciation was restated Paragraph 35(a) of AASB 116 ‘Property, Plant and in accordance with the requirements of AASB 116 Equipment’ and requires that when an item of property, paragraph 35(a). plant and equipment, other than buildings, is revalued, Net Gain on Disposal: AASB 101 Para’s 34(a) the accumulated depreciation must be restated and 87(c) proportionately with the change in the gross carrying Under former AGAAP the disposal of non-current assets amount of the asset. was disclosed on a gross basis. That is, the proceeds Adjustment to 30 June 2005 Balance Sheet of disposal were revenue and the carrying amount the At 30 June 2005, earthworks and pavements were assets were an expense. Under AIFRS (AASB 101), revalued by reference to the price of newer assets in the disposal of items of property, plant and equipment accordance with Main Roads policy. The replacement is required to be disclosed separately in the income cost of the assets was estimated based on actual statement and the gains or losses on the disposal will contract rates. be reported (on a net basis) by deducting the carrying amount of the assets and the related selling costs from

the disposal proceeds.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Adjustments to the Income Statement for the The net change in asset classes at 30 June 2005 was period ended 30 June 2005 as follows:

The carrying amount of non-current asset disposals $’000 reported at 30 June 2005 has been deducted from the disposal proceeds and reported under income as a ‘Gain on disposal on non-current assets’. Non-current assets classified as held for sale (1,395) The adjustment reduces expenses and revenue and no Other surplus assets 31 impact on equity. (1,364)

Write-down, depreciation of Non Current Assets The reduction in assets is offset by a corresponding held for sale: AASB 5 Para. 1(a) reduction in equity. The equity changes include a AASB 5 requires that a non-current asset classified reduction of $1.917 million in the asset revaluation as held for sale shall not be depreciated and shall be reserve and a $0.553 million increase in the measured at the lower of its carrying amount (prior to accumulated surplus. reclassification) and fair value less selling costs. Refer to ‘Adjustments to the Income Statement for the Assets surplus to requirements and held for sale were period ended 30 June 2005’ for details of the change in already reported as a separate class of asset at 30 accumulated surplus. June 2004 and were measured at fair value or were Adjustments to the Income Statement for the progressively revalued to fair value (refer note ‘Para. 29 period ended 30 June 2005 Land and Buildings’) by 30 June 2005. The write-down for selling costs and the discontinuation The assets available for sale at 30 June 2004 and those of depreciation in respect of surplus assets has assets reclassified as held for sale during 2004-2005 increased the accumulated surplus by $553,000. The have been written-down from fair value to fair value corresponding adjustments to income and expenses less selling costs. The write-down has been recognised were as follows: directly in the asset revaluation reserve. • the depreciation expense reduced by $128,000 • grants and subsidies increased by $2,000 Adjustment to opening Balance Sheet (1 July 2004) • the gain on disposal of non-current assets increased Non-current assets available for sale at 30 June 2004 by $427,000 have been written-down by $2.55 million to recognise estimated selling costs. The asset revaluation reserve Intangible assets: AASB 138 Para. 9 Intangible has been reduced by the same amount. assets

Adjustment to 30 June 2005 Balance Sheet AASB 138 requires that intangible assets shall be disclosed a separate class of assets on the balance The write-down of assets available for sale at 30 June sheet. This includes software not integral to the 2004 and reclassified as held for sale during 2004- operation of a computer. 2005, together with the write-back of depreciation charged in respect of surplus assets, required Computer software and drainage easements have adjustments for asset movements during 2004-2005, been reclassified as intangible assets and disclosed including asset transfers, disposals and the 30 June on the face of the balance sheet. Software costs were 2005 revaluation. previously classified as property, plant and equipment while easements were reported as part of land acquired

for roadworks.

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Commissioner of Main Roads Notes to the Financial Statements FOR YEAR ENDED 30 JUNE 2006

Adjustments to opening Balance Sheet (1 July 2004) Adjustment to 30 June 2005 Balance Sheet Computer software assets and drainage easements Computer software assets and drainage easements have been reclassified as intangible assets and have been reclassified as intangible assets and transferred from property, plant and equipment and land transferred from property, plant and equipment and land held for roadworks. The carrying value of the assets held for roadworks. The carrying value of the assets was as follows: was as follows:

$’000 $’000

Property, plant and equipment Property, plant and equipment (computer software) 719 (computer software) 722 Land acquired for roadworks Land acquired for roadworks (drainage easements) 9 (drainage easements) 9 728 731

Statement of Cash Flows The transition to AIFRS did not have a material impact on the Statement of Cash Flows or the determination of

cash equivalents for the year ended 30 June 2005.

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Financial Overview

• The value of Main Roads net assets is $22.5 billion, /Ì>Ê Ý«i`ÌÕÀiÊLÞÊ/Þ«iÊÓääxäÈÊ >«Ì>Ê>`Ê"«iÀ>Ì}® an increase of $2.7 billion over the previous year. Êf The value of road infrastructure is now $21.4 billion,

an increase of $2.2 billion over the previous year. >«Ì>Ê Ý«i`ÌÕÀi >Ê,i«>ÞiÌÊ Î£x >`Ê>ViÊ ÃÌ • Total funding received in 2005-06 amounted to {{ «ÞiiÊ iivÌÃÊ $1.2 billion including an advance of $323 million >`Ê-Õ«iÀ>Õ>ÌÊ vÀ>ÃÌÀÕVÌÕÀiÊ>ÃÃiÌÃÊ Ý«iÃi from the Commonwealth for expenditure on AusLink ÀiÌÀi`ÉÀi«>Vi` În Ç projects over the period 2005-06 to 2009-10. >«Ì>Ê1ÃiÀÊ >À}i -Õ««iÃÊ>`Ê xx -iÀÛViÃ • Main Roads expended almost $932 million (excludes ÓÈ£

$42 million of non-cash accounting treatments) À>ÌÃÊ>`ÊÃÕLÃ`iÃ £££ – $110 million was provided to Local Government i«ÀiV>ÌÊ Ý«iÃiÊ>`Ê as grants and subsidies. ÀÌÃ>ÃÌÊ Ý«iÃi £{{ – Capital expenditure on road infrastructure was -Õ««iÃÊ>`Ê-iÀÛViÃ $305 million i«ÀiV>ÌÊ Ý«iÃiÊ>`ÊÀÌÃ>ÃÌÊ Ý«iÃi – Almost $36 million of loans were repaid during À>ÌÃÊ>`ÊÃÕLÃ`iÃ >«Ì>Ê1ÃiÀÊ >À}i the year. This has lead to a reduction of the vÀ>ÃÌÀÕVÌÕÀiÊ>ÃÃiÌÃÊÀiÌÀi`ÉÀi«>Vi` Interest cost on borrowings by $2.4 million to >«Ì>Ê Ý«i`ÌÕÀi >Ê,i«>ÞiÌÊ>`Ê>ViÊ ÃÌ $8 million. «ÞiiÊ iivÌÃÊ>`Ê-Õ«iÀ>Õ>ÌÊ Ý«iÃi – For Information on expenditure by road program refer to the achievements section of the report. • The loan liability as at the end of 2005-06 was $111.1 million, representing a 24.3% decrease from 2004-05.

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Corporate Governance

09 « PREVIOUS CONTENTS NEXT « 148 Main Roads Western Australia Annual Report 2006

Corporate Governance Corporate governance is the system by which Main Roads directs and manages its business activities to optimise performance, deliver value for customers, comply with applicable regulations and be accountable for its actions.

This section outlines the key corporate governance practices in place in Main Roads.

There is a strong management team to ensure that sound policies and practices in relation to management and oversight, ethical and responsible decision-making, safeguarding the financial management and reporting, managing risk, providing value for money and respecting the rights and requirements of stakeholders are in place.

This diagram shows the Corporate Governance model practised in Main Roads.

Managing in an open and outwardly focused manner, working closely with stakeholders and driven by values that incorporate the views of our stakeholders and customers in our daily business and decision-making.

Corporate Executive Committees: Internal and Audit Committee External Policies, Business Strategic, Risk Management Processes, Improvement, Corporate and Contract Performance Corporate Directorate and Project Monitoring Development, Business Plans Occupational Management and Review and Safety and Health Controls Reporting and Budget Committee

Corporate Executive

Commissioner of Main Roads

Enabling Legislation « PREVIOUS CONTENTS NEXT « 148 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 149

Statutory Framework The Corporate Executive The Corporate Executive comprises the Commissioner Commissioner of Main Roads together with the Executive Directors of Finance and The Main Roads Act 1930 establishes the Commissioner of Commercial Services, Construction and Maintenance Main Roads as a corporate body and sets out the powers Services, Road Network Services, Major Projects, and duties of the office. The Act was last amended in Technology and Environment, Organisational 1997. Main Roads Western Australia has been registered in Development, Operational Planning and Development, Western Australia as a business name. The Commissioner and the Manager of Budget and Program Management. of Main Roads administers the Main Roads Act and the accompanying Regulations. Mr Menno Henneveld is the The role of the Corporate Executive is to assist the Commissioner of Main Roads. He was appointed to the Commissioner in: office on 2 December 2002 in accordance with Section 7 • Ensuring that best-practice corporate governance is of the Main Roads Act 1930, for a period of five years. His practised across Main Roads remuneration is determined by the Salaries and Allowances • Formulating and implementing the strategic plan Tribunal under Section 6(1)(d) and (e) of the Salaries and • Establishing directorate business plans and budgets Allowances Act 1975. The Commissioner is accountable to and managing and reporting performance against the Minister for Planning and Infrastructure. these plans • Developing Main Roads personnel to their maximum Other Empowering Legislation potential and empowering people to produce value The Land Administration Act 1997 provides powers for for customers the resumption of land. Section 84 of the Road Traffic • Financial management of income, expenditure, Act 1974 provides a right of recovery for road damage, assets and liabilities of Main Roads, and reporting on and Regulation 297 of the Road Traffic Code 2000 performance against budgets and targets provides the Commissioner with the power to erect road • Ensuring compliance with all legislation, government signs, traffic signals and installation of road marking. policies and directives Regulation 23 of the Road Traffic (Vehicle Standards) Regulations 2002 provides the Commissioner with the • Managing risks authority to issue permits for vehicles exceeding the • Fostering a strong culture of being customer regulatory dimensions and mass of vehicles or loads. focused Motor Vehicle Licence Fees are collected under the • Setting Main Roads’ standards of behaviour of Road Traffic Act 1974 for cars and light vehicles and personnel, consistent with the public sector code under the Road Transport Reform (Heavy Vehicles of ethics and its own code of conduct and values. Registration) Act 1997 (Cwlth) for heavy vehicles. The Corporate Executive meets monthly. In addition, special meetings are held as necessary. Compliance with other State and Commonwealth Legislation and Regulations Main Roads has processes and controls in place to ensure that the organisation complies with all legislation

and regulations which impact on its activities.

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Members of the Corporate Executive at 30 June 2006

MENNO HENNEVELD JOHN MARMION COMMISSIONER OF MAIN ROADS EXECUTIVE DIRECTOR CONSTRUCTION Prior to his appointment as Commissioner of AND MAINTENANCE SERVICES Main Roads in December 2002, Menno had a 38 year John Marmion joined Main Roads as a cadet in 1970. career in the water industry and held positions of After graduating in 1973 with an Associateship in Director of Engineering Services; General Manager Civil Engineering he worked in the traffic services and Commercial; General Manager Customer Services and road design branches before country appointments in Group Director, Major Development with the Water Carnarvon, Derby and Albany. His recent appointments Corporation of Western Australia. were as Regional Manager for the Great Southern Region and Superintendent for Term Network Contracts Menno is Chairman of Austroads, Chairman of the 5/99 and 6/99 for the Great Southern, Wheatbelt Australasian Society for Trenchless Technology and South and South West regions. He was appointed to Chairman of the International Society for Trenchless the position of Executive Director Construction and Technology. Maintenance Services in January 2006. He holds a Bachelor of Engineering (Civil) from The University of Western Australia, a Postgraduate Diploma in Administration from Curtin University, is a Fellow of Engineers Australia, a Fellow of the Australian Institute of Company Directors and a Chartered Member of the Chartered Institute of Logistics and Transport. Menno was also appointed a Board member of the ARRB Group Ltd, formerly known as the Australian Road

Research Board, in May 2005. « PREVIOUS CONTENTS NEXT « 150 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 151

DES SNOOK GARY NORWELL EXECUTIVE DIRECTOR ROAD NETWORK EXECUTIVE DIRECTOR TECHNOLOGY SERVICES AND ENVIRONMENT Des Snook has 26 years of service with Main Roads, Gary Norwell has over 35 years of service with having joined in 1979. Main Roads. His previous appointments at Main Roads include Executive Director Planning and Practice, He holds a Bachelor of Engineering (Civil) and is a Manager Road Maintenance Strategy, Regional Member of the Institution of Engineers Australia. He has Manager Kimberley and Regional Manager Great experience in road construction and maintenance, project Southern. Gary’s achievements include a key role in the and contract management, and bridge design and development and implementation of asset management construction. He worked in various regions for 10 years. planning and capital investment planning in Main Roads His previous appointments include Executive Director and numerous road projects around the State. Urban Roads, Operations Manager North, and Regional Gary is the National Program Manager for the Austroads Manager for Wheatbelt South and Pilbara Regions. In Asset Research and Publications Program. He is his role as Executive Director Road Network Services he a former Chairman of the World Road Association has responsibility in Main Roads for all traffic and safety, Committee on Road Management. heavy vehicle and customer service issues. Gary holds an Associateship in Civil Engineering from Des is Main Roads’ representative on the Road the WA Institute of Technology (now Curtin University of Safety Council, the peak road safety body in Western Technology), is a Fellow of the Institution of Engineers Australia. He is also a Director on the Board of Australia and a Certified Practising Engineer. Transport Certification Australia, the national certifying and auditing body for Austroads Intelligent Access PETER WORONZOW Program for heavy vehicles. EXECUTIVE DIRECTOR FINANCE AND COMMERCIAL SERVICES PHIL LADNER EXECUTIVE DIRECTOR MAJOR PROJECTS Peter Woronzow holds a Bachelor of Arts (Economics) from Murdoch University, a Graduate Diploma in Public Phil Ladner has 39 years of service with Main Roads Sector Management from Curtin University and studied having joined the organisation in 1967. His previous accounting and management at The University of appointments at Main Roads include Director Western Australia. He joined Main Roads 25 years ago Contract Management and Regional Manager in in the Pilbara Region and has extensive experience in three regions. His achievements include key roles in both the operational and corporate support areas of developing contract management initiatives such as Main Roads. Key achievements include taking a lead partnering and pre-qualification, delivering major road role in the establishment of the Supply and Transport infrastructure through alliance contracts and design and the Legal and Commercial Services Branches, and construct contracts. Phil holds a Bachelor of and the implementation of the supply and contract Engineering (Civil), a Master of Engineering Science, administration systems. He has held the positions of and he is also a Fellow of Engineers Australia. Commercial Manager, Manager Legal and Commercial

Services and Manager Corporate Support. « PREVIOUS CONTENTS NEXT « 152 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 153

JOHN TAYA BOB PHILLIPS EXECUTIVE DIRECTOR ORGANISATIONAL MANAGER BUDGET AND PROGRAM DEVELOPMENT MANAGEMENT Upon graduating from university, John Taya joined Bob Phillips has 17 years’ service with Main Roads, Main Roads in the Mid West Region and subsequently having joined in 1988. He is a Certified Practising worked in Wheatbelt North, Wheatbelt South, Great Accountant. He has also had a total of 22 years’ Southern, Metropolitan and Moora Regions before experience in senior accounting positions in the private taking on industrial relations and human resources sector and at the WA College of Advanced Education management roles resulting in his appointment in (now Edith Cowan University). 1999 as Executive Director Human Resources (now In his role as Manager Budget and Program Organisational Development). Management he has responsibility for the development, John has also worked overseas and was a lecturer management and preparation of Main Roads’ budget in the MBA programs at the Graduate School of and programming task, annual budget and forward Management at The University of Western Australia, the works program. His position also involves considerable Graduate School of Business at Curtin University and liaison on funding matters with both the federal and local more recently worked at the Department of the Premier governments. Bob is a representative on the State Road and Cabinet. He has written and published papers on Funds to Local Government Advisory Committee and industrial relations, human resource management and also the Federal–State Black Spot Consultative Panel. organisational development. John has a Bachelor of Business and a Master of Industrial Relations. Corporate Executive Committees There are five Corporate Executive Committees. MIKE WALLWORK EXECUTIVE DIRECTOR OPERATIONAL Audit Committee PLANNING AND DEVELOPMENT The Main Roads Audit Committee is responsible for Mike Wallwork joined Main Roads as survey hand in the approving the three-year strategic audit plan and the Albany District in November 1960 for vocational work at annual audit plan to ensure adequacy of the planned the end of second year engineering at the University of coverage and work priorities. The Strategic Audit Plan, Western Australia. He became a Cadet Engineer in early covering the period 2006-09 has been developed based 1961 and graduated in 1963 with a BE Civil from The on the organisation’s business risk exposures. It is the University of Western Australia. Since commencing as responsibility of the Committee to ensure that the audit an Engineer in the Narrogin Division in 1963, Mike has function is carried out by personnel with appropriate worked in Wheatbelt South, Kimberley, Great Southern qualifications and experience. The Manager Management and Pilbara Regions, the latter two as Divisional Review and Audit is a Certified Practising Accountant. Engineer from 1972-80 before coming to Perth in 1980. Business Improvement Committee Mike assisted the Principal Engineer North before being The Business Improvement Committee ensures appointed to that position in 1987. Since then, the that business processes and systems are effective, titles and regional responsibilities have changed and in promotes efficient use of resources and supports sound early 2005 Mike moved from the position of Executive corporate governance. The Committee comprises four Director Construction and Maintenance Services to the members of the Corporate Executive, meets monthly position of Executive Director Operational Planning and and reports as necessary to the full Corporate Executive

Development. or the Commissioner. « PREVIOUS CONTENTS NEXT « 152 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 153

Corporate Development Committee • Ensuring programs are achieving the desired The Corporate Development Committee is an executive outcomes level committee responsible for leading organisational • Providing guidance to Executive Directors and learning and development in line with Main Roads’ Program Managers and ensuring appropriate Building and Expanding Capability Strategy. This has communication and clarity of goals across the included a strong focus on leadership development, organisation. enhancing technical excellence, and developing Main Roads future capability through an extensive Corporate Governance Review suite of Development Employee Programs. In April 2006, Main Roads conducted a review of its corporate governance processes and procedures at Corporate Occupational Safety and Health a Senior Management level. This review was aimed to Committee provide insight into: The Corporate Occupational Safety and Health • determining the level of awareness and (OSH) Committee focuses on the effective strategic understanding of Corporate Governance practices management, development, promotion and review of at the Corporate Executive and Senior Management safety and health across the organisation. The level Committee, through consultation, sets the organisational • identifying the gaps in knowledge and existing strategic directions for the safety portfolio, monitors practices and identifying methods to fill those gaps and evaluates safety performance, provides advice and • comparing the results against the survey conducted guidance to the Corporate Executive on occupational in 2001 to determine the success of previous safety and health matters, and manages corporate actions. initiatives and issues referred to it through The comparison of results showed that there was little the organisation’s OSH Committee structure. change in perceptions of the Corporate Executive Budget Committee between the 2001 and 2006 surveys. Generally The Budget Committee is the peak decision-making awareness of Main Roads’ Corporate Governance body for Investment Planning, Program Development practices are good and meet requirements. and Delivery in Main Roads. Its objective is to ensure Ethical and Responsible Main Roads makes the best use of funds to achieve Decision-Making strategic outcomes. Its key responsibilities include: • Approving appropriate program strategies Business Plan and Performance Agreements and structures to deliver outcomes linked with The Corporate Executive insists that all employees Government objectives adhere to the highest standards of corporate • Providing strategic direction for alternative funding governance practice and ethical behaviour. Each mechanisms consistent with Government policy member of the Corporate Executive has an annual and directions business plan for their own directorate, which is linked • Approving the distribution of indicative funding to to the Corporate Business Plan and the Strategic Plan. all programs The Commissioner has a performance agreement • Approving the final four, and ten-year program with the Minister for Planning and Infrastructure, and submissions to Department of Treasury and Finance other members of the Corporate Executive have a and five-year AusLink Program to Department of performance agreement with the Commissioner. Transport and Regional Services • Provide advice to the Commissioner with regard to the impact of Government policies and the potential

implications « PREVIOUS CONTENTS NEXT « 154 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 155

Procurement Policies and Procedures Ethical Standards and Performance Main Roads’ procurement policies and procedures, Main Roads has a clear Code of Conduct, which is which comply with the requirements of the State Supply supported by a number of human resource policies that Commission, are documented in the Procurement apply to all employees. Procedures are in place to meet Management Manual and strict compliance is monitored the requirements of the Government relating to ethical by the Supply and Transport Branch. In addition standards and performance. Main Roads complies with to routine procurement matters, these policies and the Notification Guidelines under Sections 28 and 29 procedures address requirements and conduct in the of the Corruption and Crime Commission Act 2003. following areas: A report, as required by Section 31 of the Public Sector • Value for money Management Act 1994 on the extent to which public • Open and effective competition sector standards, codes of ethics and any relevant code • Contracting approvals of conduct have been complied with was completed. • Whole of government common arrangements Equal Employment Opportunity (EEO) • Integrity, ethics and probity Main Roads promotes management practices that are • Assuring quality free of bias and discrimination to create and maintain an • Environmental procurement equitable diverse workforce. Main Roads has • Disposal of goods progressed a number of the initiatives under its new • Complaints and grievance resolution Main Roads Diversity Plan – ‘The Road to Diversity • Compliance with other government policies. 2007’. The activities include launching the Women in Management Strategy, holding Lunch-n-Learn seminars Main Roads uses an online Contract Administration and progressing the Employing and ngaging Indigenous System to manage the tender process and to assist Australians strategy and Work–Life Balance Strategy. in the management of all contracts. In addition, tendering and contract administration procedures are Freedom of Information formally documented in the Tendering and Contract An Information Statement, which has been produced Administration Manual. in accordance with the requirements of the Freedom of A Tender Committee, comprising two experienced Information Act 1992, is available on the Main Roads senior officers from Main Roads and two senior website. This statement provides guidance on how to government officers external to Main Roads, ensures obtain information from Main Roads under the Freedom that contracting policies and procedures are followed of Information (FOI) legislation as well as information for all complex tenders over $100 000. available without a formal FOI application. The Main Roads Freedom of Information Coordinator can be Contracts for Goods and Services exceeding $1 million contacted at the East Perth office on (08) 9323 4268. are referred to the State Tenders Committee for review and endorsement prior to award. 2005-06 FOI statistics: • FOIs received – 34 Conflict of Interest: Personal Interests in • Complaints to the Ombudsman – 7 Contracts with Main Roads • Complaints to the Ombudsman that were upheld – 2. As a result of the April 2006 Corporate Governance review, one of the major actions was the reviewing Ministerial Directives and updating of the Conflict of Interest guidelines and There were no directives issued by the Minister for processes within the organisation. Planning and Infrastructure under Section 19B of the Currently, Manager Legal and Commercial Services is Main Roads Act 1930 during the year. drafting updated guidelines and processes to ensure that all the conflicts of interest are identified, registered and

managed effectively throughout the whole organisation. « PREVIOUS CONTENTS NEXT « 154 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 155

Public Interest Disclosure Act 2003 The efficiency and effectiveness of the recordkeeping In accordance with Section 23 (1) of the Public Interest training program is being managed by reviewing Disclosure Act 2003, Main Roads has: feedback received from the online courses. Participants • Appointed a Public Interest Disclosure Officer for enrolled in the online courses are also required to receiving disclosures made under the Act and complete assessments. Feedback will be sought on the coordinating appropriate investigations and reports. Records Seminar program. • Implemented policies and procedures for handling Safeguarding the Integrity of public interest disclosures made under the Act. Financial Management and Reporting • Placed the policy and procedures online available to all employees. Financial Management Policies and Procedures A comprehensive Accounting Manual, which contains Main Roads Public Interest Disclosure Officer can be the accounting and financial management policies and contacted at the Don Aitken Centre, East Perth or on procedures, is maintained. This manual together with (08) 9323 4562. the Financial Administration and Audit Act 1985 and Recordkeeping Plan the Treasurer’s Instructions are available online to all employees. Main Roads Recordkeeping Plan was approved by the State Records Commission in October 2004. An Internal Controls evaluation of Main Roads Recordkeeping System will be A comprehensive system of internal controls is in undertaken by August 2009. place to ensure that there is an appropriate division of Main Roads has an extensive recordkeeping training responsibilities to safeguard the assets and interests of program for 2005-06 which involved: Main Roads. • TRIM Electronic Document Management System (EDMS) training which concluded in December 2005. Reporting to the Department of Treasury and This coincided with the roll out of TRIM EDMS across Finance Main Roads and approximately 900 took part. In addition to providing financial reports to management • A TRIM online course has been developed by and the Corporate Executive, there is a requirement to Main Roads and Techniworks. This was completed provide daily, monthly, quarterly and annual information in April 2006. New employees will be required to to the Department of Treasury and Finance, and this undertake the course. The course is also a refresher also serves as an independent check on the integrity of course and resource for Main Roads employees. the financial reporting. • The online Record Keeping Awareness course being Management Review and Audit rolled out to all employees. This concluded in April The role of the Branch has changed from providing 2006. To date 40% of employees have completed assurance to management that there is satisfactory the course. Monitoring of progress will continue and compliance with internal controls within Main Roads, to any new officers will be required to complete this being a management tool assisting with organisational training. performance. • A Records Seminar for all Main Roads Records staff has been organised to commence in July 2006. The seminar will include a training program.

Central Records Section finalised its new structure in March 2006. The new structure complies with Records

Legislation and incorporates EDMS functions. « PREVIOUS CONTENTS NEXT « 156 Main Roads Western Australia Annual Report 2006

To reflect this change the Internal Audit branch has been Recognising and Managing Risk renamed Management Review and Audit. The focus of Main Roads has in place a corporate risk management the branch is directed at ‘adding value’, assisting and procedure to identify, assess, monitor and manage encouraging improvement within Main Roads. risk throughout the organisation. Identified key risks A new position, the Senior Management Review and and associated treatment plans are incorporated in the Audit officer has been created and filled during the annual directorate and branch business plans and form year. Ernst and Young provide support to the branch part of the quarterly reporting cycle. by way of conducting audits assigned to the contractor A corporate database and risk management tool, and tenders have been called for future support to Riskweb, is utilised to provide risk-reporting information the branch. to the Corporate Executive on a quarterly basis. Twenty four audits were completed during the year Risk of corruption and misconduct is considered including twelve Operational Audits. as a component of risk in annual and ongoing risk assessment at a senior and executive level. Statutory Audit Implementation Strategies Measurement The annual independent external audit is carried out by the Auditor General for Western Australia, in accordance Key actions, timeframes and key performance indicators with the Financial Administration and Audit Act 1985. have been established for each focus area in 2K7 and The Auditor General’s audit opinion is addressed to the its supporting strategies. These have been linked to Parliament of Western Australia and audit findings are individual Executive Director’s business plans to ensure reported to both Houses of the Parliament. that Main Roads achieves its objectives. Awareness training for all employees has been provided in relation

to 2K7 and its five supporting strategies. « PREVIOUS CONTENTS NEXT « 156 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 157

Appendices

10 « PREVIOUS CONTENTS NEXT « 158 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 159

Road Industry Fact Summary

2006 Western Australia Australia Western Australia (%) Area (square kilometres) 2 529 875 7 692 024 32.89 Population 2 010 100 20 328 600 9.89 Licensed drivers and riders (including all MDL) 1 437 000 N/A *** Vehicles on register including motor cycles 1 529 615 13 920 105 10.99 Annual Vehicle Kilometres Travelled (100 million VKT) 217.00* 2 025.69* 10.71 Road length excluding forestry roads (kilometres) 150 580 N/A ***

Fatalities (for calendar year 2005) 162 1 634 9.91 Fatalities/100 million VKT 0.75 0.81 Fatalities/100,000 persons 8.06 8.04 Fatalities/10,000 vehicles 1.06 1.17

Serious injuries (for calendar year 2005) 3 065 N/A *** Serious injuries/100 million VKT 14.12 Serious injuries/100 000 persons 142.48 Serious injuries/10 000 vehicles 20.04 *Main Roads WA estimates. ***Information is not available for the rest of Australia. MDL = Motor Driver’s Livence

Sources Area ABS Year Book Australia 2006 (Cat. No. 1301.0) Population Australian Demographic Statistics June 2005 (Cat No. 3101.0) Licensed Drivers WA Licensing Centre (30 June 2006) Road Length Main Roads WA (30 June 2006) Fatalities Main Roads WA Accidents System and Australian Transport Safety Bureau (31 Dec 2005) Vehicles on Register ABS Motor Vehicle Census (31 Mar 2005)

Road Classification (as at 30 June 2006) Sealed (km) Unsealed (km) Total (km) Sealed % Auslink National Networks1 4 876 0 4 876 100 State Highways 5 893 167 6 060 97 Main roads 5 872 986 6 858 86 Sub-Totals 16 641 1 153 17 794 94 Local roads regularly maintained 33 494 91 451 124 945 27 Local roads not regularly maintained 139 4 116 4 255 3 Sub-totals 33 633 95 567 129 200 26 Forestry roads 72 27 033 27 105 0 National Park roads 55 2 349 2 404 2 Privately maintained roads 120 1 062 1 182 10 Sub-totals 247 30 444 30 691 1 Total, WA Road Network 50 521 127 164 177 685 28 1. Auslink National Network contains several sections of local roads, which will be included until the Peel deviation is constructed.

Source

Main Roads « PREVIOUS CONTENTS NEXT « 158 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 159

Statement of Expenditure Required Under section 175ZE of the Electoral Act 1907 In accordance with Section 175ZE of the Electoral Act 1907, Main Roads Western Australia incurred $993 000 during 2005-06 in advertising, market research, polling, direct mail and media advertising. Expenditure was incurred in the following areas:

MEDIA ADVERTISING ADVERTISING AGENCIES $’000s $’000s ORGANISATIONS 21CC Broadcast Productions 2 Broome Advertiser 1 Adcraft Promotional Pty Ltd 3 Derby Visitor Centre 1 Bladon WA 6 Hocking and Co Pty Ltd 1 Carolyn Walker Public Relations Local Business Support and Community 37 2 Services Pty Ltd Corporate Theatre Productions Pty Ltd 1 North West Expo 2 Creative Express 33 North West Telegraph 3 Dingo Promotions 29 Northern Guardian 1 DTZ Australia (WA) Pty Ltd 4 Quality Press 5 Equilibrium 15 Radio West Broadcasters Pty Ltd 9 Essential Projects 165 Rural Press Regional Media 1 Haymarket Pty Ltd 24 South West Printing and Publishing Pty Ltd 1 Imatec Solutions Pty Ltd 7 The Kimberley Echo 1 Impact Communications 33 The West Australian 1 Linkletters 32 The Wheel 1 Marketforce Productions 400 Media Decisions WA 90 Media Monitors (WA) Pty Ltd 1 Polling Organisations Nil Rehame Australia Pty Ltd 55 Westcoast Print and Promotions Pty Ltd 1 Advertising Agencies Total 938 Media Advertising Organisations Total 31

MARKET RESEARCH ORGANISATIONS Direct Mail Organisations Nil Australian Market Intelligence 25

Market Research Organisations Total 25

« « PREVIOUS CONTENTS NEXT « 160 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 161

Major Road and Bridge Projects – completed and in progress

TOTAL COST OF PROJECT EXPECTED ESTIMATED YEAR OF COST TO VARIANCE EXPLANATION OF ROAD PROJECT DESCRIPTION PRECEDING COM- COMPLETE CURRENT $’000 MAJOR VARIANCE ACTUAL YEAR’S PLETION $’000 ESTIMATE $’000 ESTIMATE $’000 $’000 ALBANY RING STAGE 1 CONSTRUCT 2006-07 7 690 14 441 14 441 NEW PROJECT ROAD BROOKTON CORRIGIN- WIDEN EXISTING 2009-10+ 17 284 31 635 27 217 4 418 NOW INCLUDES HIGHWAY HYDEN SINGLE LANE APPROVED SEAL FUNDS FOR COST ESCALATION BROOME CAPE - VARIOUS 2009-10 6 489 17 941 17 646 295 LEVEQUE IMPROVEMENTS ROAD CARNARVON- NORTH WEST CONSTRUCT 2007-08 6 738 24 070 24 070 MULLEWA COASTAL AND SEAL ROAD HIGHWAY- GASCOYNE JUNCTION CERVANTES- LANCELIN- DESIGN AND 2009-10+ 84 056 88 030 68 315 19 715 NOW INCLUDES GREENHEAD CERVANTES CONSTRUCT APPROVED ROAD FUNDS FOR COST ESCALATION DERBY DERBY SPUR WIDEN AND 2008-09 9 742 18 186 16 556 1 630 NOW INCLUDES HIGHWAY SEAL APPROVED FUNDS FOR COST ESCALATION EAST-WEST STAGE 1 CONSTRUCT 2006-07 416 26 766 27 366 -600 HEAVY HAULAGE ROUTE EYRE HIGHWAY CAIGUNA EAST/ RECONSTRUCT 2009-10 22 806 46 485 46 485 NEW PROJECT BALLADONIA GERALDTON- GERALDTON CONSTRUCT 2005-06 37 932 37 661 271 MT MAGNET SOUTHERN ROAD TRANSPORT CORRIDOR (STAGE 1) GERALDTON- GERALDTON CONSTRUCT 2009-10 31 747 31 815 31 815 NEW PROJECT MT MAGNET SOUTHERN ROAD TRANSPORT CORRIDOR (STAGE 2) GIBB RIVER DERBY-GIBB IMPROVE 2009-10+ 15 777 28 590 24 545 4 045 NOW INCLUDES ROAD RIVER- FORMATION APPROVED WYNDHAM AND GRAVEL FUNDS FOR COST ESCALATION GOLDFIELDS LAKE RAESIDE RECONSTRUCT 2008-09 12 781 13 337 11 470 1 867 NOW INCLUDES HIGHWAY INCLUDING APPROVED BRIDGES FUNDS FOR COST ESCALATION GREAT LAVERTON- IMPROVE 2009-10+ 16 265 23 461 19 461 4 000 ADDITIONAL FUNDS CENTRAL DOCKER RIVER FORMATION NOW ADDED FOR ROAD AND GRAVEL 2014-15 GREAT HINES HILL- RECONSTRUCT 2004-05 1 331 16 894 -15 563 WORKS RE- EASTERN MERREDIN PACKAGED FOR HIGHWAY DELIVERY VIA

ALLIANCE CONTRACT « PREVIOUS CONTENTS NEXT « 160 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 161

Major Road and Bridge Projects – completed and in progress (continued)

TOTAL COST OF PROJECT EXPECTED ESTIMATED YEAR OF COST TO VARIANCE EXPLANATION OF ROAD PROJECT DESCRIPTION PRECEDING COM- COMPLETE CURRENT $’000 MAJOR VARIANCE ACTUAL YEAR’S PLETION $’000 ESTIMATE $’000 ESTIMATE $’000 $’000 GREAT KELLERBERRIN- RECONSTRUCT 2007-08 29 266 42 265 42 265 NEW PROJECT EASTERN WALGOOLAN AND WIDEN HIGHWAY GREAT MERREDIN- RECONSTRUCT 2004-05 2 323 13 156 -10 833 WORKS RE- EASTERN WALGOOLAN PACKAGED FOR HIGHWAY DELIVERY VIA ALLIANCE CONTRACT GREAT ROE HIGHWAY CONSTRUCT 2008-09 22 400 24 100 24 100 NEW PROJECT EASTERN INTERCHANGE HIGHWAY GREAT SAWYERS RECONSTRUCT 2006-07 5 137 50 775 34 732 16 043 DELAY TO PROJECT EASTERN VALLEY-THE AND DUPLICATE COMPLETION DATE HIGHWAY LAKES AND ASSOCIATED ADDITIONAL COSTS. ADDITONAL FUNDING APPROVED GREAT BINDOON HILL- WIDEN 2009-10+ 49 873 51 872 51 872 NEW PROJECT NORTHERN NEW NORCIA HIGHWAY GREAT DUNHAM CONSTRUCT 2007-08 21 982 26 410 14 259 12 151 NOW INCLUDES NORTHERN DEVIATION APPROVED HIGHWAY FUNDS FOR COST ESCALATION GREAT FITZROY RECONSTRUCT 2009-10+ 77 581 77 972 12 103 65 869 SCOPE CHANGE TO NORTHERN CROSSING PROJECT, INCLUSION HIGHWAY -GOGO OF TWO BRIDGES AND INCREASED LENGTH FLOODWAYS GREAT MUCHEA- IMPROVE ROAD 2009-10+ 13 459 14 693 14 693 NEW PROJECT NORTHERN BINDOON GEOMETRY HIGHWAY GREAT WADDINGTON- RECONSTRUCT 2009-10+ 24 958 25 275 16 500 8 775 PROJECT BEING NORTHERN MILING REVIEWED AS HIGHWAY A RESULT OF ADDITIONAL FEDERAL FUNDING GREAT ROE HIGHWAY- RECONSTRUCT 2009-10+ 95 638 108 956 35 749 73 207 DELAY IN AWARDING NORTHERN MUCHEA AND WIDEN CONTRACT HIGHWAY RESULTED IN DEFERRAL OF WORKS TO 2006-07 KARRATHA- STAGE 2 CONSTRUCT 2008-09 111 792 125 890 90 500 35 390 NOW INCLUDES TOM PRICE AND SEAL APPROVED FUNDS FOR COST ESCALATION KWINANA INTERCHANGES DESIGN AND 2006-07 108 158 352 158 338 14 FREEWAY AND EXTENSION CONSTRUCT LEACH ORRONG ROAD CONSTRUCT 2006-07 14 515 25 695 25 695 NEW PROJECT HIGHWAY INTERCHANGE MARBLE BAR RIPON HILLS- CONSTRUCT 2005-06 41 852 47 797 -5 945 COONGAN GORGE ROAD SHAW RIVER AND EXCLUDED FROM

PRIMERSEAL SCOPE OF PROJECT « PREVIOUS CONTENTS NEXT « 162 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 163

Major Road and Bridge Projects – completed and in progress (continued)

TOTAL COST OF PROJECT EXPECTED ESTIMATED YEAR OF COST TO VARIANCE EXPLANATION OF ROAD PROJECT DESCRIPTION PRECEDING COM- COMPLETE CURRENT $’000 MAJOR VARIANCE ACTUAL YEAR’S PLETION $’000 ESTIMATE $’000 ESTIMATE $’000 $’000 MITCHELL HODGES DRIVE- CONSTRUCT 2008-09 141 901 171 500 87 495 84 005 EXTENDED PUBLIC FREEWAY BURNS BEACH CONSULTATION, ROAD SCOPE CHANGE AND COST ESCALATION SINCE BUDGETARY ESTIMATE WAS FORMED IN 2003 MOWEN ROAD ROSA BROOK CONSTRUCT 2009-10+ 16 850 20 285 13 985 6 300 NOW INCLUDES ROAD-NANNUP AND SEAL APPROVED FUNDS FOR COST ESCALATION AND EXTENSION IN PROJECT DELIVERY TIME MT MAGNET- - DESIGN, 2006-07 14 63 594 63 594 AGNEW- CONSTRUCT YOUANMI AND SEAL NEW PERTH- SAFETY BAY CONSTRUCT 2009-10+ 471 868 500 000 340 280 159 720 COST ESCALATION, BUNBURY ROAD-OLD AND SEAL CHANGES IN HIGHWAY COAST ROAD TECHNICAL STANDARDS AND CORPORATE POLICY, ENVIRONMENTAL AND SOCIAL SCOPE CHANGES AND UNDER ESTIMATION OF SCOPE OF WORKS AND QUANTITIES OLD COAST AUSTRALIND- CONSTRUCT 2009-10 10 262 10 507 10 507 NEW PROJECT ROAD EATON PERTH STAGE 2 VARIOUS SAFETY 2007-08 3 000 13 079 13 558 -479 METRO- AND NETWORK POLITAN IMPROVEMENTS REGION BIKE PLAN PERTH- BUNBURY PORT CONSTRUCT 2009-10 25 439 26 284 21 224 5 060 CHANGES IN BUNBURY ACCESS AND SEAL PROJECT SCOPE AND HIGHWAY INCLUDING UPDATED PROJECT BRIDGES INFORMATION QUEEN FREMANTLE RECONFIGURE 2009-10 54 728 55 430 55 430 NEW PROJECT VICTORIA TRAFFIC BRIDGE NAVIGATION STREET SPAN REID HIGHWAY WEST SWAN CONSTRUCT 2008-09 32 008 32 566 32 566 NEW PROJECT ROAD-GREAT NORTHERN HIGHWAY ROE HIGHWAY NICHOLSON CONSTRUCT 2006-07 359 32 306 32 601 -295 ROAD-SOUTH AND SEAL STREET INCLUDING BRIDGES ROE HIGHWAY SOUTH STREET- CONSTRUCT 2006-07 969 74 059 70 250 3 809 KAREL AVENUE KWINANA AND SEAL EXTENSION NOT FREEWAY INCLUDING INCLUDED IN BRIDGES ORIGINAL ESTIMATED

PROJECT COST « PREVIOUS CONTENTS NEXT « 162 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 163

Major Road and Bridge Projects – completed and in progress (continued)

TOTAL COST OF PROJECT EXPECTED ESTIMATED YEAR OF COST TO VARIANCE EXPLANATION OF ROAD PROJECT DESCRIPTION PRECEDING COM- COMPLETE CURRENT $’000 MAJOR VARIANCE ACTUAL YEAR’S PLETION $’000 ESTIMATE $’000 ESTIMATE $’000 $’000 ROE HIGHWAY WELSHPOOL CONSTRUCT 2006-07 336 77 276 77 311 -35 ROAD- AND SEAL NICHOLSON ROAD SOUTH BRIDGETOWN CONSTRUCT 2007-08 11 349 11 660 11 660 NEW PROJECT WESTERN INNER BYPASS HIGHWAY TANAMI ROAD - IMPROVE 2009-10 4 291 10 399 10 099 300 FORMATION AND DRAINAGE TONKIN EXTENSION DESIGN AND 2009-10+ 26 485 174 620 174 945 -325 HIGHWAY CONSTRUCT

VARIOUS GRAIN VARIOUS 2009-10+ 8 837 16 707 19 270 -2 563 SCOPE OF WORKS LOCAL ROADS LOGISTICS IMPROVEMENTS AND FUNDING BEING REVIEWED UNDER NEW STATE

AGREEMENT « PREVIOUS CONTENTS NEXT « 164 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 165

Contracts over $1 million

Contract Award Description Contractor Award Value No. Date 0035/05 Construct Albany Ring Road Stage 1 14/02/2006 Ertech Pty Ltd $10 435 629.34

0115/05 Timber Bridge Maintenance and Refurbishment 16/01/2006 BGC Contracting $1 423 415.00 Works -Various Bridges Great Southern Region Pty Ltd 0193/05 Road Widening – Passing Lane Construction 10/02/2006 Highway $2 258 995.12 South Coast Highway Construction Pty Ltd 0196/05 Replacement of Bridge No 564A over Dalyup 14/02/2006 Densford Pty Ltd $2 236 199.00 River West South Coast Highway in the Shire of Esperance 0228/05 Replacement of Four Bridges in the South West 20/06/2006 Jonor Construction $2 108 495.23 Region 0555/04 Reconstruct Bussell Hwy including passing lanes 21/11/2005 Highway $2 901 196.45 and intersection improvements Construction Pty Ltd 0559/04 Refurbishment work to 19 bridges in the South 5/12/2005 Jonor Construction $1 941 023.00 West Region 0056/05 Road Construction, Goldfields Hwy, Wiluna to 27/04/2006 Highway $6 622 339.20 Magellan 618.20 – 625.96 SLK and 636.04 Construction Pty Ltd – 642.96 SLK. 0088/05 Great Northern Hwy, Dunham Deviation 3/05/2006 John Holland Pty $21 229 573.15 Construction of Road and Bridgeworks Ltd 0158/05 Supply of Two Tonne Class Rock Spalls – Great 16/01/2006 Kimberley Quarry $1 354 000.00 Northern Highway Pty Ltd 0221/05 Road Reconstruction, Derby Highway Stage 3 26/06/2006 Highway $4 719 743.60 Construction Pty Ltd 0286/05 Supply of Manufactured Base Course Material 28/04/2006 Kimberley Quarry $1 679 800.00 – Broome Bypass Pty Ltd 0193/04 Alliance Contract for Road Reconstruction, 8/09/2005 ALine East $26 915 420.09 and Overlay, Various Sections, Great Eastern Highway – Tammin to Walgoolan 0172/04 Period Contract for the Provision of Pavement 8/09/2005 ARRB Transport $8 600 000.00 Condition Data Collection and Processing in Research (WA) Western Australia 0079/04 Alliance Contract to Design, Construct and 1/08/2005 Millstream Link $123 767 289.00 Maintain Karratha Tom Price Road Stage 2 0127/03 Landscaping works Dual Carriageway on Great 19/10/2005 Elegant Landscapes $1 706 801.19 Eastern Hwy 0012/05 Construction of three passing lanes and truck 24/01/2006 Works Infrastructure $3 287 482.29 bay on Toodyay RoadSLK 5.50 to SLK 15.77 Pty Ltd 0112/04 Widening/Overlay and Reconstruction, Great 19/04/2006 Highway $4 489 536.19 Northern Hwy Apple St to Warbrook Rd Construction Pty Ltd 0362/04 Wanneroo Rd Upgrade – Clarkson Avenue to 8/08/2005 Densford Pty Ltd $1 834 636.50 Joondalup Drive – Incorporating Joondalup Drive Intersection. 0426/04 Design and Construction of the Leach Hwy/ 28/12/2005 John Holland Pty $21 061 299.00

Orrong Rd Interchange Ltd « PREVIOUS CONTENTS NEXT « 164 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 165

Management Structure

Management Organisational Chart as at June 2006

Executive Director Ministerial and COMMISSIONER Manager Operational Government Business Main Roads Public Affairs Planning and Manager Menno Henneveld Dean Roberts Development Alan O’Brien Mike Wallwork

Executive Director Executive Director Manager Executive Director Executive Director Finance and Executive Director Construction and Executive Director Budget and Road Network Technology and Commercial Organisational Maintenance Major Projects Program Services Environment Services Development Services Management Des Snook Phil Ladner Gary Norwell Peter John Taya John Marmion Woronzow Bob Phillips

Manager Regional Senior Regional Road Project Manager Manager Manager Manager Advisor Manager User and Director Finance and Employee Project Great Network Kimberley Customer (7 positions) Services Relations Programming Southern Development Services

Manager Road and Manager Regional Regional Manager Project Manager Organisation Traffic Budget Manager Manager Traffic and Services Property and Engineering Manager Pilbara South West Safety Manager Management Employee Development Manager Asset and Director Network Manager Regional Regional Manager Heavy Commercial Information Human Program Manager Manager Supply and Vehicle Manager Resource Manager Gascoyne Metro Transport Operations Services Manager Materials Manager Engineering Manager Manager Regional Manager Road Business Management Learning Manager Contracts Network Manager Review and Mid West (4 positions) Operations Senior and Audit Development Engineer Structures Regional Manager Manager Manager Manager Manager Legal and Occupational Regional Business Wheatbelt Commercial Safety and Support Management Manager North Services Health Road Asset Planning

Regional Director Manager Incident Manager Manager Delivery Goldfields- Management Information Strategies Services Manager Manager Management and Projects Esperance Environment

Regional Manager Business Stakeholder Manager Business Wheatbelt Manager Relationship Business Manager

South Manager Performance « PREVIOUS CONTENTS NEXT « 166 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 167

Publications

* Annual Report (latest) Free * Guide to the Management of Roadside Free Advertising

* Customer Service Charter – 2003 Free Guidelines for assessing level of service for Free Cycling, Rev. Nov. 1998

Design of Flood Crossings – 1990 $27.50 Guidelines for Local Area Traffic $88.00 Management – 1990

Distance Book. Ed. 10. – 2006 $11.00 Guidelines for Managing Truck Movements $11.00 in Urban Areas

No. 1 Bitumen Absorption By Sealing Aggregate Free * Sharing the road with trucks: a guide to Free – 2003 assist all road users to drive safely – 2002

No. 3 Surface “Blistering” and Soil “Fluffing” Free Straight Line Kilometres (SLK) Books (for POA – 2003 all areas throughout the State)

No. 5 Interim Guide to Prediction of Pavement Free * Strategic Plan 2003-2007 Free Moisture for Strength of Granular Basecourse and Sub-Base Materials – 2003 No. 6 Guide to the Design of Bridge Approach Free Suppliers Guide: electric wheelchairs and Free Embankments Subject to Inundation – 2003 scooters – 2005

No. 7 Bitumen Scrap Rubber Seals – 2003 Free * Traffic controllers’ handbook. 5th edition Free – 2004

No. 8 Statistically Based Quality Control for Free * Traffic Management for works on roads Free Density in Road Construction (includes Asphalt – Code of Practice – 2004 (only available Surfacing) – 2003 in electronic form) No. 9 Procedure for Thickness Design of Flexible Free Users guide – motorised wheelchairs Free Pavements – 2004 – 2005

Flood Estimation Procedures for Western $27.50 * Utility providers code of practice for Free Australia (Technical Report No. 50T) – 1987 Western Australia – 2002

* A Guide to roadside amenities and rest areas Free Vital Link: A history of Main Roads POA on highways in Western Australia Western Australia 1926–1996, by Leigh Edmonds

*Also available full text on Main Roads Internet home page along with Main Roads standards and specifications. http://www.mainroads.wa.gov.au All prices quoted are GST-inclusive.

POA – Price on application « PREVIOUS CONTENTS NEXT « 166 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 167

Regional Offices and Contact

Feedback and Complaints Head Office Please contact the relevant Main Roads Office. If you When visiting on general business, the address is: are still not satisfied with the service offered, please Don Aitken Centre contact Main Roads’ Customer Advocate. Waterloo Crescent Tel: 138 138 EAST PERTH WA 6004 Email: [email protected] Tel: 138 138 Fax: (08) 9323 4430 Fax: (08) 9323 4430 TTY: (08) 9311 8430 Customer Enquiries Email: [email protected] Call 138 138 Web: www.mainroads.wa.gov.au 24 hrs, 7 days a week When writing, the postal address is: Media Enquiries PO Box 6202 Manager Public Affairs East Perth WA 6892 Tel: (08) 9323 4638 Heavy Vehicle Operations Mobile: 0419 907 230 For information on extra width or heavy load permits: Fax: (08) 9221 0044 or 9323 4623 2 Adams Drive Email: [email protected] WELSHPOOL WA 6106 Emergencies/Traffic Faults Tel: (08) 9311 8450 Please report all missing or damaged signs, traffic signal Fax your application to: faults, street light problems, potholes or traffic accidents Fax: (08) 9311 8455 on freecall Pay by Bankcard, Master Card or Visa. 1800 800 009 (24 hours) For emergencies after hours, phone the Heavy Vehicles Road Condition Report Operations Manager on: Latest information on road and traffic conditions Tel: (08) 9311 8450 throughout the State is available on freecall 1800 013 314 (24 hours) Materials Engineering Branch JJG Punch Laboratory Traffic Issues 5-7 Colin Jamieson Drive Traffic Operations Centre WELSHPOOL WA 6106 Tel: (08) 9428 2222 Tel: (08) 9350 1444 Fax: (08) 9428 2220 Fax: (08) 9451 1400 TTY: (08) 9428 2230 Email: [email protected] Gascoyne Region 470 Robinson Street PO Box 480 CARNARVON WA 6701 Tel: (08) 9941 0777

Fax: (08) 9941 0701 « PREVIOUS CONTENTS NEXT « 168 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 169

Regional Offices and Contacts

Goldfields–Esperance Region Pilbara Region 83 Piesse Street Maxine McGillvray Centre BOULDER WA 6432 Brand Street PO Box 99 PO Box 2256 KALGOORLIE WA 6433 SOUTH HEDLAND Tel: (08) 9080 1400 WA 6722 Fax: (08) 9080 1452 Tel: (08) 9172 8877 Fax: (08) 9140 1076 Great Southern Region Chester Pass Road South West Region PO Box 503 Robertson Drive ALBANY WA 6331 PO Box 5010 Tel: (08) 9892 0555 BUNBURY WA 6231 Fax: (08) 9841 8213 Tel: (08) 9725 5677 Fax: (08) 9725 5666 Kimberley Region Wodehouse Street Wheatbelt North Region PMB 959 Peel Terrace DERBY WA 6728 PO Box 333 Tel: (08) 9158 4333 NORTHAM WA 6401 Fax: (08) 9158 4334 Tel: (08) 9622 4777 Fax: (08) 9622 3767 Kimberley Region Messmate Way Wheatbelt South Region PO Box 138 Mokine Road KUNUNURRA WA 6743 PO Box 194 Tel: (08) 9168 1755 NARROGIN WA 6312 Fax: (08) 9168 1995 Tel: (08) 9881 0566 Fax: (08) 9881 0503 Mid West Region Eastward Road Library Services PO Box 165 For information from Main Roads’ library, GERALDTON WA 6531 contact the Librarian on: Tel: (08) 9956 1200 Tel: (08) 9323 4181

Fax: (08) 9956 1240 Fax: (08) 9323 4430 « PREVIOUS CONTENTS NEXT « 168 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 169

Maps

Map of Western Australian State Road Network « PREVIOUS CONTENTS NEXT « 170 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 171

Maps

Map of Western Australian South West Area Road Network « PREVIOUS CONTENTS NEXT « 170 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 171

Maps

Map of Western Australian Metropolitan Road Network « PREVIOUS CONTENTS NEXT « 172 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 173

Maps

Map of Regional Offices Main Roads manages its business through a head office located in Perth and 9 regional offices located

throughout the State « PREVIOUS CONTENTS NEXT « 172 Main Roads Western Australia Annual Report 2006 Main Roads Western Australia Annual Report 2006 173

Glossary of Terms

Alignment The location/placement of a road in relation to the surrounding environment. Bitumen A viscous liquid or a solid impure mixture, consisting essentially of hydrocarbons and their derivatives, which is used for road surfacing. It possesses waterproofing and adhesive qualities. Bypass An alternative route that enables through-traffic to avoid urban areas. Capital works program A schedule of projects that will increase the State’s asset base through the creation of new assets (new roads buildings, etc), the purchase of equipment and the improvement of existing assets (road widening, passing lanes, etc). Carriageway The portion of a road or bridge devoted particularly to the use of vehicles, inclusive of shoulders and auxiliary lanes. Channelisation A system of controlling traffic by the introduction of an island or islands or markings on a carriageway to direct traffic into predetermined paths, usually at an intersection or junction. Corporate Governance The way Main Roads balances compliance against risk-taking as it directs, controls and is held accountable for its business performance. Culvert One or more adjacent pipes or enclosed channels for conveying a stream below formation level and carrying water under a roadway. Drainage The removal of water by flow from the ground or from its surface. Floodway A longitudinal section or road designed at, or just above, ground level specially constructed to allow the passage of floodwater across it without damage. Freeway A divided highway for through-traffic with no access for traffic between interchanges and with grade separation at all intersections. Highway Highways provide connections between capital cities. They are also principal routes between a city and the major producing regions of the State. Highways also service major transport terminals or significant commercial and industrial centres. Individual Development Plan Supports the ongoing learning and development of employees and provides a framework for performance management. Main Road A principal road in the road system Maintenance The work carried out on an existing road and infrastructure to maintain its efficiency or quality. Median A strip of road that separates carriageways for traffic in opposite directions. Outcome The effects, impacts, results on, or consequences for, the community or target clients of the goods and services (outputs) produced. Output Goods or services, including policy advice, produced for external users. Overlay The addition of one of more courses of pavement material to an existing road surface, generally to increase strength, and/or to improve ride quality.

Overtaking/Passing Lane An auxiliary lane provided for slower vehicles to allow them to be overtaken. « PREVIOUS CONTENTS NEXT « 174 Main Roads Western Australia Annual Report 2006

Glossary of Terms

Pavement That portion of a carriageway placed above the levelled surface or earth or rock for the support of, and to form a running surface for, vehicular traffic. Performance Indicator A simple measure that allows objective comparisons to be made. An example is road maintenance costs per kilometre in a region. This can be compared to other regions and monitored over time. Principal Shared Path Paths which are adjacent to freeways, major highways and rail corridors. These paths cater for pedestrians, including those in wheelchairs, and cyclists. Realignment A change in the geometric form of the original centre-line of a carriageway with respect to the vertical and horizontal axes. Reconstruction Rebuilding of a road. Reconstruction is normally undertaken when a pavement has reached the end of its economic life and where the alignment, or formation height, or width is substandard. Risk Management Procedures to ensure that all risks are considered, evaluated and pre-emptive action taken as necessary. Seal A thin surface layer of sprayed bitumen. Stakeholders Individual or group with a direct interest in Main Roads’ outputs. Strategy This is how a broad objective will be approached. An example is Main Roads’ contracting strategy. It specifies the mix of contract types that will deliver the best outcome for the community. Sustainability The long-term balance of social, environmental and economic factors into an organisation’s activities, decision-making and investment processes. Technical Services Professional services, other than construction and maintenance works, required for maintaining and improving the State Road Network. Term Network Contracts A contract to deliver a set of given services for a defined period. Examples include the ten-year Term Network Contracts to maintain sections of road network and the three-year Term Consultancy Contracts to provide road and structures

technical services. « PREVIOUS CONTENTS NEXT « 174 Main Roads Western Australia Annual Report 2006