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Sustaining Regional Victoria Annual Report

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Sustaining Regional Victoria Annual Report ANNUAL REPORT Sustaining regional Victoria 2009–10 Cover: V/Line Environment Officer Siska Waddington at a native vegetation biosite near Riddells Creek. Contents About us 02 Letter to the Minister 03 Key partnerships 04 Strategic agenda 05 Chairman’s report 06 CEO’s report 08 Year in review 10 Passenger network map 12 Key results 13 Facts and figures 14 Safety and security 16 Our customers 18 Sustainability, environment and community 21 Environment report 2009–10 23 Our people 27 Operations 29 Fleet 31 Infrastructure 33 Victorian rail network map 35 Financial summary 36 Corporate governance 37 Financial statements 42 Disclosure index 72 CONTENTS 1 About us V/Line is Australia’s largest regional public transport ABOUT THIS ANNUAL REPORT operator, serving a record 13.71 million train and coach This is the annual report of V/Line Corporation (formerly passengers in 2009–10. known as V/Line Passenger Corporation) (VLC) and its Each week we operate more than 1400 train services that wholly owned subsidiary, V/Line Pty Ltd (VLPL) (formerly run between Melbourne and: known as V/Line Passenger Pty Ltd). From 1 July 2010, • Geelong (including South Geelong and Marshall) the name changes to VLC and VLPL occurred to reflect our and Warrnambool increased remit to maintain and provide access to the Victorian regional rail network and our role in freight. • Bacchus Marsh (including Melton), Ballarat and Ararat (as well as Maryborough from 25 July 2010) V/Line complies with two sets of governance requirements – those applying to VLC as a statutory corporation and a • Sunbury, Kyneton and Bendigo, Swan Hill and Echuca state business corporation, and those applying to VLPL • Seymour, Albury / Wodonga and Shepparton as an entity incorporated under the Corporations Act 2001. • Traralgon, Sale and Bairnsdale. As a franchisee, VLPL must also fulfil its contractual Almost 600 coach services each week connect with the obligations under the franchise agreement with the Victorian rail network and serve regional Victorian communities Department of Transport (Director of Public Transport). where trains do not operate. Some coach services also V/Line is responsible to the Victorian Minister for Public run interstate to South Australia, New South Wales and Transport and the state’s Treasurer. Canberra. These coaches are operated by the private sector This report provides a summary of V/Line’s key activities under contract with the Department of Transport. and financial performance for the period 1 July 2009 In addition to being a passenger service operator, V/Line to 30 June 2010. Corporation is a not-for-profit corporation under the State VISION Owned Enterprises Act 1992. As part of this, we also provide Connecting Victorian communities and industry. access to, and maintain, 3770 kilometres of broad gauge rail track used by the passenger and freight rail services. MISSION V/Line is also a major employer with a workforce of 1444 To provide value for our customers and community by employees – many of whom live in regional Victoria. delivering safe, reliable, accessible and sustainable passenger and rail freight transport services. VALUES • Put our customers first • Be honest • Take responsibility • Strive for excellence • Treat people and the environment with respect, with safety being paramount in all we do. 2 V/LINE ANNUAL REPORT 2009–10 Letter to the Minister 16 September 2010 The Hon. Martin Pakula Minister for Public Transport Level 16, 121 Exhibition Street Melbourne VIC 3000 Mr John Lenders Treasurer Level 1, 2 Treasury Place East Melbourne VIC 3002 Dear Ministers It is with pleasure that I present the annual report for V/Line Corporation and V/Line Pty Ltd (V/Line) covering the financial year 1 July 2009 to 30 June 2010. The V/Line business continues to be one of regional Victoria’s success stories, each year attracting more people to use trains and coaches as a better travel alternative to the car. This financial year, a record 13,705,843 passenger trips were made on V/Line services – a massive 89 per cent increase in the five years since 2004–05. Together with the state government, V/Line this year showcased its ability to manage major projects on time and on budget with the successful completion of works to return trains to Maryborough on 25 July 2010. This was the largest V/Line-controlled state project delivered to date, and will hopefully be the first of many. A key reason for the ongoing success of V/Line is the support provided by the state government in recent years, which has seen more than 40 new trains join the fleet, record levels of maintenance and track upgrades, and investment in the skills and training of our staff to ensure that we provide the best possible service to regional Victoria. On behalf of the V/Line team, I’d like to pay tribute to your former colleague Lynne Kosky who resigned from parliament in January this year. As Minister for Public Transport for three years she oversaw the most rapid growth in V/Line patronage in the history of Victorian rail. I and the rest of the V/Line team look forward to continuing that impressive trend with your support and that of the rest of government as we embark on one of the biggest infrastructure projects Australia has ever seen – Regional Rail Link. By delivering additional track space for regional trains throughout metropolitan Melbourne, this landmark project will provide the platform for the next era of growth in rail transport. Yours faithfully Frank Tait Chairman LETTER TO THE MINISTER 3 Key partnerships To ensure our successful operation V/Line partners with • Essential Services Commission (ESC) – a number of businesses and stakeholders. administers the Victorian Rail Access Regime Many of these are also based in regional Victoria. • Independent Transport Safety and Reliability Regulator (ITSRR) – administers rail safety regulation in New South • Assetco Management Pty Ltd, trading as Southern Wales (V/Line operates some broad gauge track in Cross Station Pty Ltd (SCSPL) – manager of southern NSW and will operate on the standard Southern Cross Station gauge in Albury / Wodonga in the future) • Australian Rail Track Corporation (ARTC) – access • Metlink / Viclink – call centre and journey planner provider for the main interstate corridors. V/Line will provider as well as advocate for public transport require access to provide the Albury service after the broad gauge line is converted to standard gauge • Metro Trains Melbourne (Metro or MTM) – operator of Melbourne’s suburban electric trains and access provider • Connex – metropolitan train operator and access provider to the metropolitan network from 30 November 2009 to the metropolitan network until 29 November 2009 (succeeded Connex) • Bombardier – manufacturer and maintainer of our • Transport Ticketing Authority (TTA) – responsible for VLocity train fleet developing the new myki smartcard for Victoria and • Councils – V/Line works with regional municipalities manager of V/Line’s ticket agents to meet the transport needs of their communities • Rail freight operators, including Pacific National • Department of Transport (DOT) and El Zorro – users of the regional network ­ – Public Transport Division (PTD): administers V/Line’s • Victorian Managed Insurance Authority (VMIA) – franchise agreement, regional infrastructure lease, provides the majority of V/Line’s insurance requirements subsidy payments, and V/Line branded coach contracts – Infrastructure Projects Division (IPD): • Victorian Government – the Minister for Public implements government rail projects Transport and the Treasurer ­ – Public Transport Safety Victoria (PTSV): • VicRoads – major partner in our work to improve level administers the rail safety accreditation system crossing safety as the authority for main roads ­ – Freight, Logistics and Marine (FLAM): • VicTrack – owner of rail infrastructure which is leased administers government freight policy to V/Line and other operators either via the Director of • Downer EDI Rail (EDI) – maintained our Public Transport or directly. locomotive-hauled and Sprinter fleets and the V/Line also partners with a wide range of suppliers who VLocity fleet as sub-contractors to Bombardier deliver goods and services essential to our business. up to 30 June 2010 4 V/LINE ANNUAL REPORT 2009–10 Strategic agenda V/Line’s STRATEGIC AGENDA V/Line’s OBJECTIVES SaFETY AND SECURITY Continuously improve safety and security in all aspects of our operations and business. RETAIN AND GROW REPUTATION Be trusted to advance and represent the interest and prosperity of regional Victoria. SHAREHOLDER SATISFACTION Be recognised by the government as demonstrating AND FINANCIAL RESPONSIBILITY strong governance, efficient operations and financial responsibility. GROW THE BUSINESS Sustainably grow patronage and freight volumes year-on-year. ‘ON-TIMe’ And ‘in-full’ SERVICE DELIVERY Improve service delivery year-on-year. CUSTOMER SATISFACTION Ensure that our reputation for excellent service contributes to customer satisfaction levels that remain the highest among Victorian transport operators and access managers. EMPLOYEE SATISFACTION AND WELLBEING Be recognised as an employer of choice in the Australian rail industry, with a positively motivated, engaged and skilled workforce. COMMUNITY AND ENVIRONMENTAL RESPONSIBILITY Be a trusted representative of regional communities on transport services that link the state and drives sustainable outcomes. Strategic AGEnda 5 Chairman’s report The announcement in 2008 of the Regional Rail Link project As our data indicates, the global financial crisis impacted was cause for great celebration in my report last year. on public spending and consequently the business saw The $4.3 billion project promises to be one of the biggest a drop in leisure travel in the second half of 2009 as people infrastructure projects Australia has ever seen, constructing in the country cut back on non-essential travel. We saw this up to 50 kilometres of new track and providing regional market bounce back in 2010 as the financial climate settled trains with their own track space in the metropolitan area and people returned to their usual leisure activities.
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