The Hon John Watkins MP Deputy Premier Minister for Transport Minister for State Development Parliament House Macquarie Street Sydney NSW 2000

Dear Minister

It is my pleasure to submit to you for presentation to Parliament the Annual Report for 2004-05 of the Independ- ent Transport Safety and Reliability Regulator (ITSRR), which also includes the Annual Rail Industry Safety Report and the Annual Reliability Report for 2004-05.

The report highlights the signifi cant work undertaken during the year to consolidate ITSRR as a rail safety regula- tor and reliability advisor, including investigative work by ITSRR and the Offi ce of Transport Safety Investigations (OTSI).

The report has been prepared in accordance with the requirements of the Annual Reports (Statutory Bodies) Act 1984, the Annual Reports (Statutory Bodies) Regulation 2000, the Rail Safety Act 2002, the Transport Administra- tion Act 1988 and the Public Finance and Audit Act 1983.

Yours sincerely

Carolyn Walsh Chief Executive

ITSRR Annual Report 2004 - 05 1 Contents

1. Letter to Minister...... 1

2. Chief Executive’s Report...... 3

3. ITSRR Advisory Board Chairman’s Report...... 5

4. About the Independent Transport Safety and Reliability Regulator...... 6

5. ITSRR’s Achievements and Challenges of 2004-05...... 7

6. Overview of Rail Safety in NSW in 2004-05...... 9

7. Governance and Management Systems...... 11

8. About ITSRR’s Executive Management Team...... 15

9. About ITSRR’s Advisory Board...... 17

10. Report on Achievments of 2004-05 Corporate Plan Priorities...... 18

11. ITSRR’s Key Functions...... 19

12. ITSRR’s Organisational Chart...... 20

13. Forward directions - ITSRR Corporate Plan 2005-06...... 21

14. Overview of ITSRR’s Divisions (services, results and forward directions)...... 22

- Transport Safety Regulation Division...... 22

- Service Reliability Division...... 26

- Corporate Strategy Division...... 27

- Business Services Division...... 28

- Offi ce of Transport Safety Investigations...... 30

15. Transport Industry Overview...... 32

16. NSW Rail Industry Safety Report...... 38

17. NSW Transport Reliability Report...... 64

18. Financial Report, including summary...... 90

19. Appendices...... 114

20. Index...... 129

2 ITSRR Annual Report 2004 - 05 Chief Executive’s Report

The Independent Transport Safety NSW Government’s response to and Reliability Regulator (ITSRR) the recommendations in the Final has been operating since 1 January Report of the Special Commission 2004. This Annual Report therefore of Inquiry (SCOI) into the Waterfall provides an overview of the activi- Rail Accident. The Government’s re- ties and achievements of ITSRR for sponse to the Inquiry was released its fi rst complete year of operation. in February 2005. ITSRR published It also incorporates two further the fi rst quarterly report on its reports that ITSRR is required to implementation in April 2005. The present under the Transport Ad- quarterly reports detail the progress ministration Act 1988: the Annual of implementation for each re- Rail Safety Report and the Annual sponsible agency and identify any ITSRR Chief Executive, Carolyn Walsh Transport Reliability Report. slippage in the implementation of the recommendations. By end June During the 2004-05 year, ITSRR 2005, 26 recommendations had focused its activity in the following been verifi ed by ITSRR as having four main areas: safety regulation, been implemented. A further 26 reliability monitoring, communica- recommendations have been noti- tion with the rail industry and fi ed to ITSRR by operators as having capacity building. been implemented. ITSRR has yet In the area of safety regulation, to verify these. ITSRR’s primary role is to administer In 2004-05 ITSRR assisted in the rail safety legislation to facilitate development of further reforms to the safe operation of rail services the rail safety regulation framework in NSW. There are currently 70 rail which culminated in the Transport operators accredited by ITSRR in Legislation Amendment (Waterfall NSW. ITSRR ensures each ac- Rail Inquiry Recommendations) Act credited operator has the capacity 2005. One of the key elements of and competence to safely manage this legislation was the operational its rail operations. This is done separation of the Offi ce of Trans- by conducting compliance audits port Safety Investigations (OTSI) and inspections and following up from ITSRR. OTSI commenced as a with any necessary enforcement separate agency on 1 July 2005. action, including non-statutory notices (e.g. Notices of Emerg- Other major regulatory activities ing Safety Concern, Rail Industry have been the development of the Safety Notices and Information National Accreditation Package Alerts), and statutory notices (e.g. for consistent rail accreditation Improvement Notices and Prohibi- throughout Australia, the introduc- tion Notices). In 2004-05 ITSRR tion of improved medical standards collected monthly, and published for NSW train operating staff, quarterly, data on fatalities, derail- and improved data collection and ments, collisions, broken rails and reporting through the adoption of SPADs (Signals Passed at Danger). consistent data classifi cation of rail incidents across Australia. ITSRR’s safety regulation focus has included monitoring and report- The second main area of activity ing on the implementation of the during the year was the provision

ITSRR Annual Report 2004 - 05 3 of advice on reliability which the positive co-operation of the includes: public transport service rail industry. I have also greatly performance, asset sustainability of appreciated the ongoing support, the Government’s rail businesses, advice and encouragement of the and performance issues in Govern- Advisory Board. ment rail businesses which may indicate potential safety issues. In I thank them all for their work over 2004-05 ITSRR provided advice on the past year, and look forward to the implementation of the RailCorp continuing the task of improving timetable, published its fi rst annual rail safety, and coordinating safety survey of CityRail customers, and across all transport modes. provided advice on the asset sus- tainability of NSW rail operations. Carolyn Walsh The third area of focus was com- Chief Executive munication with the rail industry, operators and unions. In 2004-05 ITSRR held quarterly Executive Safety Seminars, a series of work- shops for industry to explain recent regulatory changes, initiated the publication of an electronic news service entitled “Transport Advisory Weekly;” published a Quarterly Newsletter, and remodelled its website to ensure all relevant information is easy to locate.

The fourth and fi nal activity on which ITSRR focused its activi- ties was capacity building of the organisation. ITSRR completed the recruitment of its full comple- ment of staff. The commitment to ongoing staff development was demonstrated with the training of 26 authorised offi cers, and the pro- vision of support to some 30 staff to undertake a Graduate Certifi cate in Transport Safety at the University of NSW School of Safety Science. ITSRR is also well advanced with the development of information and management systems to support its regulatory functions.

ITSRR’s successes to date are largely due to the skill, dedication and commitment of its staff, and

4 ITSRR Annual Report 2004 - 05 ITSRR Advisory Board Chairman’s Report

Since the Waterfall rail accident Corporation and Queensland As a result, from July 2005, the in January 2003, a great deal of Rail; Board will not advise OTSI on its attention has been paid to enhanc- • ITSRR’s response to investigation reports. The Chief ing safety management skills and the National Transport Executive of ITSRR may, however, expertise across the rail sector. This Commission’s discussion paper continue to seek the Board’s views of course, applies as much to the on risk tolerability in rail safety on OTSI reports in order to provide skills of the safety regulator as it regulation; ITSRR, as the regulator, with advice does to rail operators. in relation to OTSI’s fi ndings and • the review into the Safety recommendations. My colleagues and I on the ITSRR Specialist Competencies and Advisory Board have endeavoured Skills; Finally, I would like to express over the past year to share our • the 2004 CityRail Customer gratitude to my colleagues on the knowledge and expertise with Survey; Board for their continued commit- ITSRR’s management in a way • preparation of advice on the ment and contribution over the which, we trust, is not only enhanc- new CityRail timetable; past year. ing the capability and credibility of • identifi cation of rail safety the rail regulator in NSW, but also priorities; contributing to the development of industry capability. • implementation of the Government’s response to the Ron Christie, AM, BE(Civil), HonFIE Of course, our role is not to Special Commission of Inquiry Aust, FAIM manage the day to day operations into the Waterfall Rail Accident Chairperson of ITSRR, or to make decisions with and ITSRR’s quarterly reports Independent Transport Safety and regard to its statutory functions. on progress; Reliability Advisory Board That is properly the role of ITSRR’s • the scope and methodology Chief Executive and management of audits and compliance team. Rather, we aim to provide inspections of accredited ITSRR’s management with ongoing operators; and access to advice and guidance • analysis of rail industry safety from people who have signifi cant incident data. senior experience in safety and risk management and transport opera- tions. These are people who the The Board has also reviewed and regulator may not normally be able provided advice to the Chief Inves- to have on staff, or may not be tigator of the Offi ce of Transport able to access through consultancy Safety Investigations (OTSI) on its arrangements. investigations into rail, bus and ferry incidents and accidents. During the year, the Board has offered advice to ITSRR about a In June 2005, the Government wide range of issues, including: passed legislation to establish OTSI as an independent agency to • the development of new ITSRR. This was in response to the standards of accreditation Waterfall Commission’s concern under the National to remove any possible perception Accreditation Package; of a confl ict of interest between • the accreditation of operators the ITSRR, its Board and OTSI in in NSW, including the entry the independent investigation of into the NSW industry of transport incidents. the Australian Rail Track

ITSRR Annual Report 2004 - 05 5 About the Independent Transport Safety and Reliability Regulator

ITSRR commenced operations in the rail, bus and ferry transport To deliver these functions, ITSRR January 2004. ITSRR is a statutory modes; and the independent has developed a Results and authority of the NSW Government investigation of rail incidents1. These Services Plan. The Plan includes and in 2004-05, comprised 90 functions are outlined in more a diagram outlining what serv- staff. All of ITSRR’s staff are located detail on page 20. ices ITSRR provides to contribute in Sydney, although a number towards a sequence of results (see travel throughout NSW to conduct In regulating safety, there are three diagram below). The higher the investigations and audit rail opera- separate agencies that each look level of result, the more it relies tors for rail safety purposes. after different modes of public on a number of stakeholders to ITSRR’s principal legislated objective transport – rail, bus and ferry. ITSRR achieve. is to “facilitate the safe operation is responsible for rail safety regula- of transport services in NSW”. tion. The Ministry of Transport is responsible for bus safety regula- 2 In 2004-05, ITSRR had four key tion . NSW Maritime is responsible functions: to regulate rail safety; to for ferry safety. ITSRR and the monitor the reliability of publicly Ministry of Transport report to the funded transport services (rail, bus NSW Minister for Transport whilst and ferry); the strategic coordina- NSW Maritime reports to the tion of regulatory agencies across Minister for Ports and Waterways.

ITSRR RESULTS LOGIC FOR 2005 - 06

NSW Government Priorities The Government’s service delivery priorities for public transport centre around delivering

Safe and reliable transport services in New South Wales

Planned Results for ITSRR ImprovingImproving reliabilityreliability ofof ImprovingImproving safetysafety cultureculture ImprovingImproving riskrisk profilesprofiles (joint stakeholder transporttransport servicesservices outcomes)

Higher RailRail operators operators have have RailRail operatorsoperators havehave aa ConsistentConsistent applicationapplication Intermediate ITSRR identifies and GovernmentGovernment andand thethe effectiveeffective safetysafety continuouslycontinuously ITSRR identifies and ofof safetysafety activityactivity andand Results for alerts rail industry to communitycommunity areare managementmanagement improvingimproving safetysafety alerts rail industry to reportingreporting acrossacross ITSRR (joint potential safety issues informedinformed aboutabout systemssystems cultureculture potential safety issues transporttransport modesmodes stakeholder serviceservice reliabilityreliability outcomes)

Lower Intermediate Joint projects between regulators Rail operators achieve accreditation Non-compliant rail operators Joint projects between regulators Findings communicated to Results for Rail operators achieve accreditation Non-compliant rail operators Operators implement changes to conducted and shared approach to Findings communicated to and comply with conditions of comply with enforcement Operators implement changes to conducted and shared approach to Government and/or and comply with conditions of comply with enforcement safety culture Safety Management Systems across Government and/or ITSRR (linked accreditation action safety culture Safety Management Systems across community in a timely and accreditation action all transport modes in NSW community in a timely and to ITSRR all transport modes in NSW accessibleaccessible manner manner services)

ITSRR’s direct Identification and analysis of Audit, accreditation and Legal and policy advice Identification and analysis of Leadership and ReviewReview and and analysis analysis of of services Audit, accreditation and Legal and policy advice rail safety information and Leadership and Strategic coordination compliance enforcement of rail to Government on rail rail safety information and participation in Strategic coordination issuesissues relating relating to to reliability reliability of of compliance enforcement of rail to Government on rail development of strategies to participation in across transport modes safety legislation safety development of strategies to national rail reform across transport modes public transport (also feeds safety legislation safety address safety issues national rail reform public transport (also feeds address safety issues intointo work work on on safety) safety)

CorporateCorporate performance performance management management (e.g. (e.g. corporate corporate planning planning and and reporting, reporting, Divisional Divisional reporting reporting and and staff staff individual individual performance) performance)

ITSRR’s LiaisonLiaison internally internally and and with with other other regulators, regulators, stakeholders, stakeholders, the the Minister’s Minister’s Office Office and and the the Government Government capacity building services KnowledgeKnowledge and and information information management, management, including including processes processes and and systems systems to to support support this this (e.g. (e.g. data data collection collection and and reporting, reporting, staf stafff training, training, electronic electronic document document management) management)

BusinessBusiness services services (e.g. (e.g. human human relations, relations, occupational occupational health health and and safety safety and and financial financial services) services)

1 With the separation of OTSI from 1 July 2005, ITSRR will only undertake compliance investigations, rather than wide ranging, independent “just culture” investigations. 2. The RTA also regulates buses in its role as regulator of motor vehicles.

6 ITSRR Annual Report 2004 - 05 ITSRR’s Achievements and Challenges of 2004-05

Achievements (e.g. Improvement Notices and they are responsible, and identify Prohibition Notices); any slippage; ITSRR’s primary achievements during • undertaking an active role in • assisting in the development of the period under review was the national reform of rail regulation further reforms to the rail safety fulfi lment of its statutory function of by introducing the National regulation framework which improving rail safety in NSW by: Accreditation Package in culminated in the Transport • accrediting rail operators in NSW, and participating in the Legislation Amendment NSW. There are currently 70 development of national model (Waterfall Rail Inquiry accredited operators. ITSRR legislation, including chairing Recommendations) Act 2005; ensures each operator has the National Rail Safety Package • communicating regularly with developed the capacity and Steering Committee. the rail industry, operators competence to safely manage • implementing mandatory and unions through its revised its rail operations3; guidelines to industry website, newsletters, workshops • monitoring the safety of the about health standards and Executive Safety Seminars; NSW rail system by conducting for train drivers, drug and • recruiting staff with high audits and compliance alcohol testing and fatigue level capabilities, enabling inspections, and collecting management; us to increase our auditing data on, amongst other things, • publishing in May 2005, the and compliance enforcement fatalities, derailments, collisions, fi rst Quarterly Report on the capacity; broken rails and SPADs (Signals Implementation of the NSW • the establishment of ITSRR’s Passed at Danger); Government’s Response function of monitoring the • maintaining compliance with to the Special Commission reliability of public transport the Rail Safety Act 2002 by of Inquiry (SCOI) Final systems and the delivery of issuing non-statutory notices Report. These reports detail several reports on reliability (e.g. Notices of Emerging progress by each responsible issues, for example the survey of Safety Concern Rail Industry agency in implementing the CityRail Customers; recommendations for which Safety Notices and Information • the implementation of Alerts), and statutory notices signifi cant Waterfall Rail Inquiry recommendations such as the development of a comprehensive document and records management system and the operational separation of Offi ce of Transport Safety Investigations (OTSI) from ITSRR; and • the bedding down of the investigations function, which has enabled, the delivery of a number of OTSI reports, including four investigations into rail incidents, two into bus incidents and one ferry incident investigation. ITSRR staff and transport agencies were briefed on proposed national reforms during the year by Carolyn Walsh, ITSRR Chief Executive (third from left at table), with guest speaker Dr Neil Gunningham, Professor, Regulatory Institutions Network, ANU (second from left at table).

3 Accreditation of its own provides no guarantee of safety.

ITSRR Annual Report 2004 - 05 7 Challenges

In making the above achievements, ITSRR faced some signifi cant chal- lenges, including:

• prioritising rail safety risks and identifying the most appropriate strategies to address these; • communicating with a broad mix of stakeholders so they are kept up-to-date with ongoing rail safety reforms at both state and national levels; • the ongoing requirement to monitor and report on the implementation of the NSW Government’s response to the recommendations of the Special Commission of Inquiry Final Report into the Waterfall Rail Accident; and • identifi cation and capture of high, quality data for ITSRR’s new information systems.

ITSRR staff attend a lunch-time session to share corporate knowledge on proposed national rail safety reforms.

8 ITSRR Annual Report 2004 - 05 Overview of Rail Safety in NSW in 2004-2005

A full report on rail safety in NSW Injuries sions were reported in 2004-05. is contained in the ITSRR Annual Three incidents involved track Rail Industry Safety Report, which There were 14 serious passenger maintenance vehicles, one of which is published with this ITSRR Annual injuries reported to ITSRR in resulted in two employees being Report on page 38. This overview 2004-05. This is less than half the taken to hospital with injuries. Five provides a brief summary of longer-term annual average of 37. incidents involved low-speed shunt- selected statistics presented in that The number of public and tres- ing collisions. One collision occurred Industry Safety report. passer serious injuries in 2004-05 as a result of a swinging door on a was consistent with previous years. freight train striking a window on a Fatalities However, the number of serious passing passenger train. employee injuries in 2004-05 was The number of rail-related pas- 13, which is more than double Derailments senger fatalities decreased over the the longer-term annual average of 10-year period to June 2005. In fi ve. These injuries were suffered A derailment is any incident where 2004-05 there was one rail-related in various circumstances by a range one or more wheels of a train or passenger fatality (a passenger fell of employee types including track other type of rolling stock leave the from a platform into the path of workers, train drivers and train rail or track during railway opera- an oncoming train), compared to guards. tion. Like collisions, certain types of an average of four per year at the derailments have the potential to beginning of the period. A rela- Collisions cause serious consequences, such tively high number of rail-related as fatalities and serious injury. passenger fatalities were recorded A collision is an incident where in 1999-00 and 2002-03. These a train4 (or other type of rolling There were a total of 136 derail- were associated with the Glen- stock) strikes another object, (such ments in NSW during 2004-05. brook and Waterfall train accidents as another train, a track obstruction This is down from 149 derailments respectively. or a person) or an object strikes the in the previous twelve months train. and consistent with a longer-term The highest number of overall decreasing trend for this type of fatalities on the NSW rail network In 2004-05 there were 600 colli- rail incident. Derailments occurred was associated with trespassers. sions involving trains, over two- in a range of situations, including Trespasser fatalities are generally thirds of which involved persons running line derailments, shunting the result of intentional acts such throwing stones at trains. Other derailments and derailment of track as suicide, or an unfortunate relatively frequent, but minor machines during maintenance consequence of other activity severity incidents included collisions work. such vandalism or unauthorised with obstructions (mainly trees) and crossing of tracks. While diffi cult collisions with animals. A total of 13 derailments involved to control, trespasser fatalities have trains on running lines. These were There were 30 reported “train to fallen slightly in recent years. The all freight trains and approximately person” collisions in 2004-05 with number of reported passenger, half of the incidents comprised 21 of these resulting in injury or public and employee fatalities in a single wagon derailment. The fatality. In 17 of these incidents the 2004-05 was at, or close to, the remainder of running line derail- collision was with a trespasser. lowest observed over the last 10 ments had more signifi cant conse- quences such as multiple wagon years. A total of nine train-to-train colli- derailments and track damage.

4 Rolling stock refers to the individual pieces of a train, for example, a carriage or wagon. A train is one or more units of rollingstock coupled together.

ITSRR Annual Report 2004 - 05 9 Level Crossing Incidents More than half of these incidents smaller organisations so overall were assigned to a generic category rates are heavily infl uenced by the There were 276 level crossing “other”. This covers a range of testing activity and results of these incidents reported to ITSRR in 2004- defects and circumstances, some larger operators. 05. Most of these involved damage of which have specifi c causes and to level crossing equipment as a consequences, for example, broken In 2005-06 ITSRR will be compil- result of vandalism or road vehicles joints. ITSRR is working with other ing all information from drug colliding with infrastructure. There regulators in Australia to enhance and alcohol quarterly returns and were no incidents involving a train the national classifi cation scheme positive testing notifi cations to striking a person at a level crossing to provide for identifi cation and determine the patterns of detection in 2004-05. However, there were analysis of such incidents. across operators and types of rail eleven incidents where a train safety work. This information will collided with a road motor vehicle. Broken rails were the most be used for comparative assess- One of these incidents resulted in common type of reported track ments and to establish benchmarks both occupants of the road motor irregularity over the 10-year period, for the purpose of identifying any vehicle being taken to hospital with with an average of 120 incidents organisations with an emerging injuries. Another incident resulted in reported per year. The number safety risk associated with drug the death of the driver of the road of broken rails varies with season and/or alcohol use. motor vehicle. This latter incident is because rails are more susceptible the subject of an investigation. The to breakage at low temperatures. other incident notifi cation did not A total of 124 broken rail incidents report any casualties. were reported to ITSRR in 2004- 05. Approximately half of these The number of collisions at passive occurred during the winter months crossings has fallen in the past ten of May, June and July. years and is now similar to that for active crossings5. A contributing Drug and Alcohol Testing factor to this change is attributed to the removal of a number of Over 4,000 drug and 35,000 crossings and the upgrading of alcohol tests were conducted others. Over 20 level crossings have in NSW during 2004-05. The been closed over the past few years, number of tests is expected to and improved level crossing facili- increase in the next year because ties were installed at over 95 sites some operators implemented across NSW in the past two years. their programs in stages in 2004- 05. The overall detection rate - Track and Civil Irregularities the percentage of total tests that yielded a positive result - was Track condition is an important higher for drugs (3.0%) than for indicator of rail safety because alcohol (0.4%). These rates are track-related defects can lead to not necessarily representative of more serious incidents such as train operators or rail safety workers derailments. Over 500 track and in general. Larger organisations civil irregularities were reported conduct many more tests than Reiner Mangulabnan, ITSRR Audit and Compliance to ITSRR during the 2004-05 year. Officer and Kevin Kitchen, ITSRR Manager Audit and Compliance audit rail industry operators to ensure they are meeting their rail safety accreditation requirements.

5 Active crossings have controls (such as lights, bells, booms) and passive crossings use only “Stop” or “Give Way”signs.

10 ITSRR Annual Report 2004 - 05 Governance and Management Systems

ITSRR’s governance struc- The Chief Executive’s strategic advice. These include the: ture decisions are informed by advice, discussions and regular corporate • Corporate Governance ITSRR is managed by its Chief performance reports provided by Committee; Executive. The Chief Executive is the members of the EMT. • Information Management an independent statutory position and Technology Steering which, while accountable to the The Chief Executive can, at her Committee; and discretion, seek advice on rail NSW Minister for Transport for • Strategy Committee. ITSRR’s performance, is independ- safety matters from the ITSRR Advisory Board, which has been ent of Government in relation to The ITSRR Corporate Governance key safety functions. The Chief chaired by Ron Christie since ITSRR’s inception. The ITSRR Committee comprises a cross- Executive is supported by a senior section of ITSRR senior staff. Issues management group, called the Ex- Advisory Board does not review or contribute to management-related considered during the 2004-05 ecutive Management Team (EMT). year included: EMT membership for 2004-05 decisions, but is rather a source of constituted all fi ve Divisional high-level expertise for the Chief • a governance model and its Executives, and the Chief Execu- Executive to draw upon in for- scope; mulating regulatory responses to tive. Profi les of the members are • audit methodology required; complex rail safety issues. Further on pages 15-16. and information on the ITSRR Advisory The EMT meets monthly to review Board membership is provided on • corporate risks. progress towards the achievement page 17 and in the Appendices to of ITSRR’s goals, to assist the this Report. Similarly the Information Manag- Chief Executive make decisions ment and Technology (IM&T) and, where necessary, revise ITSRR has established a number Steering Committee comprises priorities. of internal committees to assist in a cross section of ITSRR senior directing operations and providing staff. Its role is to take a direct and active role in managing IM&T governance at ITSRR. In 2004-05 the committee was primarily concerned with start up and devel- opment activities at ITSRR, such as the development of a corporate database, an electronic document and records management system, and the purchase of suitable resources for fi eld staff.

The Strategy Committee meets as required to consider cross-organi- sational strategic issues over and above those considered regularly by the EMT.

EMT members meet monthly to discuss strategy and review corporate performance. (from The following processes are used left) Colin Holmes, Director Safety Projects, Paul Harris, Director Business Services, Simon Foster, Executive Director, Service Reliability, Mark Buckley, Manager Organisational Develop- by ITSRR to identify and manage ment, Carolyn Walsh, Chief Executive, John Gorman, ITSRR’s Technical Panel and Catherine risks and ensure an effective Herriman, Director Safety Strategy. framework for strategic

ITSRR Annual Report 2004 - 05 11 management of these risks: services in NSW”. activities on the NSW rail industry of NSW. ITSRR communicates with • the corporate planning cycle: During the year ITSRR continued to accredited rail operators in NSW via the advance identifi cation and implement a corporate risk manage- the following means: prioritisation of objectives; ment policy. Each ITSRR division • the corporate reporting cycle: developed its own risk management • audits, both fi eld and desktop; the identifi cation of past plan. These documents are consist- • compliance inspections successes and future challenges ent with Australian Standard 4360: undertaken in the fi eld; Risk Management. to assist future planning of • non-statutory enforcement activities; The six elements which ITSRR uses to and compliance notices (for • implementation of ITSRR’s risk develop and assess its risk manage- example, Notices of Emerging management policy, including ment framework are: Safety Concern, Information the development of risk Alerts & Rail Industry Safety registers; • senior management Notices); • the review of any internal audit commitment and employee • statutory enforcement and fi ndings; participation; compliance notices (for • the review of any external audit • an established organisational example, Improvement Notices fi ndings; and context; and Prohibition Notices); • liaison with ITSRR stakeholders. • a structured and coherent risk • quarterly newsletters; and control framework; These processes are explained • executive safety seminars; below. • the use of business objectives • workshops; to determine Risk Management • the Transport Advisory Weekly; strategies; Corporate planning and • its website: www. • controls linked to business reporting transportregulator.nsw.gov.au; processes and accountabilities; • general reports and In 2004-05 the priorities identifi ed and publications; and in the 2004-05 Corporate Plan • having treatment plans in place were acted upon and reported to reduce risk consequence or • correspondence to individual against on a monthly and quarterly likelihood. accredited rail operators as issues arise. basis. The results of these top level ITSRR continually reviews and priorities are summarised on page re-evaluates the context in 18. For 2005-06 ITSRR has revised which it is managing its risks. its Corporate Plan and refi ned its In assessing risk and developing performance measures and report- appropriate risk control measures, ing framework. A copy of the plan is ITSRR draws as appropriate on on page 21. In 2004-05 ITSRR met internal and external stakeholder its statutory requirement to provide knowledge. its Results and Services Plan (RSP) to Treasury according to the criteria set Stakeholder engagement and on time.

Industry Risk management approach ITSRR considers all 70 of the ITSRR takes a risk-based approach to accredited rail operators in NSW achieving its legislative and strategic to be key stakeholders. Conse- objective to “facilitate the safe ITSRR regularly holds seminars for the rail industry, quently ITSRR has focussed the transport agencies and ITSRR staff to keep them up-to- and reliable operation of transport majority of its communication date with rail safety reforms.

12 ITSRR Annual Report 2004 - 05 ITSRR also engages regularly with • National Transport Commission Safety Regulators’ Panel and an individual operators and industry • Standing Committee on industry association observer. It was associations such as the Australa- Transport established to assist the National sian Railway Association. Transport Commission (the body • Rail Safety Regulators’ Panel. responsible for road, rail and other Government Coordination of Safety transport reform) develop national Regulation model legislation. NSW contributes ITSRR’s stakeholders also extend to actively to this process to ensure other government organisations There are three separate agencies that the high standards set by within NSW, in other states and in NSW responsible for regulating NSW are refl ected in the national territories and in the Common- safety of public transport. ITSRR legislation. wealth Government. For example, is responsible for rail safety regula- ITSRR regularly communicates with: tion, the Ministry of Transport is Financial summary overview • The Minister for Transport responsible for bus safety regula- • NSW Ministry of Transport tion and NSW Maritime is responsi- In 2004-05 ITSRR received ble for ferry safety. consolidated fund allocations of • NSW Maritime Authority $15.171m compared to the budget Through the Transport Regulators • NSW WorkCover allocation of $15.776m. ITSRR also Executive Committee (TREC), ITSRR • Treasury and The Cabinet Offi ce collected $3.591m in fees from works in partnership with the • Independent Pricing and accredited rail operators, which Ministry of Transport and NSW Regulatory Tribunal form part of Crown consolidated Maritime to deliver a coordinated revenue. • Other State and Territory strategic approach to the regula- transport agencies and tion of passenger transport safety. The Regulator’s net cost of service regulators TREC comprises the chief executives (represented by total expenses less • Australian Transport Safety and certain senior executives of total revenue) for 2004-05 was Bureau the regulatory agencies within the $16.502m which was $411,000 • The Commonwealth transport services, ports and wa- more than budget allocation. This Department of Transport and terways portfolios. TREC is chaired increase is attributed to higher staff Regional Services by the Chairman of ITSRR Advisory related on-costs due to a change in Board, Mr Ron Christie. TREC meets • Australian Transport Council accounting standards. When this at least quarterly. increase is excluded ITSRR managed its expenditure to 0.03% of budget. ITSRR regularly liaises with a range of other government agencies, In 2004-05 the surplus from both interstate and intrastate ordinary activities was lower than in the collection and analysis of the budget of $1.15m due to a data with respect to transport reduction in the capital appropria- safety. In that regard ITSRR is an tion. active participant in the national reform process to achieve NSW For a more detailed account of objectives on rail safety legislation. ITSRR’s fi nancial performance, see This includes for example, regular the audited fi nancial statements at liaison with the National Transport the end of this report. Presentation hosted by ITSRR for external Commission. ITSRR also chairs the stakeholders and ITSRR staff by Dr Alan Hobbs from NASA Ames Research Centre, Rail Safety Package Steering Com- who spoke about lessons learnt from the US mittee. This Committee comprises airline industry on maintenance error and safety. representatives from seven states and territories, the chair of the Rail

ITSRR Annual Report 2004 - 05 13 an Equal Employment Opportunity Capacity Building In-house education seminars which involve presentations by ITSRR staff (EEO) Management Plan and work- ITSRR values its staff and has a to share their professional and place policies that detail account- focus on ensuring staff capac- technical knowledge were also abilities for ensuring the absence of ity is maximised. To this end, initiated in 2004-05. This aims to discrimination and harassment. heighten the extent of corporate ITSRR designed and introduced a ITSRR has also completed work- knowledge across the mix of professional development program place policies detailing various regulatory, policy, technical and duting 2004 which was available employment requirements administrative staff within ITSRR, for all staff. The program is a including a Policy for Performance some of whom may have been in post-graduate level qualifi cation Management which introduces the rail industry for many years in Transport Safety. Risk Man- processes to outline performance and others new to the fi eld. In agement was the fi rst subject expectations for staff and ensures the constantly changing transport delivered in the Autumn Semester feedback is provided on results. reform environment, staff have 2005. Other subjects include The central theme of these policies provided positive comment on the Safety Management Systems, and plans is to provide a workplace regular internal briefi ngs. Human Factors in Transport and where staff are valued and their Qualifi ed Auditor in Transport ITSRR values the diversity of its efforts recognised. Safety. staff and advocates equality of The ITSRR EEO Management Plan employment opportunity. It has In 2004-05 ITSRR staff also contains the following objectives: received monthly internal briefi ngs implemented policies including an by the Chief Executive and Division Ethnic Affairs Priorities Statement, • improving access to Heads. information relating to Human Resources policies and practices; “The Risk Management course provided a very good grounding in • creating a diverse and skilled the fundamentals of the risk management process and how this workforce; process can be applied in a range of organisational contexts. The • improving employment access content of the course was found to be highly benefi cial, particularly and participation for EEO in understanding the current best practice approach to risk manage- groups; and ment and how this can be applied to facilitate effective identifi ca- • promoting a workplace culture tion and treatment of organisational risks. displaying fair practices and behaviour. An in-depth understanding of the principles, processes and tools that are required for effective risk management are essential in the accreditation and audit of rail operators, particularly in relation To achieve these activities the to the assessment of the risk management process and proposed EEO plan includes strategies to risk controls, or facilitation of improvements in operator safety ensure equitable representation management systems. In this respect the course content was found of EEO groups in decision-making to be highly relevant to members of the Audit, Accreditation and forums, effective dissemination Compliance Branch who participated, providing a good funda- of information to all staff, and mental understanding of what should be expected from operator equity in training and development risk management systems to improve their safety performance and opportunities. ensure that the risks arising from operation are being appropriately managed.”

ITSRR staff member’s comment on an external risk management course attended by a number of ITSRR staff

14 ITSRR Annual Report 2004 - 05 About ITSRR’S Executive Management Team

The Chief Executive is supported by a senior management group, called the Executive Management Team (EMT). EMT membership constitutes all four Divisional Executives, the Chief Investigator of the Offi ce of Transport Safety Investigations (OTSI) and the Chief Executive of ITSRR.

Carolyn Walsh, Chief Executive Kent Donaldson, Executive Simon Foster, Executive Director, Transport Safety Director, Service Reliability Regulation Divison Division Carolyn Walsh (BEc) has had Kent Donaldson joined ITSRR from Simon Foster (GradDipMangt and extensive experience in the Com- the Transport Safety Bureau of the a Land and Engineering Survey monwealth Government in policy Ministry of Transport. Prior to this, Drafting Certifi cate) brings over development and program imple- Kent held the positions of General twenty-fi ve years of technical and management experience in rail mentation in the areas of small Manager Operations and Safety, areas such as track, fl eet, opera- business (regulation reform, export Australian Rail Track Corporation, tions, stations and communica- programs and access to fi nance), General Manager FAC Operations, tions. He was appointed as ITSRR’s sectoral policies (particularly in Federal Airports Corporation Executive Director, Service Reliability steel, automotive and wood and General Manager, QANTAS in April 2004. paper products), and science and Management Systems and Safety, innovation. QANTAS Airways Limited. Among his career highlights was assignment to the Offi ce of Coordi- From 1996-1999 Ms Walsh was Kent holds degrees of BEc, BSc and nator-General of Rail (OCGR) on its Minister-Counsellor, Industry BSc (Eng) from the University of establishment in June 2000, where Science and Technology, at the New England and the University of he was a member of the team responsible for overseeing fi nal Australian High Commission in New South Wales and is a member preparations for rail services for the London. of the Australian Institute of Sydney 2000 Games. Following the Transport. In 2000 Ms Walsh joined the Games he remained with OCGR and was subsequently part of the NSW Public Service where she was Kent’s duties as Executive Director, team advising Government on Executive Director, Strategy in the Transport Safety Regulation at Offi ce of the Coordinator General the establishment of what is now ITSRR required him to be conver- ITSRR. of Rail. Her responsibilities included sant with all aspects of rail safety coordinating operational and safety in New South Wales and to make Simon has been awarded a Bicen- issues between publicly owned rail recommendations and promote tennial Fellowship in Management authorities in NSW. Ms Walsh also policies to improve rail safety. (the equivalent of a Churchill provided advice in this capacity to Fellowship). the then Department of Transport Kent has now left ITSRR to take Simon has qualifi cations and on the preparation of the Rail up a challenging new opportunity experience as a fi reman on steam with Connex in Melbourne. Safety Act 2002. In January 2004 locomotives and as a second Ms Walsh was appointed Chief person on diesel locomotives on Executive of ITSRR. mainline operations. He also pos- sesses qualifi cations as an Inspector of Permanent Way (Track).

ITSRR Annual Report 2004 - 05 15 Natalie Pelham, Executive Direc- Paul Harris, Director, Business Paul O’Sullivan, Chief Investiga- tor, Corporate Strategy Division Services Division tor, Offi ce of Transport Safety Investigations Natalie Pelham (BSc, MSocSc) Paul Harris (BCom) joined ITSRR has worked in the safety fi eld after many years with StateRail in Paul O’Sullivan is the inaugural since 1994, initially working in a Corporate Human Resources and appointee as the Chief Investigator research unit at the University of Business Services management of the Offi ce of Transport Safety Sydney, followed by seven years roles. Investigations (OTSI) which was with WorkCover NSW where she established by the NSW Government Paul has held various past roles held a number of senior positions. in January 2004. with organisational responsibil- Natalie moved to the transport ity for Human Resource policy Previously he held senior ap- portfolio in 2003 to join the Project development and organisational pointments in the Australian Team advising Government on the change.Prior to his appointment at Defence Force, where his responsi- design and implementation of the bilities included unit and formation ITSRR he managed the centralised new Independent Transport Safety command, individual and collective human resources and accounting and Reliability Regulator. Natalie training, transport operations, function for State Rail. was appointed Executive Director, safety management, emergency Corporate Strategy in April 2004 preparedness and response, accident and is currently completing a PhD in investigation and international public health specialising in public standards. His experience has been policy (regulation) for workplace gained in varied assignments including contingency planning for health and safety. State Disaster Plans; Chair of the Washington Standardisation Offi ce; an accountable commander for Occupational Health and Safety; both prosecutor and defending counsel in Military Courts Martial and President of the Board of Inquiry into the 1996 mid-air Black Hawk helicopter collision.

He holds postgraduate qualifi cations in Organisational Behaviour and is an affi liate member of the International Society of Air Safety Investigators and a member of the Australian Aviation Psychology Association.

Paul will no longer be part of the ITSRR EMT with the separation of 16 ITSRR Annual Report 2004 - 05 OTSI from ITSRR from 1 July 2005. About ITSRR’s Advisory Board

The Chief Executive can, at her implement the NSW Government’s discretion, seek advice on rail safety response to the Waterfall SCOI matters from the ITSRR Advisory Report. The aim of these amend- Board, which has been chaired by ments was to remove any potential Ron Christie since ITSRR’s inception. perception that the ITSRR Advisory Board undertakes a management The ITSRR Advisory Board does function within ITSRR. not review or contribute to management-related decisions, The ITSRR Advisory Board consists but is rather a source of high-level of the Chief Executive and four expertise for the Chief Executive to external members: Ron Christie draw upon in formulating regula- (Chairman), Professor Jean Cross, tory responses to complex rail Rob Schwarzer and Dr Robert safety issues. Lee. A more detailed overview of the Board’s functions and the The ITSRR Advisory Board’s func- qualifi cations and experience of tions were amended by legislation its members, is contained in the in June 2005 to strengthen regula- Appendices to this report. tory independence. This was part of the amendments necessary to

ITSRR’s Advisory Board meets monthly to prepare advice for ITSRR, (from left, Board Members Rob Schwarzer, Carolyn Walsh, Ron Christie (Chair), Rob Lee, and Jean Cross).

ITSRR Annual Report 2004 - 05 17 Report on Achievement of 2004-05 Corporate Plan Priorities

Corporate Plan Priority for 2004-05 Result

Further strengthening of the Regulatory In 2004-05 ITSRR undertook a review of the statutory frame- Model for transport safety work for rail operators and led and contributed to various projects on national rail regulatory reform.

Identifi cation of safety issues and develop- ITSRR has developed a methodology to identify key safety areas ment of strategies to promote and improve on which to focus in the forthcoming year. Priorities for 2005- safety 06 are set out in ITSRR’s Corporate Plan.

Prioritisation and implementation of strat- ITSRR has developed and implemented a regular monitoring egies to meet ITSRR’s responsibility for moni- and reporting framework for the reliability of publicly funded toring the reliability of transport services mass transit systems in NSW.

Establishment and refi nement of forums for ITSRR has established the Transport Regulators Executive Com- consulting with rail, bus and ferry au- mittee; developed MOU’s with other safety regulators (such as thorities, operators and their employees, the WorkCover); and established consultative and working forums community and national transport agencies such as the Executive Safety Seminar series and the Rail Safety Package Steering Committee.

Increasing organisational capability through ITSRR has developed the framework for a Corporate Manage- robust corporate management systems ment System, implemented a professional development program, and invested in information management and technology (IM&T) projects.

Development of a regulatory response to ITSRR has put in place a regular monitoring and reporting the recommendations of the fi nal report of process to ensure that the SCOI recommendations accepted by the Special Commission of Inquiry into the Government are fully implemented. Waterfall Rail Accident (SCOI)

For more detailed information on the above results, see pages 23-30.

18 ITSRR Annual Report 2004 - 05 ITSRR’s Key Functions

• conducting education and ITSRR’s reliability monitoring role awareness activities to assist rail also complements its safety func- operators to understand and tion. By understanding the pres- comply with their obligations. sures on the delivery of services and the management of infrastructure and other assets, ITSRR can identify Reliability Monitoring potential confl icts between service standards and safety. ITSRR has a role in providing advice on the performance of publicly funded transport services in relation to standards set by the NSW Government. ITSRR’s function in respect to reliability relates primarily to monitoring and the prepara- tion of reports to the Minister for ITSRR regulates for rail safety in NSW. Transport and the community, Rail Safety Regulation on reliability of publicly funded transport services. ITSRR is the safety regulator of the NSW rail industry. Regulation of Reliability is defi ned as incorporat- rail safety is achieved through: ing the quality, effectiveness and effi ciency of the service. It includes: • accrediting railway operators’ fulfi lling performance contracts safety management systems to as set by the Government (which During the year, ITSRR released a report on the first independent survey of CityRail ensure they have the capacity are broader than just punctuality customers. to run operations safely; and include conditions on quality of service); ensuring the overall • verifying compliance with Strategic Coordination the Rail Safety Act 2002 sustainability of infrastructure and across Transport Modes and an operators’ terms of networks; and any other matters as accreditation through audits, prescribed by the regulations. ITSRR provides strategic coordina- inspections and investigations; tion and leadership on safety issues In monitoring and reporting on reli- for public transport operations • issuing regulations and ability of publicly funded transport across rail, bus and ferry transport guidelines to rail operators to services, attention is paid to the modes. This involves ITSRR working provide clarity and assistance to following matters: meet their safety obligations; in cooperation with the regulators of buses (Ministry of Transport) and • monitoring the implementation • fulfi lment of obligations under ferries (NSW Maritime) to promote of safety initiatives, safety contracts and arrangements consistency in safety regulation recommendations and safety relating to the provision of when appropriate. Reliability issues actions; services, including timeliness and quality of services; are also considered. • collecting and analysing data from operators to identify • management and A primary mechanism for ITSRR to safety trends and to better administration of infrastructure, share and promote such work is, target regulatory activity; assets, resources and liabilities; through the Transport Regulators • conducting research into safety • customer attitudes and needs; Executive Committee (TREC). issues to identify improvements and Interaction also occurs with other for safety regulation in NSW; • any other matters prescribed by safety-related agencies at the and the relevant regulations. national level, particularly the

ITSRR Annual Report 2004 - 05 19 Australian Transport Council and separation of OTSI and ITSRR on 1 OTSI also manages a Confi dential the National Transport Commis- July 2005. Safety Information Reporting sion, in respect to policy making Scheme for employees of public and the development of national During 2004/05 OTSI undertook passenger train, bus and ferry com- model rail safety legislation. ITSRR “just culture” investigations into panies and freight rail operators. and the Offi ce of Transport Safety serious rail, bus and ferry accidents The Scheme enables employees to Investigations (OTSI) also maintain and incidents and related transport report information regarding safety contact and exchange of informa- safety issues. This function will occurrences and safety concerns tion with the Australian Transport continue to be undertaken by OTSI they may be reluctant to report Safety Bureau and transport safety as a separate organisation. offi cially within their company, or regulators from other states. The purpose of OTSI investigations where they have been unsuccessful is to identify what has occurred, in having previous internal reports addressed to their satisfaction. Investigation why it has occurred and to recom- mend safety actions to rectify In 2004-05 ITSRR had two distinct defi ciencies and prevent recurrence investigation functions. To ensure of similar incidents. OTSI “just compliance with the Rail Safety Act culture” investigations do not 2002, ITSRR undertook compliance seek to attribute blame, but rather investigations and initiated enforce- establish the factors and sequences ment action as a result of investiga- which have contributed to causing tion outcomes when appropriate. the incident. This helps identify This function will continue to be relevant systemic issues that may undertaken by ITSRR following the need to be addressed.

ITSRR’s Organisational Chart

20 ITSRR Annual Report 2004 - 05 Forward Directions

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ITSRR Annual Report 2004 - 05 21 Overview of ITSRR Divisions

The following outlines the services, For an overview of the rail industry To obtain and keep their accredita- key results and forward strategies see the Industry Overview section tion, railway operators must imple- for ITSRR’s fi ve Divisions which on page 32 and for a report on rail ment and maintain comprehensive were the: safety performance, see the Annual risk-based safety management Rail Industry Safety Report on page systems. This includes notifi cation 1. Transport Safety Regulation 38. to ITSRR of any signifi cant changes Division (includes a Technical for its review and approval. Panel); The Transport Safety Regulation 2. Service Reliability Division; Division develops and implements The focus during the 2004-05 year policy and guidance for the rail was on monitoring the progress 3. Corporate Strategy Division; industry, including input to the of RailCorp in achieving its safety 4. Business Services Division; national policy process. Specifi c rail milestones following the granting of 5. Offi ce of Transport Safety safety projects are also undertaken. provisional accreditation; processing Investigations (OTSI). major variations to accreditations; Following a restructure during the and the implementation of the year, the Division has the following With the separation of OTSI to Waterfall inquiry’s recommenda- branches: become a separate statutory tions. authority, from July 2005, ITSRR Signifi cant results of rail will establish an Interagency Transport Safety accreditation services during 2004- Agreement to ensure information Regulation Division 05 included: fl ows between the two agencies continue to occur regularly and as Safety Strategy • managing the accreditation appropriate. of the Australian Rail Track Audit Accreditation Corporation (ARTC) for the 1. Transport Safety and Compliance Designated Interstate Rail Regulation Division Network (the “DIRN”); Safety Projects • varying the accreditations The Transport Safety Regulation of relevant rail operators Division of ITSRR oversees the to implement new Health safety of the NSW rail industry The Division also incorporates a Assessment Standards; and through the implementation of the Technical Panel comprising fi ve • increasing the understanding Rail Safety Act 2002, and associ- staff to provide specialist technical by operators of accreditation ated regulations and guidelines. advice and guidance on technical requirements. standards or processes, such as risk The Act requires all railway opera- management, human factors, and 1.2 Rail Audit tors – which includes organisations the physical infrastructure of the that build and maintain rail network. Once a rail operator is accredited, infrastructure and rolling stock – to ITSRR conducts periodic audits to be accredited by ITSRR. In order to The following activities are based on check the operator’s compliance obtain accreditation, an operator the divisional branch structure in the with its accreditation conditions. must have a suitable risk-based Transport Safety Regulation Division. The fi ndings from these audits safety management system in resulted in actions by operators on: place. ITSRR conducts periodic 1.1 Rail Accreditation audits of railway operators’ safety • change management management systems and under- ITSRR accredits rail operators under • Safety Interface Agreements takes regular inspections of railway rail safety legislation. A list of • risk management procedures. operator premises. ITSRR safety accredited operators of railways in offi cers also investigate reported NSW is provided in Appendix 1. incidents.

22 ITSRR Annual Report 2004 - 05 ITSRR’s accreditation activities as outlined below: ITSRR service 2004 6 2004-05 No. of new accreditations 2 2 No. of ongoing accreditations reviewed 1 5 No. of variations made to accreditations 25 80

As ITSRR’s staffi ng capacity and June 2005. and skill base increases, it expects to • commencement of ITSRR’s A number of workshops and undertake both a wider range and random drug and alcohol forums were held with representa- an increased number of audit and testing regime. ITSRR also tives from a range of rail operators inspection activities. reviewed and assessed 128 who were provided with security drug and alcohol notifi cations, 1.3 Rail Security Audit guidelines and advice in relation to of which fi ve were investigated the changing security environment. ITSRR audits rail operators spe- in detail. cifi cally on rail security to ensure Key results for ITSRR’s rail security rail infrastructure and networks audit activities during 2004-05 1.4 Safety Strategy maximise passenger security. included: ITSRR develops policies, procedures During 2004-05, ITSRR has • the introduction of specifi c and strategies to assist it in comply- participated in the development security requirements in the Rail ing with the Rail Safety Act 2002. of nationally consistent guidelines Safety (General) Regulations; This strategic work also feeds into the national reform process. for the protection of surface • the conduct of 12 rail security transport security. ITSRR was an inspections, identifying relevant Supporting this work in safety strat- active participant in the, Standing issues for the rail operator egy is data management, reporting, Committee on Transports (SCOT) to improve its readiness on and analysis based on investigation Transport Security Working Group network security; and compliance data. ITSRR also and the development of the • participation in nine exercises conducts national and international Intergovernmental Agreement on to monitor government and research into safety issues and cor- Surface Transport Security which industry response to potential rective strategies adopted by other was signed by the Council of threats to network operations; regulators and operators. Australian Governments (COAG) in

During the year, ITSRR issued the following notices:

Type of notice Purpose of notice 2004 7 2004-05

Emerging Safety Concern Requests rail operators to respond to 13 12 a specifi ed hazard Improvement Requires specifi ed remedial action by 57 the rail operator within a specifi ed timeframe Prohibition Prohibits specifi c activities by the rail 039 operator Penalty Imposes a fi nancial cost for the 00 8 breach of compliance

6 Includes only 1 Jan 04 – 30 June 04 7 Includes only 1 Jan 04 – 30 June 04 8 To date ITSRR has focussed on achieving compliance with the Act through a facilitative rather than statutory penalty approach. This is partly a result of assisting operators to initially understand how to comply, as well as the recognition that the range of matters on which a penalty notice may be issued is relatively narrow (see ITSRR’s Compliance and Enforcement Policy).

ITSRR Annual Report 2004 - 05 23 ITSRR was the lead agency in the • working with industry on Inquiry (SCOI) into the Waterfall Rail development of the National Ac- guidance material for drug Accident. creditation Package which updated and alcohol and fatigue The projects undertaken by the existing NSW accreditation proc- management; Safety Projects branch are established esses, providing a comprehensive • providing secretariat support through consultation with the Execu- framework for safety management for the national reform tive Management Team. systems and an audit checklist. process which delivered policy reform for risk management, Signifi cant projects undertaken in the The Safety Strategy Branch also 2004-05 year included: the overview worked closely with industry and safety management systems, of the implementation of the NSW other regulators to undertake a institutional frameworks, fatigue Government’s response to the SCOI review of the requirements for rail management and drug and Final Report into the Waterfall Ac- operators on major health issues in- alcohol prevention programs; cluding drug and alcohol programs cident; train radio communications; • the development and and development of a standard for and management of fatigue. implementation of the emergency evacuation of rolling compliance and enforcement Signifi cant input was also provided stock. to the work of national rail safety manual to promote consistency reform through the National in compliance activity, and Key results for safety projects for Transport Commission and Rail • a policy and process to exempt 2004-05 included: Safety Regulators Panel. certain categories of rail operators from accreditation. • the development and Key results for safety strategy for implementation of a transparent 2004-05 included: 1.5 Safety Projects and rigorous process to •the delivery of an endorsed review and report on the National Accreditation Package, ITSRR has a dedicated team working implementation of the NSW which provides clear guidance on specifi c safety projects. This work Government’s response to on requirements for operators incorporates monitoring the im- the SCOI Final Report into the on accreditation process and a plementation of recommendations Waterfall Rail Accident; framework for the submission arising from signifi cant investigations • the publication of a report titled of safety management systems; such as the Special Commission of “Train Door Emergency Egress and Access and Emergency Evacuation Procedures”. The Report reviewed fi ndings from rail accident investigations that had occurred both within Australia and overseas, and reviewed certain standards that are in place in some overseas countries; and • participation in national forums to ensure the compatibility and interoperability of train radio standards across Australia.

ITSRR participated in inter-agency emergency management exercises during the year

24 ITSRR Annual Report 2004 - 05 Divisional Case Study those timelines put forward by other Executive Safety Seminar to explain agencies for each safety action. These to senior executives of accredited Waterfall Inquiry Implementation must be realistic and achievable and rail companies, the Government’s agreed with the responsible company response to the SCOI Final Report, the Divisional Case Study or agency. A classifi cation system recommendations arising from the Just after 7a.m. on 31 January 2003, based on accepted international prac- SCOI Report and their applicability to a State Rail Authority (SRA) passenger tice was developed to determine the all rail operators, and ITSRR’s expecta- service, travelling from Sydney to Port status of each recommendation. This tions of industry in responding to the Kembla, overturned at high speed and system provides a consistent approach fi ndings of the SCOI. ITSRR also held collided with stanchions and a rock to the verifi cation of submissions and a workshop targeted at safety and cutting approximately two kilometres reporting of actions for close-out. operational managers in rail compa- south of Waterfall NSW. The train was nies. It outlined in greater detail the The verifi cation process for closure carrying 47 passengers and two crew. implications for the rail industry of the of recommendations in most cases As a result of the accident the driver Government’s response to the SCOI involves a fi eld compliance inspection and six passengers were killed. Final Report. and/or audit by ITSRR. Once verifi ca- Following the accident, a Special tion has taken place, the recommen- Commission of Inquiry (SCOI) lead dation status is changed to indicate by retired Supreme Court Justice, the it is “Closed - Verifi ed”. Progress on Honourable Peter McInerney, was actions to close-out these recom- established. The SCOI released its Final mendations is reported to Parliament Report on 17 January 2005. In total each quarter. there were 127 recommendations RailCorp is the operator with account- with an additional 50 sub-ele- ability for implementing most of the ments, each of which requires the SCOI recommendations. RailCorp implementation of a safety action. submitted its fi rst action plan with Consequently, ITSRR is reporting on timeframes to ITSRR on 31 March the implementation of 177 safety 2005. It provides ITSRR with a report Forward directions for actions. and an updated action plan each Transport Safety Regulation To enable this reporting, ITSRR has quarter. Other agencies with account- in 2005-06 developed a comprehensive report- ability for implementing recom- In the 2005-06 fi nancial year, the ing method to follow up on each mendations also provide reports on Transport Safety Regulation Division progress towards implementation. accepted recommendation, as set out will focus its activities in the follow- ITSRR itself is responsible for imple- below. ing areas: menting recommendations from Firstly, ITSRR analysed the SCOI Final the SCOI. The same methodology is • the development of functional Report and determined the action used for all agencies and for ITSRR, to standards for train radio required to implement each recom- assess the status of recommendations communications; mendation and identifi ed which for which they have accountability. • the review and implementation company or agency has responsibility of the NSW Government’s ITSRR has also briefed rail regulators for that action. This formed the basis response to Final Report of the in other Australian jurisdictions for determining whether the response Special Commission of Inquiry concerning industry implementation put forward by a company or agency into the Waterfall Rail Accident; of Waterfall at a national level. satisfi es the recommendation. and ITSRR then assigned indicative ITSRR has also provided information • an analysis of the issues timeframes for actions relating to through seminars and briefi ngs to associated with the introduction its responsibilities and reviewed industry. For example ITSRR held an of technologies for automatic train protection.

ITSRR Annual Report 2004 - 05 25 2. Service Reliability in Government rail businesses via the Survey of CityRail Custom- Division which may indicate potential ers; advice on the proposed CityRail safety issues. timetable; and the Rail Performance The Service Reliability Division To deliver these services, the Divi- Agreement. The Division also monitors and reports on the sion is set up as follows: undertook some monitoring of reliability performance of publicly the Government’s Bus Reforms funded transport services includ- Service Reliability and commenced research into rail ing passenger rail, bus and ferry Division transport performance standards services. Reliability includes all monitoring practices. aspects of transport service quality, Reliability Standards Key results for the Service Reliability not just on-time running. Division in 2004-05 included: Reliability Strategy There are three dimensions to the • RailCorp acceptance of ITSRR Division’s monitoring and reporting Reliability Analysis comments on and analysis of role: and Reporting CityRail reliability; and • advising Government on ITSRR’s reliability function is one of • publication of the fi rst ITSRR performance against the analysis and reporting. ITSRR does Survey of CityRail Customers. standards set out in the not set standards for use in trans- contracts under which the port operator contracts; nor does it Ministry of Transport provides fund the services provided through funding, or grants operating those contracts. rights to transport service providers (rail, bus, and ferry); The Division’s activities during • advising Government on the 2004-05 focused on providing asset sustainability of its rail reports to the community and businesses; and Minister on rail issues. These issues • identifying performance issues included advice on: customer views

Divisional Case Study

Survey of CityRail Customers 2004

In June and July 2004, the Service Reliability Division conducted a survey to identify the service issues of most importance to current and potential CityRail customers. The survey results were released in report form in February 2005.

The survey was the fi rst of a series of independent monitoring surveys ITSRR conducted a survey of CityRail being conducted by ITSRR. It canvassed more than 3000 people in customers in mid-2004 (photo courtesy of Taverners Research Company). suburban Sydney and in regional areas such as the Central Coast, Blue Mountains, Wollongong and the Southern Highlands.

The survey found that train delays and cancellations, punctuality and crowding are the areas of greatest concern to train users. This was not a surprising fi nding given CityRail’s poor on-time running performance. It did note some positive aspects of CityRail services such as information services, removal of litter from stations and politeness and friendliness of station staff.

The results of the survey were positively received by Government and CityRail’s parent company, RailCorp, and will inform their policy and strategy development.

26 ITSRR Annual Report 2004 - 05 3. Corporate During the year the major focus for Key results for the Corporate Strat- Strategy Division the Division included: egy Division in 2004-05 included: • providing legal and policy • implementing a rigorous The Corporate Strategy Division support for State and national internal performance reporting is responsible for legal services, legislative rail safety reform framework; business strategy, strategic informa- processes; tion technology, policy formulation • preparing the fi rst (state and national) and com- • heightening rail safety quarterly progress report munication functions that support awareness with industry, other on implementation of strategic initiatives and decision regulators and NSW agencies recommendations of the making. through ongoing liaison, Waterfall Commission of seminars and publications; Inquiry; Accordingly, the Division is struc- • creating information networks • leading the establishment of tured as follows: for internal staff; ITSRR’s cross-transport agency • establishing a corporate forum (TREC), which achieved Corporate Strategy planning and reporting cycle 80% of its ambitious workplan, Division with an agreed reporting including a review of the framework, including implications from the Waterfall Legal Services developing a Corporate Plan for Inquiry for other passenger 2005-06; transport agencies; Strategic • advising government on Communications • strengthening the data and information capacity of ITSRR the Transport Legislation Amendment (Waterfall Rail Business Strategy and OTSI to support core regulatory and investigation Inquiry Recommendations) Act 2005 which implemented National Policy functions. Co-ordination a number of the key

Divisional Case Study

Website Services

A key vehicle for communication with ITSRR stake- ITSRR’s website on a quarterly basis is below: holders is its website. Since the fi rst quarter of 2005, ITSRR has been sending email alerts to industry with 0Í?Ë7‰Ä‰ÍÄË͝Ë0.--ËÝjMĉÍjËMßË,Ö?ÁÍjÁ a hyperlink to the relevant area on the website that Ôyååå has newly posted material. The link may be to a Ôåååå new report, to a Transport Advisory Weekly, to an !֔MjÁ˝wË ¤yååå Information Alert, or to a press release. ܉ĉÍÄ ¤åååå

yååå

During the 2004-05 fi nancial year ITSRR revised its å website to tailor it to industry needs and to present ,Ï ,| ,¤ ,Ô Ôåå| Ôåå| Ôååy Ôååy the information ITSRR has to offer in a clear, concise 0‰”j and easy to navigate fashion. ITSRR monitors the number of visits to its website and used this informa- tion in planning the revision of its website. As the above graph demonstrates, visits to ITSRR’s In monitoring visits to its website, ITSRR discovered website have doubled in the period from July 2004 that the new method of email alerts to industry to June 2005. In the 2004-05 year the total number signifi cantly increased the level of traffi c to of visits to the ITSRR website was 64,930. its website. A graphical representation of visits to

ITSRR Annual Report 2004 - 05 27 recommendations contained principal legislation; • undertaking mapping of critical the Special Commission of • heightened and tailored business processes; Inquiry Final Report into the communication activities • establishing human resource Waterfall Accident; to support legislative and policies; • providing leadership and policy regulatory functions; • developing training programs; input to the national rail safety • ongoing review of strategic and reform process; coordination of transport • general administrative • managing the IT development safety through the Transport functions covering fi nancial, program, including the Regulators Executive Committee records management and acquisition of an electronic to facilitate information sharing offi ce management. document management on development of policies system, and development of a and guidance for industry and centralised database system to public reporting; Key results for the Business Division in 2004-05 included: manage rail safety information; • consolidation of gains made • achieving positive stakeholder in developing data and • the completion of substantial feedback on communication information systems; and training to upskill and equip services, with a doubling • preparation of necessary staff to undertake regulatory of website patronage from regulatory instruments to functions including compliance last year, (see Divisional Case support implementation offi cer training for all Study on previous page) and of Transport Legislation authorised offi cers; positive feedback from industry Amendment (Waterfall Rail • the commencement of the and agencies on rail safety Inquiry Recommendations) Act Professional Development seminars; 2005 including regulations Program in Transport • completing the legislative for notifi able occurrences and Safety with some 30 staff review required under implementation of the National participating; section 42W of the Transport Accreditation Package. • the development and Administration Act 1988 which implementation of important was tabled in Parliament in 4. Business Services human resource policies, June 2005. Division including performance development, equal Forward directions for the The Business Services Division employment opportunity, Corporate Strategy Division provides the administrative, harassment, occupational in 2005-06 fi nancial and human resource serv- health and safety and learning ices required for ITSRR to operate In the 2005-06 fi nancial year, the and development; effectively. The Division undertakes Corporate Strategy Division will • the recruitment of staff to record and document management focus its activities in the following a range of different roles to and manages employee relations, areas: ensure capacity to deliver including personnel policies, indus- required results; and • reporting on the trial arrangements and the learning • fi nalisation of the framework implementation of the NSW and development function. for the Corporate Management Government’s Response to During the 2004-05 year, the Busi- system in alignment with ISO the SCOI Final Report into the ness Services Division focused its 9001:2001. Waterfall Accident; activities in the following areas: • continuing participation in the national reform process, • developing a centralised with a focus on developing document management regulations to support the system;

28 ITSRR Annual Report 2004 - 05 Forward directions for 2005- 06

In 2005-06 Business Services Divi- sion will focus its activities in the following areas:

• effective management of staff and associated training and development requirements; Mr Ron Christie, Chairman of ITSRR Advisory Board • the fi nalisation and deployment presenting Authorised Officer certificate to Steven Ford, of the Corporate Management Senior Audit & Compliance Officer System; • the full operation of the electronic document management system; • the development of a strategy to address the information contained in critical paper fi les to ensure continued access via electronic means; and • fi nancial management including management of capital allocation and assets. ITSRR Authorised Officers at graduation presentation .

Divisional Case Study

Electronic Document Management System

In 2004-05, the Business Services Records Unit worked to deliver an electronic document management system to ITSRR that would manage records, reviews and approvals all within the same application.

Substantial work was conducted in ensuring the smooth transition from the current records system and to ensure the new system was confi gured to comply with the document management standards and approval policies already in place.

Deployment of the system is due to commence in August 2005. Confi dence of a successful deployment is high due to the diligent manner in which application and business process interface protocols were tested in the development phase.

ITSRR Annual Report 2004 - 05 29 5. Offi ce of Transport and safety concerns they may be for ITSRR and OTSI by the School Safety Investiga- reluctant to report offi cially within their of Safety Science at the University tions (OTSI) company, or where they have been of New South Wales; unsuccessful in having previous internal •the acquisition of “Tools of reports addressed to their satisfaction. Trade” equipment kits for each OTSI undertakes investigations into The guiding principles for the Scheme investigator, including “confi ned serious rail, bus and ferry accidents and are that it is voluntary, confi dential space” detection kits; incidents and related transport safety and non-punitive. These activites are • the ratifi cation of the incident issues. OTSI investigations do not seek refl ected in the table below. reporting system for rail, bus to attribute blame, but rather establish and ferry operations which now the factors and sequences of events Key results for OTSI in 2004-05 represents a comprehensive and which have contributed to causing included: effective process with a clear the incident. They may contribute to distinction between those matters identifying systemic issues that need to • the completion of recruitment which are reported to OTSI and be addressed. of Transport Safety Investigators. those which go to the regulators; All investigators completed the • the review, test and validation of OTSI also manages a Confi dential in-house Human Factors and Standard Operating Procedures Safety Information Reporting Scheme Investigations Techniques training for the deployment of OTSI for employees of public passenger package, in addition to the investigators to accident sites and train, bus and ferry companies and mandatory safety qualifi cations the techniques for “at scene” freight rail operators. The Scheme for rail safety offi cers, and fi ve of information gathering; enables employees to report informa- the investigators are undertaking tion regarding safety occurrences the industry graduate program in • in-house training in report Safety Science being conducted writing and the standardisation

OTSI investigations 2004-05 2004-05 action 2004 OTSI 9

No. of OTSI Investigations Initiated Completed Initiated Completed Rail 5 1 7 4 Bus 2 - 2 2 Ferry 3 2 2 1 Total 10 3 11 7 No. of Rail Operator Investigation Reports na 25 na 79 (and 149 reviewed by OTSI (s66 Rail Safety Act 2002) legacy reports)10 Total CSIRS reports received by OTSI na 54 na 72 No. of CSIRS Safety Valve Notices11 issued to operators na 17 na 41 CSIRS action completed and case closed Rail na 25 na 80 Bus na 6 na 3 Ferry na - na 3 Total na 31 na 86

9 Includes only 1 Jan 04 - 30 June 04. 10 Report inherited from the previous rail safety regulator. 11 Similar to a Notice of Emerging Concern.

30 ITSRR Annual Report 2004 - 05 of the format and presentation of Divisional Case Study OTSI reports; and • contribution by OTSI to Review of Shunting Safety Procedures the review of the Waterfall On 1 July 2004, a shunter was fatally injured when he fell through Special Commission Of Inquiry the skeletal decking of a fl at top container wagon during shunting recommendations and provision operations in the Port Botany Yard. of proposals for amending legislation and regulations, The factor which contributed most signifi cantly to this tragic accident particularly in relation to the was the absence of any safety restraining device or protection which functional responsibilities of the would have prevented the shunter from falling from the wagon. independent Chief Investigator Factors which contributed to the accident included the lack of speci- and the establishment of boards fi ed procedures for riding on wagons and the absence of training in of Inquiry. acceptable shunting practices.

Forward directions for OTSI in Among the 15 safety actions which were identifi ed to prevent recur- 2005-06 rence, it was recommended that competencies for shunting should be formally established and training of shunting staff should be carried As a result of the recommendations out in accordance with defi ned procedures that are then subjected to of the Waterfall SCOI, the following a system of regular worker supervision to improve understanding and matters will attract OTSI priority in compliance. 2005-06:

• reorganisation of the investigation and administration structures of the Offi ce; • relocation of the Offi ce to new premises, confi gured as an operational base for transport safety investigations; and • establishment of MOUs with regulators, police and emergency services to enhance OTSI’s investigatory capability.

In addition, to ensure effective reme- diation of transport safety defi ciencies, OTSI will focus on:

• timely notifi cation of safety critical information to regulators, operators and Government; • timely completion of accident investigations and submission of reports; and The Office of Transport Safety Investigation (OTSI) investigated a derailment at Bethungra, • analysis of transport safety NSW that occurred in December 2004. incidents in other jurisdictions to inform the rail industry in NSW of relevant trends and remedial action.

ITSRR Annual Report 2004 - 05 31 Industry Overview

Rail Sector Infrastructure developments The Clearways project is being in 2004-05 managed by the Transport Infra- structure Development Corpora- Introduction In the year to 30 June 2005 con- tion (TIDC) in conjunction with siderable structural changes in the RailCorp. TIDC is a State-owned In NSW there are about 60 million management of rail infrastructure Corporation, which has been train kilometres travelled by pas- in NSW have been implemented. established to develop major senger and freight trains each year. transport infrastructure projects for The non-metropolitan interstate This represents about one-third the NSW Government. Substantial and Hunter Valley rail lines previ- of all train kilometres travelled in work has been completed during 12 ously under the control of the Rail Australia . 2004-05 on the Bondi Junction Infrastructure Corporation (RIC) Turnback which is one component These journeys traverse about were leased to the Commonwealth- of the Clearways Plan. 8,500 km of track and associated owned Australian Rail Track Corpo- infrastructure such as stations, ration (ARTC) in September 2004. Other major metropolitan NSW bridges and supporting struc- rail infrastructure projects which RIC continues to manage the tures, tunnels, overhead wiring, have progressed during 2004-05 remaining non-interstate, non- signalling, communication and include completion of tunnelling Hunter Valley regional rail network, train control systems. There is an for the Epping to Chatswood line; and contracts ARTC to provide additional 1,200km of track which completion of the Macdonaldtown maintenance services and the is not operational. turnback; fi nalisation of a Develop- network control function. ment Application for a transport Around 1,760 km of the NSW rail interchange at Chatswood station; network is electrifi ed including A detailed infrastructure investment and commencement of work on for the Sydney Metropolitan Area, program is an integral component the Parramatta station upgrade. Central Coast, Blue Mountains and of the lease arrangement with Illawarra. This part of the network ARTC. In the fi rst half of 2005, is owned and maintained by planning commenced on a four- Passenger Rail Services RailCorp. year upgrade of the north-south rail network which includes the RailCorp is the major provider The NSW Rail Safety Act 2002 main rail corridors from Brisbane to of rail passenger services in the covers all railway operations within Sydney, and Sydney to Melbourne. Sydney metropolitan area via NSW, including: its CityRail business unit, and in The changes are part of the inte- regional NSW through its Coun- • metropolitan, regional and gration of NSW into the national tryLink business unit. interstate rail passenger rail network to create a unifi ed services; freight rail network from Western The CityRail fl eet carries over 265 • passenger services on self- Australia to Queensland. million passenger journeys each enclosed networks such as year. On an average weekday there In metropolitan Sydney, the NSW Sydney Light Rail and Monorail, are about 2,600 services carrying Government Clearways Plan is a $1 and Perisher Blue Ski-tube; over 900,000 passenger journeys billion initiative to increase capacity from 306 stations. • freight rail services; and service reliability and frequency • heritage railway operators and on the Sydney rail network. The The CountryLink fl eet carried some railway museums; and project will create fi ve separate 1.9 million passenger journeys (in • NSW-based manufacturers, clearways from the existing 14 2004-05) to regional NSW and constructors and maintainers interconnected metropolitan rail interstate destinations. of rail infrastructure and trains lines. (including rolling stock).

12 Australian Transport Safety Bureau’s rail transport activity in Australia 2003 data.

32 ITSRR Annual Report 2004 - 05 Great Southern Railway Ltd, operates the Sydney Monorail from Freight Rail Services operator of the Indian Pacifi c, also Darling Harbour to the Sydney provides an interstate passenger central business district carrying Rail is a signifi cant mode of freight service between Sydney and Perth. around 2.7 million passenger transport in NSW and the number journeys per year. of freight movements is increasing Outside of the main NSW network, each year13. The haulage of coal but covered by the Rail Safety Act The Perisher Blue Skitube alpine in the Hunter Valley is the single 2002, are other passenger rail railway transports passengers largest freight task in NSW. Of services on self enclosed networks. 8.2km from Bullock’s Flat (the the 90 million tonnes of freight The Connex operated Sydney main car park) into Perisher Valley hauled in NSW, some 74 million Light Rail consists of around seven and Blue Cow Mountain resorts was coal14. Other rail freight kilometres of track and 14 stations during the ski season. Six kilome- services operating in NSW include from Lilyfi eld to Central Station. It tres of the track is underground, the transport of general freight carries about 2.5 million passenger making it one of the longest train interstate and between major journeys each year. Connex also tunnels in Australia. metropolitan and regional centres,

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13 Australian Bureau of Statistics. Rail Freight Movements, Australia. 14 Rail Infrastructure Corporation Annual Report 2003/04

ITSRR Annual Report 2004 - 05 33 and the transport of grain and provided by major operators, there operates Green Square, mineral products to manufacturing is substantial outsourcing across the Mascot, Domestic Terminal and and port facilities. industry of infrastructure and rolling International Terminal stations; stock services to contracted service and In 2004-05 there were sixteen providers. • Star City Pty Ltd - and which accredited freight rail operators maintains the light rail station in NSW. Notable developments Accredited railway infrastructure at Star City Casino. were the acquisition of Freight contractors include: Australia by Pacifi c National (PN) in August 2004 and preparation for • major civil construction and Several manufacturers and main- the commencement of operations engineering contractors such tainers of rolling stock are also in the Hunter Valley by Queensland as John Holland Pty Ltd, and accredited including: Rail National (QRNational) Coal and Barclay Mowlem Construction Freight Division scheduled for July Ltd; • major manufacturers United 2005. • organisations involved in Goninans Ltd, and EDI Rail Ltd; the construction of major • rolling stock suppliers and In addition to operators whose infrastructure such as the Thiess lessors such Chicago Freight Car core business is rail freight such Hochtief Joint Venture for the Leasing; and as Pacifi c National, Queensland Chatswood-Epping rail link; and • rolling stock maintainers and Rail, Silverton Rail and Lachlan • specialist engineering refurbishers such as Bradken Valley Freight, many accredited contractors such as Alstom Rail (Mittagong), Pacifi c Rail operators are industrial companies Transport Australia Ltd and Engineering and Rail Fleet such as Grain Corp, Blue Scope Speno Rail Maintenance Services. Steel, Manildra Group and Blue Australia. Circle Southern Cement, where the Heritage Railway Operators railway is a component of their overall operations. A proportion of Private sector operators of railway stations that do not operate trains In 2005 the NSW railways cel- these railways are isolated from the ebrates 150 years of operation main railway line. are also required to be accredited. These include: since the fi rst railway line between Sydney and Parramatta opened in Infrastructure and rolling • Airport Link Pty Ltd – which 1855. stock service providers

According to the Rail Safety Act 2002, organisations that manufac- ture, construct or maintain railway tracks, other rail infrastructure or rolling stock are defi ned as “railway operators” and are required to be accredited.

In 2004-05 there were 15 accred- ited manufacturers/constructors or maintainers of infrastructure or rolling stock.

RailCorp and ARTC are the largest maintainers of rail infrastructure.

In addition to the in-house facilities Allan McVay, Accreditation & Compliance Officer, inspecting a heritage train at Branxton.

34 ITSRR Annual Report 2004 - 05 There is a range of heritage Bus Sector administered by the Roads and railways in NSW that make an Traffi c Authority of NSW (RTA) as important contribution to regional the principal road safety regulator. tourism and the cultural heritage Introduction of NSW. Most of these rely on A regular passenger bus service is the input of volunteer workers, The bus industry comprises one which is conducted according many of whom are current or past privately owned operators and to regular routes and timetables, rail industry employees. Heritage the Government’s State Transit but does not include long-distance railways are required to maintain Authority (STA). Private operators services (a long-distance service accreditation under the Rail Safety generally service western and outer is one in which all passengers are Act 2002. metropolitan Sydney, and rural conveyed more than 40 kilome- and regional NSW. STA operates tres). The service contract regime Heritage railways that have services in inner and eastern does not apply to tourist services operated services on the mainline Sydney, the Northern Beaches and charter services. during 2004-05 include: and Newcastle. STA also operates The legislative framework com- services on the Liverpool/Parramatta • 3801 Limited prises two key elements: transit-way by means of a subsidi- • Australian Railway Historical ary corporation – Western Sydney • operators of all categories of Society (ACT Division) Buses. bus services must be accredited • Lithgow State Mine Heritage by the Director-General of the Park and Railway Legislative Framework Ministry of Transport; and • NSW Rail Transport Museum • regular passenger bus services • The Rail Motor Society . Public passenger bus services are may only be operated under regulated under the Passenger the authority of a service Those heritage railways that have Transport Act 1990, which es- contract between an accredited operated services on isolated lines tablishes an economic regulatory operator and the Director- during 2004-05 include: regime for the provision of regular General of the Ministry of passenger bus services. In addition, Transport. • Campbelltown steam museum like all road users, bus operators • Cooma-Monaro railway are subject to safety legislation, • Glenreagh Mountain Railway • Illawarra Light Railway Museum • Millennium Parklands Railway • Richmond Vale Preservation Co-op Society Ltd • Zig Zag Railway.

Accreditation status is also main- tained by the Powerhouse Museum and various regional railway museums, and organisations involved in the maintenance and restoration of rolling stock used by heritage railways.

Regulation of the bus industry primarily lies with the Ministry of Transport. ITSRR works closely with MoT on safety issues affecting both rail and buses.

ITSRR Annual Report 2004 - 05 35 Bus Reform on 7 August 2005, that nearly all of the metropolitan area is now Until recently, legislation set up covered by the new contracts. two types of bus contracts, com- mercial and non-commercial. The In relation to ITSRR’s reliability func- non-commercial contracts primarily tions, relevant bus issues include: referred to school bus services. • changes to contract standards Under a non-commercial contract, including new performance bus operators are contracted for a measures and performance fi xed price to provide services (in based incentives; a region or along a line of route). • twice yearly surveys by the However, in practice, non-commer- Ministry of Transport (the cial contracts apply only to school Ministry) of bus service quality student travel. Funding for these as part of the incentives regime; services is derived from the Ministry • an operational performance of Transport’s School Student regime introduced by the Transport Scheme (SSTS) in accord- Ministry; ance with a funding model based on specifi ed eligibility criteria for • new reporting systems from student participation. Non-com- bus operators to the Ministry, mercial contracts have generally including the use of electronic only been entered into in country technology; and areas or for “village to town” type • a request from the Independent services. Pricing and Regulatory Tribunal for ITSRR to comment on bus Under the bus reform being intro- reliability for its review of bus duced by the Ministry of Transport, and ferry fares to apply from only one type of contract will exist 2006. in the future.

Both commercial and non-commer- cial contract models incorporate specifi ed minimum service levels which apply to the contracted services.

Substantial reform of the bus sector commenced in 2004-05 following the Government’s response to the Review of Bus Services in New South Wales (Unsworth 2004). This response, including legislation, allows for new contracts. The contracts are being progressively rolled out, fi rst in the Sydney metropolitan area, and then in regional NSW. The Minister for Transport announced

36 ITSRR Annual Report 2004 - 05 and charter services.

Ferry Sector The legislative framework requires that regular passenger ferry services Introduction may only be operated under the authority of a service contract Carrying around 14 million passen- between an operator and the gers per annum, Sydney Ferries16 Director-General of the Ministry is the main provider of regular of Transport. However, it does passenger ferry services on Sydney not require ferry operators to be Harbour. State Transit also oper- accredited. Rather, fi tness and ates a service in Newcastle while character and fi nancial viability a range of regular passenger ferry matters are dealt with under the services are provided by private service contract regime, and safety operators in areas such as Sydney regulation is principally the respon- Harbour, Pittwater, Port Hacking sibility of NSW Maritime. and the Clarence River. As with buses, the legislation Safety regulation of the ferry sector provides for two types of service lies with NSW Maritime, with ITSRR contracts: commercial and non- providing a strategic coordination commercial. However, in practice, role. non-commercial contracts have not been used for procuring ferry Legislative Framework services.

Both commercial and non-commer- As with bus services, public pas- cial contract models incorporate senger ferry services are regulated specifi ed minimum service levels under the Passenger Transport which apply to the contracted Act 1990, which establishes an services. economic regulatory regime for the provision of regular passenger ferry services. In addition, like all waterway users, ferry operators are subject to marine legislation, which is administered by the NSW Maritime Authority as the principal marine safety regulator.

Again, as with regular bus services, a passenger ferry service is one which is conducted according to regular routes and timetables, but does not include a long-distance service. The service contract regime does not apply to tourist services

Regulation of the ferry industry primarily lies with NSW Maritime. ITSRR works closely with NSW Maritime on safety issues affecting both rail and ferries.

16 Sydney Ferries was a division of STA until 30 June 2004 when it was established as a separate State Owned Corporation.

ITSRR Annual Report 2004 - 05 37 NSW Rail Industry Safety Report

Contents

1. Introduction...... 39

2. Rail Safety Statistics...... 40

2.1 Fatalities on the NSW Network...... 40

2.2 Injuries on the NSW Network...... 42

2.3 Collisions on the NSW Network...... 44

2.4 Derailments on the NSW Network...... 46

2.5 Level Crossing Incidents on the NSW Network...... 46

2.6 Track and Civil Irregularities on the NSW Network...... 50

2.7 Drug and Alcohol Testing...... 51

3. Major Rail Inquiries...... 53

4. Major Rail Incident Investigations...... 55

4.1 Incident Investigations Completed...... 55

4.2 Incident Investigations In-Progress July 2004 to June 2005...... 56

5. Rail Safety Standards and Guidelines...... 58

5.1 State Legislation, Regulations and Guidelines...... 58

5.2 National Initiatives...... 59

6. Signifi cant Rail Industry Safety Initiatives...... 61

6.1 Rail Network Vulnerability Analysis...... 61

6.2 National Accreditation Package...... 61

6.3 Emergency Evacuation of Rolling Stock...... 62

6.4 Train Driver Safety Systems and Automatic Train Protection...... 62

6.5 Train Radio Communications...... 63

38 ITSRR Annual Report 2004 - 05/Safety Report 1. Introduction

The Rail Safety Act 2002 requires investigations completed, or in the Independent Transport Safety progress, during the year ;

and Reliability Regulator (ITSRR) to • Major Rail Incident Investigations submit an annual Rail Industry Safety (Section 4) – progress on Report to the NSW Minister for recommendations from the Transport. This is the second annual Special Commission of Inquiry Rail Industry Safety Report produced into the Waterfall Rail Accident; by ITSRR since its establishment in • Rail Safety Standards and January 2004. The principal role of Guidelines (Section 5) this report is to summarise key issues – amendments to rail safety and developments in NSW rail safety legislation and related guidelines; for the period July 2004 to June and 2005. • Key Safety Initiatives (Section The 2004-05 year was notable for 6) – a description of important signifi cant changes in both the projects to improve rail safety on management and reporting of rail the NSW rail network. safety in NSW. The Final Report of the Special Commission of Inquiry Copies of this report are available into the Waterfall Rail Accident was from the ITSRR website at www. released in early 2005 and Govern- transportregulator.nsw.gov.au ment and industry made consider- able progress in implementing its many recommendations to improve rail safety.

NSW also made important changes to the way in which it classifi es and reports rail safety incidents. These changes will, over time, improve consistency in safety reporting and allow exchange of important rail safety information between safety regulators.

This Rail Industry Safety Report sum- maries rail safety issues for 2004-05 under fi ve themes:

• Rail Safety Statistics (Section 2) – summary data for important rail safety incident categories, with reference to historical records; • Rail Safety Inquiries Investigations (Section 3) – NSW accident

ITSRR staff regularly inspect rail infrastructure to ensure it meets safety requirements.

ITSRR Annual Report 2004 - 05/Safety Report 39 2. Rail Safety Statistics

Section 64 of the Rail Safety Act task to reclassify its entire historical largely refl ects a change in the 2002 requires accredited1 railway incident record (over 60,000 reports) number of health-related fatalities operators to notify ITSRR of all according to the new scheme. For such as heart attack and substance safety-related rail incidents on the the vast majority of incidents this was abuse, which accounted for approxi- NSW rail network. This section of the a straightforward process. However, mately 60% of all passenger fatalities report presents summary statistics the quality and type of information over the 10- year period. The number for selected types of safety incidents collected under the former NSW of rail-related passenger fatalities classifi cation scheme was variable occurring on the network. It focuses also decreased slightly over the same and sometimes insuffi cient for the period. The relatively high number on incidents with potential to lead to purpose of reclassifi cation to ON-S1. of rail-related passenger fatalities in serious consequences such as injury ITSRR is partway through a process 1999-00 and 2002-03 is associated and fatality. to validate the reclassifi cation of with the Glenbrook and Waterfall The way in which rail safety incidents historical incidents on a record-by- train accidents respectively. are classifi ed for analysis changed in record basis. Historically, more than 75% of public January 2005 when NSW adopted As a consequence of the these fatalities involved incidents at level a new national rail incident clas- changes, the type and number of crossings. Most of the remainder sifi cation scheme (ON-S1). The incidents summarised below may were health-related incidents, ON-S1 scheme is part of a nationally differ to those reported elsewhere. occurring in public areas around standardised reporting framework Furthermore, patterns in the number railway stations. Figure 1 shows for comparison and exchange of rail of incidents through time may public fatalities have stabilised at low safety information between state, refl ect, in part, changes in reporting levels in recent years. A relatively high territory and federal rail safety regula- defi nitions and practices. Of particu- number of public fatalities occurred tors. All state and territory regulators lar importance in this regard is vari- in 1996-97 (10) and 2000-01 (7). All regularly provide ON-S1 coded data ation, through time, in the amount but one of these incidents occurred to the Australian Transport Safety and quality of information contained at level crossings. Bureau for inclusion in the National in historic incident records. In certain Rail Occurrences Database. cases, particularly for earlier records, The number of employee fatalities has also fallen in recent years. A Major railway operators in NSW the fi nal decision on the classifi cation relatively high number of employee began classifying rail safety incidents of a given incident is a subjective according to the ON-S1 scheme one, based on expert opinion. fatalities occurred in 1998-99. All early in 2005. The statistics in this of these (5) were the result of track report are based on incident reports 2.1 Fatalities on the NSW Rail workers being struck and fatally supplied by major operators. The Network injured by trains. majority of incidents involving small Historically, most fatalities on operators are also included as these Under the new national ON-S1 the NSW rail network are associ- are generally reported via the major incident classifi cation scheme, certain ated with trespassers2. Unlike the track owners. ITSRR is developing types of fatalities reported to ITSRR a web-based facility to allow small and summarised below will not be other three categories, trespasser operators to submit and classify included in NSW rail fatality statistics fatalities are generally the result incident reports electronically. It is reported nationally – for example, of intentional acts such as suicide, also sourcing historic records from a death on railway premises due to or an unfortunate consequence of small operators for classifi cation and natural causes. other activity such as vandalism or entry into its corporate database for unauthorised crossing of tracks. Figure 1 shows total annual fatalities future reporting. While diffi cult to control, trespasser for the 10- year period to June 2005. fatalities have fallen slightly in To ensure consistency in the clas- Annual passenger fatalities have de- recent years. sifi cation of incidents over time, in creased gradually over time following 2004-05 ITSRR undertook a major a peak in the late 1990s. This pattern

1 Accreditation is described further in Section 6.2 2 Under the national incident classifi cation scheme, a trespasser is defi ned as a person on railway property who, whether it be intentionally or negligently, is in a place they have no right or authority to be. The category of trespasser may also include suspected suicides.

40 ITSRR Annual Report 2004 - 05/Safety Report Fatalities – July 2004 to June 2005 +?ÄÄj™~jÁË?Í?‰Í‰jÄ +ÖM‰WË?Í?‰Í‰jÄ As shown in Figure 1, the number Ôå ¤Ô of reported passenger, public and †j?Í†ˆÁj?Íja ¤å ¤y Í†jÁ employee fatalities in 2004-05 was o at, or close to, the lowest observed ¤å É over the last 10 years. A total of 0Í? | y four fatalities were reported to Ô å ITSRR for the year, summarised åË šyˆšÉ šÉˆšÈ šÈˆ šoˆšš ššˆåå ååˆå¤ 夈å åԈå å å|ˆåy š šÉˆšÈ šÈˆ šo ššˆåå ååˆå¤ å åԈåÏ åÏ Ïˆå| yˆ ¤ šo ˆ ˆåÔ ˆ in Table 1. Two of the incidents š šo š å Ô Ï É š | were investigated by the Offi ce of Transport Safety Investigations, and ”¬ßjjË?Í?‰Í‰jÄ 0ÁjĬ?ÄÄjÁË?Í?‰Í‰jÄ are described further in Section 4. É Éå y yå A total of 23 other fatalities were | |å recorded on the NSW Rail Network Ï Ïå 0Í? in 2004-05. As in previous years, Ô Ôå the majority of these (21) were ¤ ¤å associated with trespassers being å å šyˆšÉ šÉˆšÈ šÈˆšo šoˆšš ššˆ ååˆ å¤ˆåÔ åԈåÏ åψå| å|ˆåy šyˆ šÉˆšÈ šÈˆšo šoˆš ššˆåå ååˆå¤ 夈åÔ åԈåÏ åψå| å|ˆåy struck by trains. Two people åå å¤ šÉ š received fatal injuries after jumping Ë from infrastructure onto trains. ‰~ÖÁjˤ±Ë?Í?‰Í‰jÄ˝™Ë͆jË!.8Ë-?‰Ë!jÍݝÁËrˤššyˆšÉË͝ËÔåå|ˆåy

!Íj]Ë ”¬ßjjˉ™WÖajÄËW™ÍÁ?W͝ÁÄË

Table 1. Public, Passenger and Employee Fatalities – July 2004 to June 2005 Date Category Location Description During shunting operations an employee fell from a moving wagon 1 July 2004* Railway Employee Port Botany (Sydney) and was run over by the train. A male passenger fell from the station platform and was struck by a passing 27 October 2004 Passenger Toongabbie (Sydney) passenger train. A member of the public was found unconscious on the concourse. Ambu- lance crews attended and declared the 31 March 2005 Member of the Public Central Station (Sydney) person deceased. A train struck a road motor vehicle at a level crossing, killing the sole occupant 31 May 2005* Member of the Public Grawlin Plains of the vehicle. * Further information on these incidents is provided in Section 4

ITSRR Annual Report 2004 - 05/Safety Report 41 2.2 Injuries on the NSW Rail Serious Injuries – July 2004 to Network June 2005

The new national incident clas- sifi cation scheme classifi es injury as A breakdown of injuries in 2004-05 serious or minor, based on whether by incident type (Figure 3) shows or not an injured person is admit- that injuries were consistent with ted to hospital. This is different to known risks, that is, most public the previous classifi cation scheme injuries occurred at level crossings, for NSW, which classifi ed injury most passenger injuries were into one of three categories based associated with slips, trips and falls on the length of time a person was and trespasser injuries were largely likely to be affected by an injury. the result of being struck by trains. There is no direct relationship One notable feature of the 2004- between the two schemes and the 05 data was the high number information in historic incident of employee serious injuries (13) reports is generally not suitable compared to previous years. These for grading severity according to injuries (Table 2) were suffered in the new scheme. For this report, various circumstances by a range serious injury statistics are based on of employee types including track a combination of Class 1 and Class workers, train drivers and train 2 injuries of the former scheme3. guards. The number of serious injuries +?ÄÄj™~jÁË.jÁ‰ÖÄË™ŽÖÁ‰jÄ +ÖM‰WË.jÁ‰ÖÄË™ŽÖÁ‰jÄ reported to ITSRR for the 10 oå Ôå years to June 2005 is shown in Figure 2. Historically, the greatest Éå ¤y number of serious injuries on the |å ¤å NSW network is associated with 0Í? passengers. Approximately 75% Ôå y of these injuries were the result å å

šyˆšÉ šÉˆšÈ šÈˆšo šoˆšš ššˆåå ååˆå¤ 夈åÔ åԈåÏ å å|ˆåy šyˆšÉ šÉ šÈˆšo šoˆšš ššˆåå ååˆå¤ 夈åÔ åԈåÏ åψå| å|ˆåy of slips, trips and falls on railway ψå| ˆšÈ property, for example, on trains or station platforms. The number of ”¬ßjjË.jÁ‰ÖÄË™ŽÖÁ‰jÄ 0ÁjĬ?ÄÄjÁË.jÁ‰ÖÄË™ŽÖÁ‰jÄ serious passenger injuries has fallen ¤y Ôå in recent years and the count for ¤y 2004-05 (14) was less than half the ¤å longer-term annual average. ¤å 0Í? y The number of public and trespass- y er serious injuries in 2004-05 was å å

šyˆšÉ šÉˆšÈ šÈˆšo šoˆšš ššˆåå ååˆå¤ å åԈåÏ åψå| å|ˆåy š šÉˆšÈ šÈˆšo šoˆšš š ååˆå¤ 夈åÔ å åÏ å|ˆåy ¤ˆåÔ yˆšÉ šˆåå ԈåÏ consistent with historical behaviour. ˆå| However, the number of serious employee injuries in 2004-05 was ‰~ÖÁjËÔ±Ë.jÁ‰ÖÄË™ŽÖÁ‰jÄ˝™Ë͆jË!.8Ë-?‰Ë!jÍݝÁËrˤššyˆšÉË͝ËÔåå|ˆåy more than double the longer-term !Íj]Ë ”¬ßjjˉ™WÖajÄËW™ÍÁ?W͝ÁÄË the annual average.

3 Class 1: An injury which permanently alters the future of an individual. Class 2: An injury which for the short term alters the future of an individual (Rail Infrastructure Corporation, 2002, Safety Incident Coding Specifi cation, Version 4.0)

42 ITSRR Annual Report 2004 - 05/Safety Report Table 2. Employee Serious Injuries – July 2004 to June 2005 Date Location Description Train guard struck by a stone around his eye, resulting in a large 14 October 2004 Beecroft (Sydney) gash Train guard pulled from his compartment by a male standing on 11 December 2004 Sydney Terminal the platform Collision between high-rail vehicle 1 and track machine. Two 12 December 2004 Nana Glen persons in high-rail transported to hospital Employee severed a fi nger while operating a wagon door during a 20 December 2004 Port Waratah freight train inspection Passenger train driver suffered smoke inhalation after extinguish- 19 January 2005 Glenfi eld (Sydney) ing carriage fi re lit by vandals Passenger train driver received an electric shock from the train’s 14 February 2005 Liverpool (Sydney) vigilance control equipment Normanhurst Passenger train driver sustained a severe fi nger injury while secur- 31 March 2005 (Sydney) ing an open carriage door Campbelltown 6 April 2005 (Sydney) Train driver assaulted by male passenger Track worker sustained 2 broken legs after being struck by length 25 May 2005 Muswellbrook of rail during track work Track worker struck by track maintenance machine and conveyed 26 May 2005 Drayton Junction to hospital for treatment Cherry picker lowering two employees from overhead wire repairs 29 May 2005 Town Hall (Sydney) failed. Both conveyed to hospital 1A vehicle capable of running on road and rail. Generally these are standard road vehicles which have been fi tted with a pair of fl anged rail wheels on the front and rear (Australasian Railway Association website)

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ITSRR Annual Report 2004 - 05/Safety Report 43 2.3 Collisions on the NSW Rail Network

A collision is an incident where a train (or rolling stock)4 strikes another object, such as another train, a track obstruction or a person5.

Collisions vary greatly in terms of their nature and consequences. There are eight specifi c train collision categories6 under the new national rail incident classifi ca- tion scheme. Figure 4 shows the number of reported collisions over the last ten years for four collision categories considered by ITSRR to 0Á?‰™Ë͝Ë0Á?‰™Ë ‰Ä‰™Ä 0Á?‰™Ë͝Ë-‰™~Ë.͝WË ‰Ä‰™ pose a relatively high safety risk. Ïå Ïå The other four collision categories Ôy Ôy not reported here are trains col- Ôå Ôå liding with animals, obstructions, ¤y ¤y 7. 0Í? missiles and road vehicles ¤å ¤å y y The annual number of train to å å

8 š šÉ šÈ š ššˆåå ååˆå¤ å¤ åԈ åÏ å šyˆš šÉˆšÈ š šoˆ ššˆå åå å¤ åԈåÏ åÏ å|ˆåy rolling stock collisions has gradu- yˆš oˆšš |ˆå Ȉš ˆš ˆšo ˆå ˆå| ˆ ˆå ˆå å š å¤ ally decreased over the 10-year É È Ô Ï y É o š å Ô | period. There is also a suggestion 0Á?‰™Ë͝Ë+jÁĝ™Ë ‰Ä‰™ 0Á?‰™Ë͝Ë™wÁ?ÄÍÁÖWÍÖÁjË ‰Ä‰™ of a drop in the annual number oå oå of collisions in the second half of Éå Éå the period for both train to train |å |å and train to person collisions. The 0Í? number of train to infrastructure Ôå Ôå collisions varied over the 10 year å å

šy šÉˆšÈ šÈˆ š ššˆåå å å åÔ åψå| å|ˆåy šy šÉ šÈ š ššˆ å 夈åÔ åԈåÏ åÏ å| period. These incidents comprise o åˆå ¤ o å ˆš ˆš ˆå ˆåÏ ˆš ˆšÈ ˆšo ˆšš ˆå¤ ˆå| ˆå š å a range of events including trains É o š ¤ Ô É å y scraping platforms, trains collid- ‰~ÖÁjË|±Ë0Á?‰™Ë ‰Ä‰™Ä˝™Ë͆jË!.8Ë-?‰Ë!jÍݝÁËrˤššyˆšÉË͝ËÔåå|ˆåy ing with buffer stops and trains entangling overhead wiring. !Íj]Ë ‰Ä‰™ÄË?ÍːjÜjËWÁÄĉ™~ÄË?ÁjËÁj¬ÁÍjaËÄj¬?Á?Íjß±Ë0Á?‰™Ë͝ˬjÁĝ™ËW‰Ä‰™ÄËjÞWÖajˉ™W‰aj™ÍÄËW?Äĉw‰jaË?ÄË ÄÖĬjWÍjaÊ?ÍÍj”¬ÍjaËÄ։W‰aj

4 Rolling stock refers to the individual pieces of a train, for example, a carriage or wagon. A train is one or more units of rollingstock coupled together. 5 Under the national incident classifi cation scheme, people struck by trains as part of a suspected or attempted suicide are not classifi ed as train to person collisions. 6 There is a generic collision category “other” which is not considered in this report. 7 Most collisions between trains and vehicles occur at level-crossings – these incidents are classifi ed as level crossing incidents and reported separately in Section 2.5. 8 A train to rolling stock collision is an incident where a train strikes (or is struck by) a piece rolling stock or where one piece of rolling stock

44 ITSRR Annual Report 2004 - 05/Safety Report Collisions – July 2004 to June 2005

In 2004-05 there were 600 colli- sions involving trains (Figure 5). Over 400 of these were classifi ed as a “collision with missile”. Most col- lisions with missiles (95%) involved persons throwing stones at trains. In four of these incidents, people were injured as a result of being hit by a missile or by shattered glass from a broken window. Other relatively frequent, but minor low impact incidents included collisions with obstructions (mainly trees) and collisions with animals.

There were 30 reported train to person collisions in 2004-05 with 21 of these resulting in injury or fatality. In 17 of these incidents there were fatalities or injuries to trespassers. Of the other four, one employee and one passenger were killed in separate incidents. One ‰Äĉj |¤Ï employee was injured when struck by a track maintenance machine, #MÄÍÁÖW͉™ yÏ and a passenger was injured after
™‰”? || falling from a platform and subse- quently being struck by a train. ™wÁ?ÄÍÁÖWÍÖÁj |å

A total of nine train-to-train +jÁĝ™ Ïå collisions were reported in 2004- 0Á?‰™ š 05. Three incidents involved track maintenance vehicles, one of which -‰™~ËÄ͝W Ï ‰™W‰aj™ÍÄË݉͆˙ËW?ÄÖ?Í‰jÄ resulted in two employees being ‰™W‰aj™ÍÄË݉͆ˤ˝Á˔ÁjËW?ÄÖ?Í‰jÄ -?aË7j†‰Wj Ô taken to hospital with injuries. Five incidents involved low-speed å yå ¤åå ¤yå Ôåå Ôyå Ïåå Ïyå |åå |yå shunting collisions. One collision Ö™Í occurred as a result of a swinging ‰~ÖÁjËy±Ë0Á?‰™Ë ‰Ä‰™Ä˝™Ë͆jË!.8Ë-?‰Ë!jÍݝÁËrË֐ßËÔåå|Ë͝Ë֙jËÔååy door on a freight train striking a window on a passing passenger !Íj]Ë ?ÄÖ?ÍßˉÄËw?Í?‰Íß˝ÁËÄjÁ‰ÖÄˉ™ŽÖÁß±Ë0Á?‰™Ë͝Ë+jÁĝ™Ë ‰Ä‰™ÄËjÞWÖajˉ™W‰aj™ÍÄËW?Äĉw‰jaË?ÄË ÄÖĬjWÍjaÊ?ÍÍj”¬ÍjaËÄ։W‰ajË train.

ITSRR Annual Report 2004 - 05/Safety Report 45 2.4 Derailments on the NSW tigation by the Offi ce of Transport derailments occurred during track Rail Network Safety Investigations (Section 4). possessions, when lines were closed for the purpose of track mainte- A derailment is any incident where A large number of derailments nance. one or more rolling stock wheels in 2004-05 were associated with leave the rail or track during railway shunting, that is, the movement of Half of all derailments in 2004-05 operations. Like collisions, certain trains, locomotives and rolling stock (68) were not associated with types of derailments have the poten- within yards. A subset of shunting running lines. These derailments tial to cause serious consequences derailments have the potential to were associated with trains on such as injuries and fatalities. affect running lines. In 2004-05 various types of track away from there were 30 shunting derailments running lines, or shunting move- 9 The total number of derailments occurring at points that encroached ments in situations where direct impacts on running lines were highly on the NSW network over the or had immediate potential to unlikely. 10-year period to June 2005 is encroach on running lines. shown in Figure 6. These data include various types of derailment, Twenty-fi ve derailments in 2004-05 2.5 Level Crossing including trains on running lines10 were associated with track mainte- Incidents on the NSW , locomotives and rolling stock in nance activity. These generally oc- Rail Network yards and maintenance-related curred on running lines and involved incidents. There has been a steady a variety of train types, including There are more than 3,800 level decline in the total number of track machines, ballast trains and crossings in NSW and most are located in regional areas. Apart from derailments over the last 10 years. high rail vehicles – the latter being standard road vehicles which have train stations, they represent the main point of interaction between Derailments – July 2004 to June been fi tted with fl anged rail wheels the general public and rail opera- 2005 to allow travel along rail tracks. tions. There was a total of 136 derail- In most cases, track maintenance ments in NSW during 2004-05. This is down from 149 derailments in the previous twelve months and 0Á?‰™Ë jÁ?‰”j™ÍÄ consistent with the longer-term decreasing trend for this type of rail Ïåå incident. A breakdown of derail- Ôyå ments for the 12 months to June 2005 is shown in Figure 7. Ôåå

¤yå A total of 13 derailments involved 0Í? trains on running lines. These were ¤åå all freight trains and approximately yå half of the incidents comprised a single wagon derailment. The re- å šyˆšÉ šÉˆšÈ šÈˆšo š ššˆåå ååˆå¤ 夈åÔ åԈåÏ åψå| å|ˆåy o mainder of running line derailments ˆš had more signifi cant consequences š such as multiple wagon derailments ‰~ÖÁjËÉ±Ë jÁ?‰”j™ÍÄ˝™Ë͆jË!.8Ë-?‰Ë!jÍݝÁËrˤššyˆšÉË͝ËÔåå|ˆåy and track damage. Four incidents were the subject of accident inves-

9 Under the national incident classifi cation, any derailment that occurs as part of an incident with a more signifi cant outcome, such as a collision, will be classifi ed as that greater outcome. 10 Under the national incident classifi cation scheme, a running line is defi ned as railway track used for the through movement of trains; a yard is defi ned as track other than running lines used for marshalling, shunting, loading or unloading of trains of for other purposes

46 ITSRR Annual Report 2004 - 05/Safety Report Consequently, most rail-related across NSW in the past two years. involved equipment and signals incidents which involve the public operating continuously. Other types occur at level crossings. Level Crossing Incidents – July of equipment-related incidents 2004 to June 2005 included power failures and late The new incident classifi cation activation of warning signals. scheme has two tiers of classifi ca- There were 276 level crossing inci- tion for level crossing incidents. dents reported to ITSRR in 2004- There were no incidents involving The fi rst tier classifi es incidents 05. Almost half (128) did not fall a train striking a person at a level according to their type, namely, within a specifi c category and were crossing in 2004-05. However, train-vehicle collision, train-person classifi ed as “other”. More than there were eleven incidents where three-quarters of incidents classi- a train collided with a road motor collision or equipment failure11. fi ed as “other” involved damage vehicle and these are summarised The second tier separates collisions to level crossing equipment as a in Table 3. One of these incidents according to the type of crossing result of vandalism or road vehicles (Quipolly) resulted in both oc- protection, namely, active, passive colliding with infrastructure. cupants of the road motor vehicle 12 or unprotected . being taken to hospital with A breakdown of the remaining injuries. Another incident (Grawlin Level crossing incidents over the last level crossing incidents is shown Plains) resulted in the death of the decade are summarised in Figure Figure 9. Most incidents (137) driver of the road motor vehicle. 8. The number of people struck by were related to failures and defects This later incident is the subject of trains at level crossings is low com- of level crossing equipment. The an investigation (refer Section 4). pared to collisions between trains failure of equipment very rarely The remaining incidents did not and road vehicles. Over the 10-years took place in an unsafe mode. report any caualties. to June 2005 there were seven Almost half of these incidents collisions between trains and people compared to 154 collisions between trains and road motor vehicles. #͆jÁ |y Historically, more collisions .†Ö™Í‰™~Ë®a‰ÁjWÍß between trains and road vehicles Ïå ?wwjW͉™~ËÁ֙™‰™~ː‰™j¯ occurred at passive crossings than active crossings. However, the jÁ?‰”j™ÍË ÖÁ‰™~ˆ Ôy number of collisions at passive 0Á?WË ?‰™Íj™?™Wj crossings has fallen in recent years .†Ö™Í‰™~Ë®™ÍËa‰ÁjWÍß (Figure 8) and is now similar to that ?wwjW͉™~ËÁ֙™‰™~ː‰™j¯ ÔÏ for active crossings. A contributing factor to this change is likely to be -֙™‰™~ˉ™jË jÁ?‰”j™Í ¤Ï the removal of a number of cross- ings and the upgrading of others. å¤åÔåÏå|åyå Over 20 level crossings have been Ö™Í closed over the past few years and Ë ‰~ÖÁjËÈ±Ë jÁ?‰”j™ÍÄ˝™Ë͆jË!.8Ë-?‰Ë!jÍݝÁËrË֐ßËÔåå|Ë͝Ë֙jËÔååyË improved level crossing facilities !Íj]˙ËÁj¬ÁÍjaËW?ÄÖ?Í‰jÄË?ÄĝW‰?ÍjaË݉͆Ë?™ßˉ™W‰aj™ÍËaÖÁ‰™~Ë͆‰ÄˬjÁ‰a±Ë0†jËW?Íj~Áß˽#͆jÁ¾ËW”¬Á‰ÄjÄË were installed at over 90 sites Ü?Á‰ÖÄËajÁ?‰”j™ÍÄË݆‰W†ËWWÖÁÁjaËÝjË?Ý?ßËwÁ”ËÁ֙™‰™~ː‰™jıË

11 There is a fourth category of level crossing incident under the national incident classifi cation scheme referred to as “other” – this category is not considered in the historical analysis. 12 Active Crossing: movement of pedestrian and road vehicles actively controlled by devices such as fl ashing lights, bells or other audible devices, gates and barriers. Passive crossing: movement of pedestrian and vehicles controlled by signs or devices which rely on a pedestrian or driver of road vehicle to detect approach of train by direct observations. Unprotected Crossing: no active or passive control or warning devices.

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48 ITSRR Annual Report 2004 - 05/Safety Report Table 3. Level Crossing Collisions – July 2004 to June 2005 Date Crossing Type Location Description 15 July 2004 Active Eungai Freight train collided with a road motor vehicle. No casualties reported. 23 July 2004 Passive Mumbil Passenger train collided with a stalled road motor vehicle at level crossing. No casualties reported. 26 July 2004 Active Griffi th Freight train collided with a road motor vehicle at level crossing. No casualties re- ported. 4 October 2004 Active Nammoona Passenger train collided with road motor vehicle at level crossing. No casualties re- ported. 3 November 2004 Passive Walgett Freight train collided with road motor vehicle at level crossing. No casualties reported. 28 November 2004 Passive Quipolly Freight train collided with road motor vehicle at level crossing. Two occupants of vehicle taken to hospital with minor injuries. 7 December 2004 Active Marinna Passenger train collided with a tractor at level crossing. Minor injuries to the tractor driver. 24 January 2005 Passive Wirrinya Freight train collided with road motor vehicle at level crossing. No casualties reported. 27 April 2005 Passive Gurley Train collided with vehicle at level crossing. No casualties reported. 27 April 2005 Active Wongawilli Colliery Passenger train collided with the rear of a Junction road motor vehicle at level crossing. The driver left the scene in the vehicle. 31 May 2005* Passive Grawlin Plains Single locomotive collided with a road motor vehicle at level crossing. Sole occupant of the vehicle was deceased. * Further information on this incident is provided in Section 4

ITSRR Annual Report 2004 - 05/Safety Report 49 2.6 Track and Civil in ITSRR’s database make reference seasonally dependent but, unlike Irregularities on the to spread track. In these cases, broken rail, are associated with NSW Rail Network spread track was a contributing high temperatures. Approximately factor to, or an associated outcome half of all buckled rails over the Track condition is an important of, a more serious incident such as 10-year period occurred in summer. indicator of rail safety because a derailment. track-related defects can lead to Points are located at the junction more serious incidents such as train Broken rails were the most of two railway lines. They have derailments. The new national rail common type of reported track moveable rails which are used incident classifi cation scheme has irregularity over the 10-year period, to direct a train from one track four categories covering specifi c with an average of approximately to another. Point failures cover a types of track-related defects13. 120 incidents reported per year. range of defects including mis- However, any track-related defect The number of broken rails varies aligned or broken components and associated with an incident of with season because rails are more malfunctioning of point motors. greater consequence, for example, susceptible to breakage at low The number of point failures a derailment, will be classifi ed as temperatures. Approximately half have varied considerably over the that greater consquence. of all broken rails over the 10-year 10-year period although there is period occurred during the winter the suggestion of an increase in the The number of track-related defects months of May, June and July. number of point failures in recent over the last 10 years is shown in years. Figure 10. There were only a small Buckled rail incidents encompass a number of incidents classifi ed as range of defects in the horizontal “spread track” over the period. and vertical alignment of rails. However, over 100 other incidents Many of these incidents are also

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13 Broken Rail; Buckled Track; Spread Track; Points Failure. Track defects not covered by one of these four categories are reported as “other” which is not considered in this report. The “other” category also includes civil infrastructure irregularities, for example, damage to bridges and station facilities.

50 ITSRR Annual Report 2004 - 05/Safety Report Track Irregularities – July 2004 to education, testing and assistance operators are expected to have June 2005 with rehabilitation for affected comprehensive testing regimes employees. that incorporate both random and Over 500 track and civil irregulari- targeted testing. They are also ties were reported to ITSRR during Railway operators have a number required to submit quarterly returns the 2004-05 year. More than half of reporting requirements in summarising their testing activity. of these incidents were assigned relation to drug and alcohol to a generic category “other”. programs. In particular, from 1 July Program Activity – July 2004 to This covers a range of defects and 2004, all operators are required to June 2005 circumstances, some of which have notify ITSRR of positive test results specifi c causes and consequences, as well as any instance where A summary of testing activity is for example, broken joints. It is an employee refuses to undergo shown in Figure 12. Approximately expected the classifi cation scheme testing. Medium to large railway half of the 71 accredited railway will be enhanced in future years to provide for identifi cation and analysis of such incidents. Áj™Ë-?‰ ¤ÔÈ Figure 11 summarises the number of track-related incidents in 2004- 05. It includes other incidents ÖWjaË-?‰ ÉÉ where a track-related defect was identifi ed as a possible contributing +‰™ÍÄË?‰ÖÁj |Ï factor or as an associated outcome of some other, more serious, event. ‰™W‰aj™ÍÄËW?Äĉw‰jaË?ÄËÍÁ?WË‰ÁÁj~֐?Á‰Íß Most track irregularity incidents y .¬Áj?aË0Á?W Í†jÁˉ™W‰aj™ÍÄË݉͆ËÁjwjÁj™WjË͝ËÍÁ?WË‰ÁÁj~֐?Á‰Íß were broken rails (124) and more than half of these (68) occurred in å Ôå |å Éå oå ¤åå ¤Ôå ¤|å the months of May, June and July. Ö™Í

‰~ÖÁjˤ¤±Ë0Á?WËÁÁj~֐?Á‰Í‰jÄ˝™Ë͆jË!.8Ë-?‰Ë!jÍݝÁËrË֐ßËÔåå|Ë͝Ë֙jËÔååyË 2.7 Drug and Alcohol Testing !Íj]Ë ÖWjaË-?‰Ë‰™WÖajÄ˔‰Ä?‰~™”j™Íı

The requirement for railway opera- tors to conduct drug and alcohol oÏ testing of employees involved in ?Á~jËË®¤ååå¯ |š railway safety work was introduced in the Rail Safety Act 2002 and y¤ further developed under the Rail ja‰Ö”®¤å判ååå¯ Safety (Drug and Alcohol Testing) É ® ”¬ßjjË!±¯ Regulation 200314. This Regula- #Á~?™‰Ä?͉™Ë.‰ãj tion and an associated Guideline š .”?Ë®‘¤åå¯
W†Ë0jÄÍÄ | require all accredited operators ÁÖ~Ë0jÄÍÄ to have formal drug and alcohol programs in place. The specifi c å ¤åÔåÏå|åyåÉåÈåoåšå ja‰?™Ë0jÄÍÄˬjÁË,Ö?ÁÍjÁ nature of a program will vary ac- Ë cording to the size and nature of ‰~ÖÁjË¤Ô±Ë ÁÖ~Ë?™aË
W†Ë0jÄ͉™~Ë
W͉܉ÍßËrË֐ßËÔåå|Ë͝Ë֙jËÔååyË an organisation’s operation. As a .†ÝÄ˔ja‰?™Ë™Ö”MjÁ˝wËÍjÄÍÄˬjÁ˶Ö?ÁÍjÁË minimum, programs are to include

14 ITSRR. 2004. Guidelines Relating to Drug and and Alcohol Programs. Reference No. 0243

ITSRR Annual Report 2004 - 05/Safety Report 51 operators in NSW submitted quar- The overall detection rate – the per- common drug associated with terly summaries of testing activity centage of total tests that yielded positive drug tests. and results in 2004-05. Twenty-two a positive result – was higher for heritage rail operators were not drugs (3.0%) than for alcohol In 2005-06 ITSRR will be compil- required to submit quarterly returns (0.4%). These rates are not neces- ing all information from quarterly nor were a number of other small sarily representative of operators or returns and positive testing no- operators. railway safety workers in general. tifi cations to determine patterns Larger operators conduct many of detection across operators Based on quarterly activity state- more tests than smaller ones so and types of railway safety work. ments received at the time of overall rates are heavily infl uenced This information will be used for writing, approximately 4,000 drug by the testing activity and results of comparative assessments and and 35,000 alcohol tests were con- to establish benchmarks for the these larger operators15. ducted in NSW during 2004-05. purpose of identifying any organi- This number of tests is expected Examination of detection rates by sations with an emerging safety to increase in the following year operator shows that over 70% of risk associated with drug and/or because some railway operators operators testing for alcohol did alcohol use. adopted a staged implementation not return a positive test. In con- of their programs in 2004-05. trast, only 40% of operators testing for drugs did not return a positive Program Results – July 2004 to result. However relatively high rates June 2005 of drug detection were gener- ally associated with non-random Table 4 presents summary statistics testing, for example, “for-cause” from the fi rst year of testing. It is testing. This type of testing specifi - based on quarterly returns, which cally targets suspected individuals only summarise testing activ- and is not representative of the rail ity and do not provide detailed safety or rail worker population in breakdowns in relation to positive general. Cannabis was the most testing, for example, detection rates by test type or individual.

Table 4. Drug and Alcohol Testing Results – July 2004 to June 2005 Outcome Alcohol Drug No. of organisations testing for drug and alcohol 30 24 Approximate random component 95% 80%

Overall detection rate 1 0.4% 3.0% Organisations reporting no. positive result for year 23 10 Organisations reporting exactly one positive result for year 2 5 Organisations reporting more than one positive result for year 5 9

Median organisation detection rate 2 0.0% 1.2% 1. Total positive tests (all organisations) divided by total tests (all organisations) multiplied by 100 2. Organisation’s total positive tests divided by organisation’s total tests multiplied by 100

15 Other factors infl uencing the quality of data include organisations providing results for prospective employees not subsequently employed or for all employees rather than for rail safety workers. The fi rst year of returns also included some anomalous results associated with the introduction of new testing equipment

52 ITSRR Annual Report 2004 - 05/Safety Report 3. Major Rail Inquiries

Special Commission of Inquiry 22 February 2005. In that response, Implementation of Recommen- into the Waterfall Rail Accident the Government announced that it dations supported the majority of the 177 One of fi nal recommendations of On the morning of 31 January 2003, recommendations. the SCOI into the Waterfall Rail an outer-urban passenger service Accident was that ITSRR be respon- Five recommendations were not travelling from Sydney to Port Kembla sible for monitoring and reporting supported by Government. These did derailed at high speed and collided on progress in implementing the not relate to safety operations, but with stanchions and a rock cutting Commission’s recommendations. concerned the reporting relationships near Waterfall, south of Sydney. The To achieve this, ITSRR established of the Regulator and the Independ- train was carrying 47 passengers and a system of quarterly reporting, ent Investigator, their structures and two crew. As a result of the accident, to summarise action taken during certain regulatory processes. Eight the driver and six passengers were each calendar quarter on each other recommendations required killed and many other passengers recommendation by the responsible further consideration. These con- were injured. agency. cerned Automatic Train Protection Immediately following the accident, systems, RailCorp’s policy of prevent- To provide a formal measure the NSW Government established a ing passengers from unlocking and of progress, ITSRR developed a Special Commission of Inquiry (SCOI). opening carriage doors in an emer- system to classify the status of each The SCOI was headed by a former gency and improving the precision in recommendation when the rec- Supreme Court judge and conducted locating trains on the network. comendation was made through to in two stages: fi nal implementation and verifi ca- Responsibility for implementing the tion. Two quarterly reports have Stage 1: Inquire on the causes of the recommendations of the SCOI was been submitted to the Minister railway accident at Waterfall on 31 assigned to fi ve separate parties since the release of the fi nal report. January 2003 and the factors which (Figure 13). RailCorp, who owned and Figure 14 shows the progress on contributed to it; operated the passenger train involved the implementation of the 177 in the accident, was responsible for Stage 2: Inquire on the adequacy of recommendations over these two the bulk of these (103) and ITSRR was relevant systems for management of quarters. In summary: responsible for 57. rail safety and any safety improve- ments to rail operations considered necessary as a result of the fi ndings.

The Commissioner’s fi ndings on the -?‰ Á¬ ¤åÏ cause of the accident were contained in an Interim Report published on 0.-- yÈ 15 January 2004. The fi ndings and recommendations from Stage 2 of #0. y the SCOI were contained in the Final !ÍË
Äĉ~™ja y Report published on 17 January 2005. The Final Report made a total 177 ”jÁ~j™WßË.jÁ܉WjÄ y recommendations16, grouped into 19 ?~j™W‰jÄËFË-?‰ Á¬ safety themes. ”jÁ~j™WßË.jÁ܉WjÄ ?~j™W‰jÄ Ô

NSW Government Response to å Ôå |å Éå oå ¤åå ¤Ôå the Final Report !±ËwËÁjW””j™a?͉™Ä Ë

The NSW Government announced its ‰~ÖÁjˤϱË-jĬ™Ä‰M‰‰ÍßËwÁË-jW””j™a?͉™Ä˝wË͆jË.¬jW‰?Ë ””‰Äĉ™ËwË response to the SCOI Final Report on ™¶Ö‰Áßˉ™ÍË͆jË8?ÍjÁw?-?‰Ë
WW‰aj™ÍË

!Íj]Ë0Í?ËwˤÈÈË-jW””j™a?͉™Ä˔?aj

16 Some recommendations had sub-elements making a total of 177 recommendations.

ITSRR Annual Report 2004 - 05/Safety Report 53 • By the end of the fi rst 2005 were the responsibility of • Legislation was amended quarter (March 2005), ITSRR: to clarify that the ITSRR ITSRR had received formal Chief Executive has sole • A National Standard for responses to 141 of the 177 accountability for managing Medical Health Assessments recommendations. Twenty-six ITSRR and administering rail for the rail industry is in place of the recommendations had safety legislation in NSW (Recommendation 57 been reported as complete by (Recommendation 113). (6 subparts). the responsible agency. • ITSRR actively participates in • RailCorp and ITSRR co-operate • By the end of the second National Reform processes with national programs for quarter (June 2005), the status but will not accept national safety critical information of most of the responses had reform proposals which (Recommendation 64) advanced signifi cantly with 123 produce less safe outcomes and NSW shares data with of the 177 responses having (Recommendation 120). the Australian Transport been reviewed and accepted • ITSRR has a process in place to Safety Bureau (ATSB) by ITSRR. Importantly, 21 provide quarterly reports to the (Recommendation 77). recommendations were verifi ed Minister for Transport on the by ITSRR as completed. • ITSRR has confi rmed that all progress made in implementing ATSB accident investigation the Government’s response reports are made public Of the 21 recommendations closed to the SCOI fi nal report (Recommendation 75). by the end of June 2005, fi ve were (Recommendation 125 (a) (b)). the responsibility of RailCorp: • Legislation has been enacted • The Minister for Transport to establish NSW Offi ce of has committed to table • RailCorp’s Rail Management Transport Safety Investigations in Parliament, each such Centre now has a touch (OTSI) as a separate agency to quarterly report by ITSRR screen dial-up facility and a ITSRR (Recommendation 78). (Recommendation 126). dedicated phone line directly • Legislation was amended to emergency services for use to provide for OTSI/ in the case of an emergency Chief Investigator to (Recommendations 2 & 27). initiate rail accident/ • RailCorp has in place a random incident investigations drug and alcohol testing (Recommendation 79). program which includes -jW””j™a?͉™Ë.Í?ÍÖÄˈˤÄÍË,Ö?ÁÍjÁËÔååy voluntary self-identifi cation and ¤|å rehabilitation to assist workers (Recommendation 56). ¤åå • RailCorp has employed a Éå

Manager Information Systems Ôå

to manage the collation of -jW””j™a?͉™Ë.Í?ÍÖÄˈËԙaË,Ö?ÁÍjÁËÔååy

safety information within ¤|å !±Ë-jW””j™a?͉™Ä RailCorp (Recommendation ¤åå 60). Éå • ITSRR has appropriate permanent access to RailCorp’s Ôå

j™ ‰ja ‰ja Intranet (Recommendation 62). ™Äj ™Äj ™Äj Äja ‰w  ‰”ja #¬j™ #¬j™ #¬j™ #¬ #¬j™ #¬j™ jÁ‰w Äja ÄjajŽjWÍja  Äja jĬ jĬ jĬ™ÄjË - - Ë- ™Ë7 Ë jË ?
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‰~ÖÁjˤ|±Ë.Í?ÍÖÄ˝wË-jW””j™a?͉™ÄËwÁ”Ë8?ÍjÁw?Ë. #ˉ™?Ë-j¬ÁÍ Ë !Íj]Ë0Í?ËwˤÈÈËÁjW””j™a?͉™Ä˔?aj

54 ITSRR Annual Report 2004 - 05/Safety Report 4. Major Rail Incident Investigations

Sections 67 and 68 of the Rail other passengers and crew were The Train Operator (RailCorp) Safety Act 2002 give the Chief treated on-site for shock and minor Investigator of the Offi ce of Trans- injuries. • review arrangements for exit port Safety Investigation (OTSI) the from and access to trains in authority to undertake investiga- OTSI’s fi nal report into the accident emergencies; was published on 24 February tions and reports of rail accidents • provide safety briefi ngs to inter 2005. The investigation determined in NSW. In the period July 2004 to and intrastate rail passengers that the collision at the level June 2005, seven railway accident prior to the start of journeys; crossing was the result of the road investigations were initiated or • review design, position and completed by OTSI. vehicle being in a position on the level crossing where it would be hit protection of fuel tanks on its by the train. The investigation was diesel trains. 4.1 Incident Investigations unable to determine whether the The Track Manager (Australian Completed – July 2004 driver of the vehicle moved it to Rail Track Corporation) to June 2005 such a position in error or deliber- ate act. • subject to the fi ndings of Final Report into a Level Cross- the Joint Parliamentary Level ing Collision at Baan Baa in The investigation found that the Crossing Committee, ARTC May 2004 mechanical condition of the car and Narrabri Council upgrade Late in the afternoon of Tuesday 4 and of the train did not contribute the crossing to meet minimum May 2004, a CountryLink passenger to the accident. It also determined standards required for passive service carrying 33 passengers and that the train driver operated the level crossings. three crew members collided with train within specifi ed limits and The Regulator (ITSRR) a motor vehicle at a level crossing that he responded appropriately at Baan Baa, in north western NSW. when it became apparent that a • consider installation of systems The leading car of the two-car train collision was going to occur. to allow train drivers to activate subsequently derailed and came to The Final Report contained 12 warning systems to notify the rest on its side. As a result of the primary recommendations on a public of the approach of a collision, the single occupant of the number of safety issues relating to train; car was fatally injured. Four train the accident including: • monitor RailCorp’s progress passengers were hospitalised and in response to the report’s recommendations. In response, ITSRR is considering the feasibility of the recommendations (in particular the recommendation to install warning systems on trains) and will follow up accepted recom- mendations.

Final Report into Shunting Fatal- ity at Port Botany in July 2004 Early on the afternoon of 1 July 2004, an employee of Lachlan Valley Rail Freight (LVRF) was fatally injured whilst involved in shunting opera- tions at the Port Botany rail yard in Sydney. In May 2004, the Office of Transport Safety Investigations investigated a derailment at Baan Baa, NSW.

ITSRR Annual Report 2004 - 05/Safety Report 55 There were no eyewitnesses to the • establish competencies with these four incidents but a accident. The driver of the train necessary for shunting and the signifi cant amount of damage was involved went in search of the means to deliver and assess incurred to rolling stock and railway shunter after he failed to respond such competencies; infrastructure. to a radio communication. The • ensure training for shunters The most recent accident under driver found the shunter lying in accordance with defi ned investigation was a fatal collision across the track. The shunter was procedures; between a single locomotive and a transported to hospital where he • implement a system of regular 4WD vehicle on a level crossing at was pronounced deceased. worker supervision. Grawlin Plains in the central-west region of NSW. The driver of the OTSI’s Investigation’s fi nal report The Railway Owner (RailCorp) into the accident was published vehicle was killed. The locomotive on 28 June 2005. It determined • review safeworking rules suffered minor impact damage that the employee, while riding on relating to shunting; to front and side. There were no injuries to the crew of the locomo- a moving wagon, fell through a • advise operators on the tive although both members were gap in the wagon’s fl oor onto the need for operator-specifi c treated for shock. tracks below. The employee was safeworking procedures; fatally injured when he was run • review the condition of over by the train’s wheels. walkways in yards and upgrade The report identifi ed two factors as required. that directly contributed to the The Regulator (ITSRR) accident. One was the employee was riding on the wagon without • amend certifi cation any form of physical restraint. requirements for competency The second was the design of the assessors; wagon itself – the deck on which • audit compliance of operators the employee stood comprised a in relation certifi cation of series of beams with large gaps in competency; between and there was no protec- tion against the danger of falling • advise operators of the need through the gaps to the tracks to review operations to ensure below. Several indirect contribut- compliance with Network ing factors were also identifi ed Safeworking Rules; – including defi ciencies in risk • advise operators of the assessment, staff training, supervi- Australian Standard sion and wagon design (which requirements for walkways. encouraged unsafe riding). 4.2 Incident Investigations The report contained 15 recom- In-Progress – July 2004 mendations on a number of safety to June 2005 issues relating to the accident including: Five other rail accident investiga- tions initiated by OTSI in 2004-05 The Train Operator (Lachlan were in-progress at the time of Valley Rail Freight) writing (Table 5). Four of these involved the derailment of freight • assess the risk of activities trains on mainlines. There were associated with shunting; no injuries or fatalities associated

56 ITSRR Annual Report 2004 - 05/Safety Report Table 5. Rail Accident Investigations In-Progress – July 2004 to June 2005. Date Location Description Casualties

22 December 2004 Bethungra Mainline derailment of freight train operated by Freight None Australia. Eight of 11 derailed toppled from an embank- ment and came to rest on either side of the track.

1 March 2005 Lapstone Mainline derailment of freight train operated by Pacifi c None National. One wagon derailed but the train travelled for almost 5 km before coming to a stop.

7 March 2005 Wauchope Mainline derailment of freight train operated by Pacifi c None National. One wagon derailed but 3.1 km of track and rail bridge damaged.

6 April 2005 Old Burren Mainline derailment of a fully loaded wheat train operated None by Pacifi c National.

31 May 2005 Grawlin Collision between single locomotive and road motor vehicle 1 fatality Plains at level crossing.

ITSRR Annual Report 2004 - 05/Safety Report 57 5. Rail Safety Standards and Guidelines

5.1 State Legislation, out responsibilities at these points agreement; and of interaction – the “interface”. The Regulations and • provisions for auditing of Guidelines purpose of an SIA is to ensure that the implementation of the safety risks of railway operations at agreement by the ITSRR, and The Rail Safety (General) Regulation interface points are clearly identi- provision of information to 2003 was amended during 2004- fi ed and responsibility assigned. In ITSRR for this purpose. 05. The amendments were made this way the possibility of “gaps”

via the Rail Safety (General) Amend- in the coverage of appropriate risk ment (Miscellaneous) Regulation control measures will be minimised. Passenger Security Policy and 2005 which came into effect on Plans Under Section 12 of the Rail Safety 14 January 2005. The amendments Act 2002, an applicant for accredi- Under Section 13 of the Rail Safety covered three areas of rail safety tation is required to have a SIA with Act 2002, operators of railways management as described below. all other rail operators that interact involving the carriage of passengers with their railway operations. A must develop a policy and plan to Safety Interface Agreements SIA must comply with any require- maximise the safety and security of Rail organisations are responsible ments prescribed by a regulation passengers. A Passenger Security for management of safety issues under this section of the Act. The Policy is a statement of a rail op- relating to their area of operation. Rail Safety (General) Amendment erator’s commitment to maximise However, in situations where the (Miscellaneous) Regulation 2005 passenger and staff security in their operations of one rail organisation prescribes specifi c requirements for railway operations. A Passenger a SIA which must include: interact with those of another, the Security Plan details how the Policy will be implemented. responsibilities for management of • the parties to the agreement; safety-related issues must be clearly • a description of the safety Previously there were no regula- defi ned, for example, when a rail interfaces and an assessment of tions prescribing what needed organisation contracts another associated safety risks; to be included in a passenger organisation to undertake mainte- security policy or plan and this • the controls to manage safety nance of rolling stock. was a matter for the rail operator risks (called the risk controls); itself to determine. The Rail Safety A Safety Interface Agreement (SIA) • the party responsible for (General) Amendment (Miscellane- is an agreement between two or implementing and monitoring ous) Regulation 2005 now provides more operators which clearly sets the performance of each risk guidance to rail operators on the control; contents of their policies and plans • the party responsible for in relation to passenger security. modifying the operation of each risk control; Clauses 49B and 49C of the regulation set out requirements • arrangements for the exchange for a passenger security policy and of information between plan. A policy must include three parties and for the conduct elements, namely: of reciprocal inspections and audits by each party; • a statement of the operator’s • the effect on the agreement commitment to passenger and of any change in ownership staff security; Reiner Mangulabnan, Audit and Compliance of the railway operations Officer (left) inspects a RailCorp Simulator in • responsibilities and Petersham, NSW concerned or of the parties to accountabilities of the operator the agreement; and employees; • a requirement that contractors • provisions for consultation and subcontractors of the when developing relevant parties will comply with the procedures.

58 ITSRR Annual Report 2004 - 05/Safety Report A plan must include 14 elements division of the operations; co-regulatory system for rail safety. including: • a particular route; ITSRR has been active in the • an assessment of security risks • a demonstration project to trial development of the national model affecting passengers and staff; a new fatigue management legislation to ensure that the system. • measures to reduce risks, reform proposals lead to improved manage threats and deal with The Rail Safety (General) Amend- safety management, and are con- emergencies; ment (Miscellaneous) Regulation sistent with safety reforms adopted 2005 provides for exemptions in recent years to strengthen the • allocation of responsibilities to from the fatigue management regulation of rail safety in NSW. appropriate persons; provisions of the Rail Safety Act • collection and sharing of 2002. However, the granting of The Australian Transport Council information; an exemption does not release an (ATC) recently endorsed the NTC’s • evaluation, testing and operator from the requirement to policy proposals that will underpin periodic review of the plan and ensure that safe working practices the national model legislation. The procedures. and fatigue management are main- NTC proposes to submit draft na- tional model rail safety legislation Fatigue Management Provisions tained. Exemptions will therefore be issued subject to a series of to transport ministers in December 2005 for voting following a further Fatigue has been recognised as conditions including: period of public consultation. a safety hazard in the transport • the organisation shall industry for many years. The continue to manage fatigue Regulations – Safety consequences of fatigue include in accordance with the Management Systems and Ac- decreased alertness, slower reaction requirements of the Rail Safety creditation times, memory lapses and higher Act 2002, and the associated error rates. The NTC is also developing na- regulations or guidelines; tional model regulations addressing The Rail Safety Act 2002 outlines • organisation must adhere safety management systems and the requirements for rail organisa- to specifi ed standards and accreditation acceptance in the tions to manage employee fatigue. demonstrate regular audit rail industry. The NTC proposes It includes specifi c provisions for and review of specifi ed to release a discussion paper for various types of rail safety workers standards including employee public consultation in September regarding maximum shift lengths, feedback regarding fatigue 2005 outlining options for the maximum number of shifts and management. development of these regulations. minimum breaks between shifts. In The NTC proposes to submit the 5.2 National Initiatives 2003, ITSRR issued new guidelines draft regulations to transport 17 for fatigue management to help ministers in March 2006. organisations establish programs to National Model Rail Safety reduce the incidence of fatigue in Legislation Review of institutional rail safety workers. arrangements for regulation of NSW is a signatory to the Inter- rail safety In certain circumstances, rail Governmental Agreement for Regu- organisations may seek to vary latory and Operational Reform in In addition, the NTC is proposing to the shift limits imposed by such Road, Rail and Intermodal Transport include a review of the institutional provisions. Examples of when an (‘the IGA’). The IGA requires the arrangements for regulation of rail application for an exemption could National Transport Commission safety. Included in this review will apply include: (NTC) to develop proposed reforms be an examination of the relation- to improve and strengthen the • a particular site, activity or

17 ITSRR. 2004. Guidelines Relating to the Management of Fatigue. Reference No. 02438.

ITSRR Annual Report 2004 - 05/Safety Report 59 ship between government and the In relation to both the Fatigue Australasian Railway Association’s Management review and the Code Management Company in the Drugs and Alcohol review, ITSRR development of industry standards. is forwarding the fi ndings of the The NTC proposes to release a NSW reviews on these issues to discussion paper for public consul- the NTC for consideration in the tation reviewing the institutional national reviews to ensure national arrangements for the regulation of uniformity or consistency. rail safety in October 2005. National Standard for the Health NTC Fitness for duty projects Assessment of Rail Safety Workers The ATC approved a National The ATC has also asked the NTC Standard for the Health Assessment to review and develop national of Rail Safety Workers in April policies relating to three key safety 2004. This was the fi rst time all issues: fatigue, drugs and alcohol States and Territories have adopted testing, as medical fi tness for a common system of health assess- safety-critical rail workers. ment arrangements for rail safety workers. This national consistency Fatigue Management Review in the Rail Industry will help rail organisations operate more effi ciently across State and The NTC is conducting a review Territory boundaries. of fatigue management in the rail industry. The Rail Industry Code The Standard adopts a risk man- Management Company, repre- agement approach and refl ects sentatives of rail safety regulators, contemporary medical knowledge rail operators and the Rail Tram and societal values. It incorporates and Bus Union are participating in advances in medical knowledge the review. The NTC proposes to and current understanding of the submit fi nal proposals to the ATC in impact of certain health conditions December 2005. on safe working and addresses the defi ciencies in recent rail safety Drugs and Alcohol Review in the crash investigations. Rail Industry The new standard was adopted The NTC established a review to by all States and Territories on or develop a set of national policies, before 1 July 2004. The arrange- standards and codes/guidelines ments for phasing in the medical for effectively managing the use examinations are contained in the of drugs and alcohol in the rail standard. industry. The Rail Industry Code Management Company, repre- sentatives of rail safety regulators, rail operators and the Rail Tram and Bus Union are participating in the review. The NTC proposes to submit fi nal proposals to the ATC in December 2005.

60 ITSRR Annual Report 2004 - 05/Safety Report 6. Signifi cant Rail Industry Safety Initiatives

6.1 Rail Network all risks associated with the NSW from the Vulnerability Analysis Vulnerability Analysis rail network. Rather, the project Project is being used by ITSRR in its focussed on a set of generic review of accreditation applications The current approach to manage- major incidents that could lead as well as to inform decisions on ment of rail safety in NSW, as for to multiple injuries or fatalities. the targeting of its general compli- the rest of Australia, is one of The analysis involved developing a ance activities, for example, audits co-regulation. Under this system, range of scenarios that may lead to and inspections across the network. primary responsibility for rail each major incident type and then safety lies with the rail industry. performing a detailed analysis of 6.2 National Accreditation Rail organisations are therefore each scenario to assess: Package responsible for ensuring they have • the range of hazards likely processes in place to identify safety The Rail Safety Act 2002 specifi es to lead to a particular major risks associated with their particular requirements for the accreditation incident; operations, and apply appropriate of railway operators. Accredita- control measures to reduce or • the known defences in place to tion provides a means to formally eliminate accidents. control such hazards; attest that railway operators have • any defi ciencies or gaps in the ITSRR’s role as the safety regulator established suitable systems for the current controls; is to review the adequacy of opera- ongoing identifi cation, assessment tors’ risk assessment processes and • recovery measures available and management of safety risks ensure they include, where rel- to minimise the severity of an associated with their particular evant, measures to address known incident. operation. major risks applicable to the NSW The fi nal report from the Vulner- In November 2004, the Australian rail network in general. To ensure ability Analysis Project was com- Transport Council (comprising ITSRR is suitably informed to un- pleted in mid-2005. The fi ndings Federal, State and Territory and dertake such reviews a Vulnerability from the report have given ITSRR a New Zealand Transport Ministers) Analysis Project was undertaken in greater understanding of the types endorsed a National Accreditation 2004-05. of hazards that pose a signifi cant Package (NAP) which was devel- threat to safety on the NSW The purpose of the Vulnerability oped by ITSRR in conjunction with network. The knowledge gained Analysis Project was not to analyse other State and Territory regulators.

Michael Cleary, Senior Audit and Compliance Officer, and Catherine Herriman, Direc- tor Safety Strategy conducted a safety inspection at Port Botany during 2004-05.

ITSRR Annual Report 2004 - 05/Safety Report 61 The Package includes: opening and closing of doors. ITSRR is currently developing a draft standard covering train • guidelines for railway operator The Waterfall rail accident that oc- emergency egress, access and risk and safety management curred in 2003 was an example of evacuation procedures in line with systems; an accident in which the train crew the fi ndings of the report. ITSRR • agreed processes for the became incapacitated and pas- has also requested such a standard approval and variation of sengers were unable to evacuate be developed nationally via the operator accreditation by the train due to closed doors. This National Transport Commission state and territory regulators, accident highlighted the need for in consultation with industry. In and for mutual recognition of a review of the passenger contain- the interim, ITSRR is working with accreditation approvals and ment policy. RailCorp to ensure that the current variations In November 2004, ITSRR released risk of passengers being trapped in • guidelines for annual safety a report on train door emergency a train in the event of an extreme reports that accredited egress18. The report summarised emergency is minimised. operators are required to the results of an extensive review submit to regulators. of existing information and experi- 6.4 Train Driver Safety ences in Australia and overseas Systems and Automatic The NAP applies to any new ac- on the issue of train emergency Train Protection creditations from 31 January 2005. evacuation and associated policies The Special Commission of Inquiry All railway operators that hold an and procedures. The purpose of the (SCOI) into the Waterfall Rail existing accreditation must comply report was to examine whether a Accident in 2003 found that the with the requirements of NAP by standard should be created in NSW accident occurred because of a 30 June 2006. covering train emergency evacua- tion procedures, door egress and failure of the deadman system of The NAP will be used as the basis access and associated equipment. the train and the absence of any for the development of national back-up defence to this failure. The model legislative requirements The report concluded the current deadman system is a foot pedal or for accreditation by the National door security policy adopted by hand-operated device designed to Transport Commission (see Section RailCorp should be amended so bring the train to a stop if a driver 5.2). that passengers have the ability to fails to maintain pressure on it. open train doors and leave trains in an extreme emergency. The report The SCOI also concluded that the 6.3 Emergency Evacuation stressed that the preferred means accident could have been avoided of Rolling Stock of train evacuation following an if another type of engineering defence – a vigilance device – had In the early to mid 1990s, a emergency is (as it is currently) for been fi tted to the train to provide number of injuries and fatalities the driver to stop at the closest an additional defence against driver occurred as a result of people station, open doors onto the incapacitation and the failure of the opening doors and jumping or platform and for the train crew to deadman system. Recommendation alighting from moving passenger control passenger egress from the 31 of the SCOI required all trains to trains. In response to this, the then train. Providing passengers with the be fi tted with a minimum of two State Rail Authority introduced a ability to open doors and evacuate independent engineering defences policy to keep doors closed while themselves is a last resort that to minimise risk of collision or trains are in motion via central should only occur in the situation derailment in the event of driver locking. Under this policy, train where to remain on the train could incapacitation. crews have sole control over the pose a greater danger than that posed by exiting the train.

18 ITSRR. 2004. Train Door Emergency Egress and Access and Emergency Evacuation Procedures.

62 ITSRR Annual Report 2004 - 05/Safety Report Historically, all of RailCorp’s met- 6.5 Train Radio upgrade of software on its rolling ropolitan and outer-metropolitan Communications stock to enable this link. A regula- trains were fi tted with a deadman tion to mandate the functionality system. However, in response to The Special Commission of Inquiry of train radio communications in the recommendations of the SCOI, into the Glenbrook Accident in 1999 NSW is currently being drafted by RailCorp has progressively installed and the Waterfall Rail Accident in ITSRR. vigilance devices on all its passen- 2003 highlighted the importance ger trains. As of December 2004, of compatibility of communication Over the longer term, current all of the suburban fl eet had been equipment used on the NSW rail incompatibilities between different fi tted with vigilance control devices. network. Communication defi cien- types of communications equipment One exception is the 600 class cies were identifi ed as a major cause will be addressed using digital tech- railcars that operate in the Hunter of the Glenbrook rail accident. Com- nology as part of the development Valley. In the 600 class railcars the munication defi ciencies also hindered of a national functional standard. A guard will travel with the driver as the response of emergency services national working group led by the an interim measure until these cars to the Waterfall accident. Australasian Railways Association are phased out at the end of 2005. (ARA) is working towards the adop- One of the key recommendations tion of a single communications The fi tting of two independent arising from the Waterfall SCOI was standard for metropolitan rail track engineering devices is an important the need to ensure interoperability whilst ensuring interoperability with step in minimising the risk of of communications equipment the non-metropolitan area. passenger train collisions or derail- between trains operating on the ments. The SCOI into the Waterfall NSW network. In 2004-05, an This task requires signifi cant techni- Rail Accident also recommended interim solution using existing cal development, consultation and that RailCorp should progressively analogue technology was developed investment by both Government implement Automatic Train Protec- to enable inter-operability during an and the private sector and is not tion (ATP). ATP systems are more emergency situation. This solution due for implementation until 2010. advanced technologies which can involves the integration of the Met- ITSRR, as the Regulators’ repre- automatically override a driver if a roNet and CountryNet radio systems sentative on this working group, train is behaving in an unauthor- to expand the existing CountryNet will continue to actively support and ised way in relation to network radio system into the metropolitan contribute to the development of a constraints. area through the use of the Voice national communications standard. Communications System (VCS) Prior to the release of the SCOI which is installed at RailCorp’s Rail safe and reliable transport services for new south wales Report, both RailCorp and the Management Centre. ARTC, which manages NSW’s Train Door Emergency interstate rail lines, were examining In the event of an emergency, the Egress and Access and Emergency Evacuation Procedures the feasibility of introducing ATP VCS will be used to manage radio systems on their networks. ITSRR calls from train drivers operating will also facilitate a detailed review in the metropolitan area to train of the applicability of ATP systems controllers and signallers. Therefore to the NSW network in conjunc- during an emergency situation, the tion with RailCorp and ARTC and train controller will be able to com- work with the broader rail industry municate simultaneously through through the Australasian Railway a “broadcast call” with passenger Association (ARA) on the applicabil- and freight trains in the immediate ity of a different type of ATP on the vicinity of the train that initiated NSW and interstate rail network. the emergency. In December 2004, Safety Report the state’s major freight operator ITSRR prepared a report recommending (Pacifi c National) completed an changes to emergency evacuation proce- dures in November 2004.

ITSRR Annual Report 2004 - 05/Safety Report 63 NSW Transport Reliability Report

Contents

1. Introduction...... 65

2. Rail...... 66 Background...... 66 RailCorp...... 66 Rail Services...... 66 Metropolitan Rail Area Network...... 72 The Country Network and Rail Infrastructure Corporation...... 74 Governance...... 75 Country Regional Network: Standards and results...... 75 ARTC lease network standards and results...... 78 Comments and outlook for 2005-06...... 78

3. Bus...... 80

Background...... 80

Bus Reform...... 80

Current performance results...... 82

ITSRR’s future work - service quality index...... 85

4. Ferries...... 86

5. Transport Coordination...... 87

6. Summary and conclusion...... 88

Rail...... 88

Bus and ferry...... 88

64 ITSRR Annual Report 2004 - 05/Reliability Report 1. Introduction

In 2004-05 standards were in place The following sections deal with for rail infrastructure, CityRail and performance against these stand- CountryLink services, and bus and ards in: ferry services. • Rail (Section 2) These performance standards • Bus (Section 3) are set by Government. They are • Ferries (Section 4) included in the performance agree- ments1 and contracts administered • Transport Coordination (Section by the Ministry of Transport. The 5). scale of the transport task covered by the agreements and Govern- A summary and conclusions are ment funding is illustrated in Table presented in Section 6. 1.1.

Table 1.1: NSW Government funding and transport task 2004-05 Main task Payments from Government RailCorp – CityRail Urban rail transit 268.8m passengers Provi- $1257m (a) sion of Metropolitan Rail Area network RailCorp – CountryLink Long distance rail passenger 1.6m pas- (b) sengers Rail Infrastructure Corporation (c) Provision of 3900km country regional track $123m for freight and passenger trains State Transit – Sydney Buses and Urban transit bus 200.3m passengers $242m Newcastle Bus and Ferry Services Private bus Urban transit and school students (d) $442m Sydney Ferries Corporation Ferry 13.5m passengers on Sydney $45m Harbour Other (e) Various $70m (a) Includes CountryLink, excluding capital. (b) Included in RailCorp CityRail. (c) Hunter Valley and interstate lines were leased to ARTC in September 2004. (d) Metropolitan daily task is reported to be 367,000 per weekday, of which some 110,000 are on school buses. (e) Includes RTA - Transitway capital grant, public transport infrastructure, non-cash capital grants - interchanges and parking, Integrated Ticketing - contribution to private Transport operators. Sources: 2004-05 task and payments from Budget Paper No. 3, 2005-06. Track km from ITSRR State of the System (forthcoming). Private bus patronage from Table in Sydney Bus Reforms 97% Complete News Release by the Minister for Transport, Minister for State Development, August 7 2005

1 Funding agreements and performance agreements superceded the rail Community Service Obligation (CSO) agreements during 2004/05.

ITSRR Annual Report 2004 - 05/Reliability Report 65 2. Rail

Background The new Rail Performance Agree- In each of the outcome areas there ment seeks three outcomes from are performance indicators, and for The Government has reliability the system operated by RailCorp. most of these indicators, targets performance standards in place for These align with the objectives set are set. Following the signing RailCorp’s CityRail and CountryLink for RailCorp by the legislation. The of the Agreement, RailCorp has passenger train services, including outcomes are: been providing monthly reports a Rail Performance Agreement. It on performance to the Ministry of also has an agreement in place for 1. Clean, safe, secure and Transport. These form the basis for Rail Infrastructure Corporation’s reliable railway passenger most of the comments below. (RIC) rail infrastructure on the services in NSW provided in Country Regional Network, which an effi cient, effective and Rail services includes some output performance fi nancially responsible manner. Although safety remains standards for that infrastructure CityRail (although there are no compre- paramount, a priority is to hensive standards for infrastructure return reliability of CityRail Aspects of CityRail performance condition). services to acceptable levels; monitored under the Rail Perform- 2. For that part of the NSW rail ance Agreement include matters network vested in or owned by RailCorp under the headings of reliability, RailCorp, RailCorp is to enable secure environment, and cus- the effective provision of safe tomer service and capacity-demand Background and the Rail Perform- and reliable passenger and matching. ance Agreement freight services. The Government’s agreements with 3. Organisational capability Reliability RailCorp for reliability standards and culture necessary for The performance indicators in deal with three broad areas: CityRail responsible management, the Agreement embody a more and its services; CountryLink and its a strong safety culture and narrow defi nition of reliability than services; and the Metropolitan Rail a commitment to excellent in ITSRR’s legislation4. The Agree- Area network infrastructure. The customer service. ment refers to service cancellations, key document is the Rail Perform- skipped stops and on-time running. ance Agreement between the Outcome 1 relates to CityRail and Minister for Transport and RailCorp. CountryLink passenger services. Results for 2004-05 peak hours are This Agreement is required by leg- Outcome 2 relates to the manage- shown in Table 2.1. islation2. Together with the Funding ment of the Metropolitan Rail Agreement between the Ministry Area network infrastructure and The operational diffi culties ex- of Transport and RailCorp, the Rail network control. Outcome 3 perienced by CityRail in 2003-04 Performance Agreement replaced relates to internal rail matters, and continued into 2004-05, notwith- the CityRail Services Agreement is of lesser interest in this report. standing the introduction of a during 2004-053. Reliability Improvement Plan.

2 Transport Administration Act (1988), s.17C. 3 Referred to in ITSRR’s 2003-04 Annual Reliability Report. 4 Legislation for ITSRR defi nes reliability as: quality, effectiveness and effi ciency of the service, having regard to the following matters: (a) management and administration of infrastructure, assets, resources and liabilities, (b) fulfi lment of obligations under contracts and arrangements relating to the provision of services, including timeliness and quality of services, (c) any other matters prescribed by the regulations.

66 ITSRR Annual Report 2004 - 05/Reliability Report All CityRail lines were adversely Table 2.1: CityRail Services Reliability 2004-05 affected. The best performance for Target Performance punctuality was for the South Coast intercity line, and the worst on the Peak hours timetabled 1% 2.5% Main South suburban line (Fairfi eld, services cancelled Liverpool). Overall performance did Stops skipped (peak hours) 1% 1.3% not substantially improve through Metropolitan on-time 92% to within 3 61.1% the course of 2004-05. running minutes 59 seconds (a) ITSRR’s Survey of CityRail Customers Intercity on-time running 92% to within 5 72.2% 20045 confi rmed the perceptions minutes 59 seconds of the impact of poor reliability on (b) passengers. Delays and cancella- tions (identifi ed by 56 percent of Total CityRail on-time 92% 63.1% respondents) and punctuality (54 running percent) were the top two aspects (a) Changed to 5 minutes from 1 July 2005. (b) Changed to 6 minutes from 1 July 2005. of service for which passenger Source: RailCorp reports to the Ministry of Transport. expectations of CityRail services were not being met. Together Ë ™Í†ßË+j?Ë#™ˆ0‰”jË-֙™‰™~]Ë ‰Íß-?‰ËË ֐ßˤšššËˆË֙jËÔååy with crowding (53%), these results #0-Ë° ¤åå jW‰™jËÄÍ?ÁÍÄË®š|±Ô°¯ #ß”¬‰WÄ were substantially higher than 0?Á~jÍ˚԰ šå those for other elements of service oå quality such as cost, temperature Èå ™Íj~Á?͉™ËwË
‰Á¬ÁÍˉ™jˉ™ÍË and cleanliness. This may be ͉”jÍ?Mj Éå attributable to the fact that where 8?ÍjÁw?ËWÁ?Ć yå there are fewer services (such as in j™MÁËWÁ?Ć ÁjÝËƝÁÍ?~jÄË ®|ȱš°¯ the off peak), poor performance |å

Ïå in time running, skipped stops, ?Í?~~jÁÄ˝¬jÁ?͉™~

Ôå delays and cancellations will lead to ‰™ÁË Í‰”jÍ?MjË W†?™~jÄ longer delays for some individual ¤å passengers. å !֔MjÁ˝wËÍÁ?‰™ÄËaj?ßjaË?™a˙֔MjÁ˝wˉ™W‰aj™ÍÄ y^ååå šåå During 2004-05, RailCorp pro- |^yåå oåå vided the Ministry of Transport |^ååå Èåå and Government more detailed Ï^yåå Éåå statistics as to reasons for this poor Ï^ååå 0Á?‰™ÄËaj?ßja ™W‰aj™ÍÄ yåå performance. These statistics relate Ô^yåå |åå Ô^ååå

to “incidents”. A high level of !֔MjÁ˝wËaj?ßÄ Ïåå !֔MjÁ˝wˉ™W‰aj™ÍÄ incidents is usually associated with ¤^yåå Ôåå low on-time running, as depicted ¤^ååå ¤åå in Figure 2.1. This shows CityRail yåå å å peak on-time running and incidents ֐ˆå| ֐ˆåÏ ֐ˆåÔ ֐ˆå¤ ֐ˆåå ֐ˆšš ?™ˆåy ?™ˆå| ?™ˆåÏ ?™ˆåÔ ?™ˆå¤ ?™ˆåå ?Áˆåy ?Áˆå| ?ÁˆåÏ ?ÁˆåÔ ?Áˆå¤ ?Áˆåå .j¬ˆå| !Üˆå| .j¬ˆåÏ !ÜˆåÏ .j¬ˆåÔ !ÜˆåÔ .j¬ˆå¤ !Üˆå¤ .j¬ˆåå !Üˆåå .j¬ˆšš !Üˆšš ?߈åy ?߈å| ?߈åÏ ?߈åÔ ?ßˆå¤ ?߈åå by month from July 1999. ™Í†

‰~ÖÁjËÔ±¤]Ë ‰Íß-?‰Ër˝™ˆÍ‰”jËÁ֙™‰™~Ë?™aˉ™W‰aj™ÍÄ

5 Survey of CityRail Customers 2004 ITSRR February 2005. Note that this survey included both peak and off-peak services.

ITSRR Annual Report 2004 - 05/Reliability Report 67 ITSRR assisted the Government with However, this is a longer term measures are within or very close to an analysis of the incident statistics. initiative with CityRail expecting current targets – as shown in Table Major incident types contribut- measurable improvements from 2.2. Some care needs to be used in ing to performance in 2004-05 2008. interpreting fi gures such as shown included those related to crew, in this table, as they do not capture infrastructure and fl eet. Secure Enviroment and Customer customer experience. It is possible Service for certain customers, or indeed In the latter stages of 2004-05, a number of customers, to have RailCorp made intensive prepara- ITSRR’s Survey of CityRail customers adverse experiences without this tions for the new CityRail timetable published in February 2005 found being evident on these fi gures. For to be introduced in September that the secure environment, staff example, the availability of ticketing 2005. RailCorp expects the new politeness, website information and does not indicate the length of timetable to signifi cantly improve station cleanliness met customer time taken by a customer to buy on-time running. This is due to expectations. tickets. Another example of this is an expectation of some reduction the type of communications issues in delays arising from particular The Rail Performance Agreement’s indicators under the heading of identifi ed in a report of the Auditor incidents, and also an expectation General regarding CityRail’s man- of a reduction in some incident secure environment include of- agement of service disruptions6. types, for example train crew fences against persons e.g. assault, robbery, and vandalism. The data related incidents. However, fewer Capacity-Demand Matching services will operate (including at shows a decline in offences against persons in 2004-05, continuing off-peak times). ITSRR intends to Capacity-demand matching relates an earlier trend. RailCorp notes closely monitor performance once to crowding. As noted above, that this decline coincides with the the new timetable is introduced. crowding was rated by customers introduction of Transit Offi cers onto as one of the top three areas where The rail Clearways Plan, noted the network. expectations of CityRail were not in last year’s report, is expected being met in 2004. to improve CityRail reliability. Customer service indicators include availability of ticket machines, Construction of the fi rst of the Crowding is generally a function of public address systems, closed 15 projects, the Bondi Junction the number of train services, the circuit television (CCTV) and help turnback and the Macdonald- timetable, and the number of town stabling, has commenced. points. RailCorp notes that all

Table 2.2: Passenger facilities available Target RailCorp’s reported performance CityRail ticketing systems 98.5% 99.5% CCTV availability 99.0% 99.6% Help point availability 99.0% 99.8% PA systems on trains 99.0% 98.9% Source: RailCorp reports to the Ministry of Transport.

6 Managing Disruptions to CityRail Passenger Services NSW Auditor Generals Report, Performance Audit, June 2005.

68 ITSRR Annual Report 2004 - 05/Reliability Report passengers at a given time. In particular lines in particular time measure patronage and crowding. urban transit systems such as frames, provisions that were not in CityRail, crowding occurs during the Rail Performance Agreement ITSRR will be discussing these commuter peak hours, e.g. during 2004-05. This places greater matters with RailCorp and the journeys to and from work, and importance on crowding indicators Ministry of Transport in 2005-06, schools. There are well known under the Rail Performance Agree- as part of the intense monitoring “imbalances” in passenger demand ment. of performance under the new through the day, and system design timetable, and in the context of and operation aim to provide ca- In 2004-05, RailCorp reduced comments suggesting that the pacity for peak loads while seeking the number of CityRail services. substantial increase in petrol prices to minimise costs. Typically rail RailCorp also sought to improve through 2005 is likely to increase systems have large and relatively performance in the p.m. peak by public transport usage. fi xed capacity, meaning they are allowing for greater fl exibility to Complaints Handling not as fl exible as some other modes recover from incidents during and in adapting to changing demands. after the a.m. peak. Such measures RailCorp provides complaints data Operational matching of capacity should not increase reported to ITSRR. Together with surveys with demand is achieved via the crowding, as the affected services of customer satisfaction, this is timetable. were relatively lightly patronised. The new timetable, introduced in potentially an important source of NSW Government standards for September 2005, further reduces information about perceptions of crowding include that only 5% of services including off-peak services CityRail services. Table 2.3 provides peak period train services should a summary for the number of com- have a load factor of more than Notwithstanding this and a re- plaints and time taken by RailCorp 8 135%, i.e. crowding is a load ported decline in overall patronage, to respond in 2004-05. crowding on trains as measured by greater than 135%7. In terms of In 2004-05 complaints increased a Millennium train with a seating CityRail increased signifi cantly in by 2.2% compared with 2003-04. capacity of around 900, this would 2004-05. In the result for March The overwhelming reason for this equate to a train load of near 2005, crowding exceeded target was the increase in complaints 1220. levels with 12% of surveyed peak trains reporting crowding compared about on-time running, some CityRail measures the crowding on with, compared with 8% in Septem- 283 per month or 20% above trains by twice-yearly surveys of ber 2004 and 7% in March 2004. that for 2003-04. Complaints in certain trains at particular stations. most other categories declined or CityRail also conducts some counts CityRail also has been noting some remained stable, except for com- of passengers passing through increase in the number of passen- plaints about the timetable which barriers at particular stations. gers passing through CBD station increased by 59%. These results, barriers. These results, of fewer and the increase in complaints on The previous CityRail Services passengers but crowding on more nearly all lines, refl ect CityRail’s Agreement specifi ed the number trains, may give rise to questions performance in the year. of train services to operate on about the methodologies used to

7 The indicator referred to in reports under the Rail Performance Agreement is: “percentage of Peak CityRail suburban trains at a load factor above 135% and where there was no alternative train within 15 minutes”. The target is 5% by 2008. The reference to peak hours in this indicator refl ects the likelihood that these will be the more crowded trains. 8 RailCorp reported that total CityRail patronage fell by 4.5 million or 1.6% in 2004-05. Rail Corp has suggested that the availability of Pensioner Excursion Tickets on private buses may account for a signifi cant proportion of this fall – CityRail estimates patronage from ticket sales.

ITSRR Annual Report 2004 - 05/Reliability Report 69 Table 2.3: Complaints and Complaint Resolution, CityRail coaches, on-time running is re- 2004-05 ported for train services only. Table Average monthly complaints/days to resolution 2.5 shows that on-time running (to 10 minutes) averaged 79% across Topic Number of complaints the year. There was consider- - on time running 1197 able variation in on-time running - timetable 146 between the different services - service 184 with the Sydney–Melbourne XPT - about staff 284 attaining only 53%. There was also - information 209 considerable variation between months with a low of 60% in April - ticketing 266 2005 and a high of 83% in August - safety and security 199 2004. It was noted that on-time - cleanliness and facilities 178 running has, in recent years, fol- Total 2737 lowed an oscillating pattern. Close with customer Average days to resolution CountryLink reduced the maximum - phone 4.1 days (a) speed of its trains from 160km/h - letter 36.9 days (a) to 120km/h following the level - web 9.1 days crossing collision and derailment (a) Compares with Customer Services Commitment standards of 5 days for following up of a train at Baan Baa in the north customer complaints by phone, and 21 days for responding to letters. west of the State in May 2004.

The main contributor to the late an increase in sectional running running of CountryLink trains times between Sydney and Albury. was faulty rolling stock which Times taken to respond to custom- There were major changes to the accounted for 14% of the lost ers decreased on average, due to system for making reservations: time. Speed restrictions, generally faster turn-around of complaints the Sydney Call Centre closed; the attributable to the condition of made via 131500. It should Newcastle Call Centre opened; the track, accounted for 12% of be noted that most complaints and an online booking system was the lost time. The most frequently are made to this line. However, introduced. The latter was part of occurring incidents which cause response times increased in some an upgraded website. other categories for complaints delays relate to passengers and made via a letter or online. Although CountryLink operates luggage; however, such incidents

CountryLink Table 2.4: CountryLink Passengers and Seat Utilisation 2004-05 (a) The declining trend in CountryLink CountryLink Passengers monthly Seat utilisation (load patronage that commenced in late service regions average factor) 2001 continued in 2004-05, with North 51802 47% a fall of 8 per cent compared with North-West 16567 54% 2003-04. Passengers and seat utilisation are shown in Table 2.4. West 24797 37% South 49241 46% There were no major operational (a) Includes replacement coach services. changes during the year apart from Source: RailCorp August 2005.

70 ITSRR Annual Report 2004 - 05/Reliability Report are relatively short in duration. Table 2.5: CountryLink Train On-time running 2004-05 (a) Customer service indicators include CountryLink service regions Performance to Performance to 30 complaint management and 10 minutes minutes bookings. At this time indicators North Coast 78.4% 91.3% for internal carriage condition (e.g. North-west 73.7% 86.5% seating) are yet to be developed. West 79.0% 91.6% There were 1,832 complaints during South 53.1% 70.3% the year. This represents a 36% Canberra/Griffi th 71.8% 89.9% reduction in complaints compared (a) Includes replacement coach services with 2003-04. One-quarter of the Source: RailCorp August 2005. complaints related to the quality and level of service. Table 2.6: CountryLink Bookings- Sydney, Newcastle, Indicators of responses to bookings Melbourne Call Centre Performance calls are shown in Table 2.6. In CountryLink services Target (b) Performance Performance comparison to result for 2003-04, 2003-04 2004-05 each of these has increased. It must be noted that performance reported Percentage of calls >80% Average 35 Average 46 for time taken to answer calls does answered within 30 seconds seconds not strictly accord with the target. seconds However, the average response time Average call time <150 156 seconds 160 seconds is greater than the target. seconds Percentage of calls not <8% 3.0% 6.3% answered (a) (a) Number of calls received to numbers of calls lost. (b) Targets sourced from 2003-04 Annual Reliability Report. Sources: 2003-04 Annual Reliability Report, RailCorp August 2005.

ITSRR Annual Report 2004 - 05/Reliability Report 71 Metropolitan Rail Area Ministry of Transport in the Rail number of infrastructure incidents Network Performance Agreement. These causing delays as shown in Figure include an aggregated track condi- 2.2 which shows infrastructure A number of infrastructure indica- tion index, the number of broken performance over the medium tors are referred to in the Rail rails and misalignments, and term. Performance Agreement for the the number of temporary speed Metropolitan Rail Area. While the restrictions. Agreement does not set standards or targets for these, the Ministry ITSRR examines these indicators, of Transport’s interest appears to and a larger range of more specifi c be in the understanding of trends. reports in advising Government However, some targets are set about current condition and within RailCorp. future prospects. This work is a continuation of monitoring that Infrastructure incidents that may commenced with an increase in cause train delays include failures Government funding for rail, an in signalling equipment and track increase that was used to support faults. In some cases, temporary a larger long-term program of rail speed restrictions are imposed due infrastructure Major Periodic Main- to track condition, and these may tenance (MPM) renewals work. also result in train delays. The MPM works cover aspects such as rail replacement, sleeper Since 2001, there has been in- renewal and improvement, contact creased infrastructure maintenance wire renewal, ballast depth and and renewal work on the Metro- drainage improvement, and points politan Rail Area network and this machine replacement. continued in 2004-05. However, in 2004-05 the number of infra- The aim of the program is to structure incidents causing train achieve acceptable network delays was still signifi cantly above performance, a “steady state”, and RailCorp’s targets. The second half over time, eliminate a backlog of of the year saw some evidence of MPM work that had been allowed the start of an improving trend, to develop up to 20019. although given the relatively short period of time – and the possibility Overall, subject to some qualifi ca- of seasonal infl uences - it is not tions, there has been an improve- possible to draw fi rm conclusions ment in the condition of infrastruc- at this time. ture, with the increases in MPM work under the “steady state” Condition indicators program over the past few years being a likely contributing factor. RailCorp reports a number of There also has been an apparent condition related indicators to the improvement since late 2004 in the

9 See: The Godfrey Report - Independent Review of Rail Infrastructure Corporation (RIC) Metropolitan Maintenance Funding and Related Issues - October 2002, at the Ministry of Transport’s website.

72 ITSRR Annual Report 2004 - 05/Reliability Report Fleet the importance of achieving good later years. Initial work on time- results for these facets of CityRail’s table design for these will need to ITSRR also monitors the perform- operations. commence in the near future. ance of CityRail’s fl eet. In 2004-05 RailCorp commenced providing Further timetable changes are ITSRR’s review of on-time running reports to the Ministry of Transport mooted for the introduction of of CityRail services published in on fl eet reliability including me- major capital works including the June 2004 indicated the impor- chanical failure rates and incidents. Epping-Chatswood rail link in 2008 tance to service delivery of RailCorp and extensions to the system in Figure 2.3 shows fl eet incidents over the medium term – it is largely ™wÁ?ÄÍÁÖWÍÖÁjˉ™W‰aj™ÍÄËW?Öĉ™~Ëaj?ßÄË͝Ë+j?Ë ‰Íß-?‰ËÄjÁ܉WjÄËMß˔™Í† ֐ßˤšššËˆË֙jËÔååy analogous to the trends in Figure 80

2.2. However, it does show a Infrastructure 70 Infrastructure trend substantial rise occurring in late 2003 and early 2004, without a 60 corresponding decline towards the 50 end of the period. 40 Incidents In 2004-05, RailCorp instituted a 30 number of initiatives to address 20 these issues including action programs to address problems with 10 doors, brakes, traction systems 0 9 0 1 1 1 1 2 2 2 3 3 4 4 4 -99 99 9 00 00 -00 0 0 -01 -0 0 -02 -03 -0 0 0 -04 05 p- v- v- n-01 r-0 y- v- n-02 p-0 v-0 v- n-04 v-0 Jul e Jul a Jul ep o Jul Jul ep o Jul and communications. RailCorp’s S No Jan- Mar- May-00 Sep-00No Ja M Ma S N Ja Mar-02May-0 Se No Jan-03Mar-03May-03 S N Ja Mar-0May- Sep-04No Jan-05Mar-05May- Passenger Fleet Maintenance area is Month amending the scope of component ‰~ÖÁjË Ô±Ô]Ë jÍÁ¬‰Í?™Ë -?‰Ë
Áj?˙jÍݝÁ]Ë ™wÁ?ÄÍÁÖWÍÖÁjË ™W‰aj™ÍÄË change out programs, reviewing ֐ßˤšššË͝Ë֐ßËÔååyË technical maintenance plans, .ÖÁWj]Ë-?‰ Á¬Ë.j¬Íj”MjÁËÔååy increasing staff training, and is seeking to eliminate a backlog of jjÍ˝¬jÁ?͉™Ë‰™W‰aj™ÍÄËW?Öĉ™~Ëaj?ßÄË͝Ë+j?Ë ‰Íß-?‰ËÄjÁ܉WjÄËMß˔™Í† major component change outs. ֐ßˤšššËˆË֙jËÔååy 180

Fleet Operations 160 Comments and outlook for Fleet operations trend RailCorp in 2005-06 140

120 The major issue for RailCorp in 100 2005-06 will be the implementa- 80 tion of the new timetable starting Incidents in September 2005. RailCorp 60 expects this to result in an improve- 40 ment on some important opera- 20 tional measures, notably on-time 0

9 0 1 1 2 2 3 3 3 4 4 5 -99 -00 -00 00 -00 -01 0 -01 -0 -02 02 -0 -03 -03 04 04 -04 -0 v-99 n-01 r v v n-04 v running, cancellations and skipped Jul o Jul Jul-01 Jul Jul Jul- Sep-9N Jan Mar-00May-0 Sep- Nov Ja Ma May- Sep-0No Jan Mar-02May-02 Sep-0Nov- Jan Mar-03May-0 Sep-0No Ja Mar- May-0 Sep-0No Jan Mar-05May-05 stops. ITSRR’s survey of CityRail Month Customers (which was not limited ‰~ÖÁjËÔ±Ï]Ë ‰Íß-?‰]ːjjÍË™W‰aj™ÍÄË֐ßˤšššË͝Ë֐ßËÔååy to peak hour services), confi rmed .ÖÁWj]Ë-?‰ Á¬Ë.j¬Íj”MjÁËÔååy

ITSRR Annual Report 2004 - 05/Reliability Report 73 addressing incidents and the Geographic coverage This was under the control of Rail factors underlying them. ITSRR’s Infrastructure Corporation (RIC) as focus on incidents in 2004-05, The Line CSO covers the Rail it had been in 2003-04 (see Map particularly on infrastructure and Infrastructure Corporation (RIC) 2.1). After 4 September 2004, the fl eet incidents, will continue. Country network (see next page for Line CSO covered only the (smaller) an outline of the line CSO, under Country Regional Network control- A challenge remains in understand- “Governance”). Until 4 September led by RIC (see Map 2.2). ing demand. As indicated previ- 2004, the Line CSO continued to ously, customers viewed crowding cover the full Country Network. as one of the top three areas where their expectations were not ?¬ËÔ±¤ËË !.8Ë-?‰Ë!jÍݝÁË being met in 2004. Up until the implementation of the new time- table in September 2005, CityRail conducted two surveys of crowding each year. Given the new timetable, 8jÁÁ‰ÄË Ájj the importance of understanding Áj™Ë‰ ÖMM these issues will increase. ITSRR has some questions about RailCorp’s +?ÁjÄ Á?a”j?aÝ current methodologies and will ‰Í†~Ý be focusing on demand issues in ?W?Á͆ÖÁ 2005-06. Í?”Ö™aÁ? ÖMÖÁ™ The Country Network and Rail Infrastructure Corpora- tion

Framework

?¬ËÔ±ÔËË !.8Ë-?‰Ë!jÍݝÁË”™‰ÍÁjaËwÁËÁj‰?M‰‰ÍßˬÖÁ¬ÄjÄËMßË0.-- The Country Network is used ®
ÖÄÍÁ?‰?™Ë-?‰Ë0Á?WË Á¬Á?͉™Ë”™‰ÍÁË͆jËÁj”?‰™‰™~ː‰™jÄËwÁËÁj‰?M‰‰Í߯±Ë predominantly by freight trains; however, some passenger trains also use the the network.

Substantial changes to the frame- 8jÁÁ‰ÄË Ájj works for the Country Network Áj™Ë‰ ÖMM took place during 2004-05. From

4 September 2004, part of the +?ÁjÄ Á?a”j?aÝ network was leased to the Austral- ian Rail Track Corporation (ARTC), ‰Í†~Ý ?W?Á͆ÖÁ and this was no longer fi nanced by Í?”Ö™aÁ? NSW. The Government fi nanced ÖMÖÁ™ the remainder of the network, the Country Regional Network, under new arrangements.

74 ITSRR Annual Report 2004 - 05/Reliability Report Finance for the Country Regional Governance Government policy priorities. In this Network comes from the payment role, the Agreement’s reports relate of access charges by rail operators, The relationship between RIC and to higher level service outcomes, and from the NSW Government via Government agencies changed with rather than the detailed monitoring a RIC funding agreement. As such, the advent of the Funding Agree- of infrastructure condition. the network is within the scope of ment in 2004-05. The previous Line Therefore these new funding agree- reliability monitoring10. Like the CSO required RIC to develop a fi ve Line CSO, the funding agreement is year Network Management Plan; ments do not require the Govern- intended to cover the gap between report against the Plan; participate ment rail organisations to report to network access charges and the in a Consultative Committee; and the Ministry of Transport on asset cost of maintaining infrastructure to achieve certain performance stand- plans or asset condition. Rather acceptable standards. Government ards12. The performance standards they focus on transport outcomes. funding is by far the largest source were technical measures relating to In the case of the Country Regional of RIC’s income. track quality, track condition indices, Network, these outcomes relate and temporary speed restrictions. to the availability of the network From 4 September 2004, the inter- These were reported to the Ministry for use by certain trains, and 14 state lines outside of the electrifi ed of Transport from RIC on a line for pathing . Reporting to the area were leased to and controlled segment basis13 . In addition to the Director General of the Ministry of by the Australian Rail Track Corpora- Line CSO, RIC provided certain more Transport occurs quarterly through tion (ARTC). ARTC also leased the aggregate performance information a cross-agency Committee including Hunter Valley lines. ARTC is not in to its shareholders, the Premier and RIC and the Ministry. receipt of NSW funding for these the Treasurer, via Treasury through lines. Finance for the ARTC network the periodic reports on its State- Country Regional Network: Standards and Results comes from the payment of access ment of Corporate Intent. charges by rail operators, and from the Commonwealth. As such, it is Under the new approach, while The RIC Funding Agreement is for largely outside the scope of ITSRR’s reporting under the Statement fi ve years. It requires RIC to report reliability monitoring. However, of Corporate Intent remains un- to the Ministry of Transport on tem- the NSW Government’s lease with changed, the Ministry of Transport, porary speed restrictions (TSRs), the ARTC does have some performance consistent with its position on availability of train paths under the standards and these are outlined transport reform, has revised the Train Operating Conditions manual, below. reporting arrangements for RIC and as well as some other indicators, for RailCorp. The revisions are in the each at an aggregate level. At this As a result of the smaller geographic new funding agreements. time, draft benchmarks have been area it covers, the RIC funding developed but not fi nalised. agreement is for $110 million per The new funding Agreement annum, compared with $285 millon provides a reporting tool for the RIC has provided some information per annum for the former Line Ministry to demonstrate that to the Ministry of Transport for CSO11. services delivered by Rail Infrastruc- 2004-05 which is summarised in ture Corporation (RIC) deliver NSW Table 2.7.

10 The scope of reliability monitoring and reporting relates to organisations owned or fi nanced by the NSW Government. 11 Budget Paper No. 3 refers to $123m rather than $110m. The difference is additional Government funding for the Restricted or R lines on the Country Regional Network. These lines primarily are used by trains carrying grain. 12 See: ITSRR Annual Reliability Report 2003-04. 13 The R lines were not subject to these reliability performance standards under the Line CSO. 14 Pathing refers to the use of the network by a train. Trains are permitted onto the network by train control at particular times. The location and time of entry, transit, and exit are known as a “train path”. Train operations in terms of lengths, weights, speeds etc. are set in the Train Operating Conditions manual and this affects potential paths.

ITSRR Annual Report 2004 - 05/Reliability Report 75 Table 2.7: RIC - Reports to Ministry of Transport under the Funding Agreement Issue Indicator 2002/03 2003/04 2004/05 Temporary speed Time lost (minutes) restrictions (TSRs)15 . passenger lines 23 18 59

. branch lines 353 400 449 Track condition16 Track Condition Index (TCI)(a)

. west region 47 48 44 . north region 60 58 Na . south region 57 57 Na Track condition Track Quality Index (TQI) (a)

. west region Na Na 38 . north region Na Na 35 . south region Na Na 48 Tonnage Million gross tonne 274 245 301 kilometres (gtk) (a) The TCI is not directly comparable to the TQI – the TQI fi gures generally are lower for the same geometric quality. Source: Reports from Rail Infrastructure Corporation to the Ministry of Transport July, 2005

15 Average time lost (minutes) for quarter based on the last day of each 3 month period. 16 A lower fi gure represents better overall track geometry. A decreasing TCI/TQI indicates improving track geometry.

76 ITSRR Annual Report 2004 - 05/Reliability Report In 2004-05 there was a signifi cant This is a cause for concern, par- growth in general freight and coal, increase in time lost due to speed ticularly when combined with the and some recovery in grain. restrictions, particularly on pas- following: senger lines. RIC’s advice to the Ministry also • lack of any other information raises some issues concerning This can be attributed to factors, from RIC on the condition the restricted lines (also known such as: and performance of rail as “R-lines”)17. In recent years, infrastructure across the maintenance on these lines has • a deteriorating condition of Country Regional Network; been minimal while there has been infrastructure; • the known high level of consideration of policy options • an increased level of maintenance backlog across regarding grain transport18. The maintenance work (temporary the Country Regional Network condition of the lines has deterio- speed restrictions are normally at the end of 2003-04; and rated and during 2004-05 several imposed immediately following were withdrawn from service, • the known poor condition of maintenance work as a safety including withdrawals following “Restricted Lines” resulting in precaution); safety incidents19. suspension of train operations • a more conservative approach on some lines. In April 2005 and in July 2005, the to safety taken by an Government announced increased infrastructure maintainer; and While not required under the funding for works on the 11 R-lines • a combination of the above. funding agreement, RIC also which remain operational. The reported track condition statistics works were broadly outlined in RIC acknowledges that time lost to the Ministry at the end of 2004- terms of sleepers to be replaced, due to speed restrictions is above 05. These included reports for line ballast and tamping activities, and historic levels but attributes this segments. It can be seen from bridge repairs etc. The aim is to to on-going maintenance work Table 2.7 that the track condition enable infrastructure improvements and predicts an improvement in statistics are more aggregated than and secure the operation of the 2005-06. that required under the former lines while the Government fi nalises Line CSO – which included refer- a long term lease plan with the However, it is interesting to note in ence to the component elements grain industry 20 . RIC’s fi nal 2004-05 report to Min- of the indexes. Also, the basis of istry of Transport that the worse reporting has changed from Track The transport task on the Country trends with respect to time lost due Condition Index to Track Quality Regional Network is measured to speed restrictions occur in the Index and these different indexes by million gross tonne kilometres North Region and the South Region are not strictly comparable. (MGTK). To some extent this is – the two regions where the actual seasonal, and affected by annual scope of MPM and Capital work Tonnages on the Country Regional fl uctuations in grain volumes, delivered in 2004-05 was less than Network increased signifi cantly in particularly on the R-lines. On planned. 2004-05, by 22%. The increase is other lines, coal, minerals and largely attributable to strong general freight tonnages increased in 2004-05.

17 These are lines on which operations are restricted in terms of train weights and speeds. They are used primarily for transporting grain 18 A more complete explanation of the R-lines and policy issues is contained in the Grain Infrastructure Advisory Committee Report January 2004. 19 For example, part of the Griffi th-Hillston line was withdrawn from service following a derailment caused by track condition in March 2005. As a further example, rail operations on the Camurra-Weemelah line were suspended in February 2005 during an ITSRR safety audit of RIC. 20 See: $69 million Upgrade for Western NSW Grain Lines, Minister for Transport News Release 7 July 2005.

ITSRR Annual Report 2004 - 05/Reliability Report 77 Reporting by RIC to Treasury under The leased network is expected Comments and outlook for the Statement of Corporate Intent by ARTC to support an increasing 2005-06 remains broadly unchanged. These level of traffi c in future years. As It is not possible to comment in reports mainly deal with fi nancial such the lease and accompanying detail on system performance, or data but some performance agreements require ARTC to invest issues arising from assets, given information, including aggregated substantial sums in upgrading that reporting is provided at an measures of track quality, and of the network over the next few aggregate level. It should be noted speed restrictions for the network, years. This includes major capacity that from a safety perspective are included. The basis of the track enhancements in the Hunter Valley ITSRR’s interests are in both the quality index changed in 2004-05 for coal, and improvements in line ARTC-leased and Country Regional and is different to the former speeds and transit times for the Network. However, from the reli- track condition index for which a interstate corridors e.g. Melbourne- ability perspective, ITSRR’s primary 22 target was set. Speed restriction Sydney . concern is the Country Regional performance and delays exceeded Network, which is publicly funded, i.e. was worse than the target. RIC The lease requires measurement and reporting of a number of rather than the network leased to advised that this was mainly due the ARTC. to Major Periodic Maintenance indicators, referred to as KPIs. works in progress with additional These generally are for the network Most of the above reported work being planned in 2005-06. as a whole, rather than for par- results for the Country Regional As MPM is delivered, the results ticular lines or line segments. They Network might be consistent with are expected to move towards the include: a well-managed, albeit lightly target. • transit time delays by corridor used system, in reasonable condi- (except Hunter Valley) – these tion, adequately maintained and ARTC Lease Network delays relate to measures of the fi nanced and with no major current Standards and Results impact of operating restrictions or future issues. However, for a that may be imposed in network that has been deteriorat- The NSW Government’s lease to advance of maintenance being ing, higher-level reporting can mask ARTC for the interstate mainline conducted; poor general network condition, track and Hunter Valley network large and escalating backlogs and • track condition index (except is for 60 years. The lease requires major current problems that may Hunter Valley); ARTC to provide an Annual Condi- require large fi nancial injections. • trains exiting on-time; tion Report to RIC each year. This For this reason, during 2004-05 Condition Report is to cover a • large rail defects; ITSRR sought more specifi c and number of indicators. At the time • sleeper population and detailed information from RIC on of writing this report was not avail- replacement; the condition and performance able on behalf of the Government • bridge restrictions and of the Country Regional Network RIC has asked ARTC to provide the replacement; to allow a comparison with the report by end September 200521. • signal failures; and state of the network as reported The following comments therefore in the Annual Reliability Report are limited to outlining some • maximum speed and axle load for 2003-04. ITSRR had made aspects of the lease and its provi- combinations. similar requests to RailCorp for the sions. Metropolitan Network.

21 In future years this report will be available for inclusion in the ITSRR Reliability Report. 22 See: Australian Rail Track Corporation website North South Corridor Strategic Plan 27 May 2005.

78 ITSRR Annual Report 2004 - 05/Reliability Report Unlike the case with RailCorp, this the ARTC’s future works program more specifi c information has not and the nature of the lease, it is been provided by RIC to ITSRR to be expected that the focus will for the period beyond September be on capacity and transit times 2004. In these circumstances, rather than more detailed baseline ITSRR is unable to advise on current infrastructure condition indicators. performance or future sustainability of the Country Regional Network. Generally, the condition indicators need to be viewed over a period ITSRR does note that information of time (e.g. several years). At this provided to the Ministry of Trans- stage, the fi rst year of the lease, port under the funding agreement insuffi cient information is available outlines an increase in the impact to assess current or expected future of temporary speed restrictions performance. and issues with the R-lines. These factors do not support a view that the underlying network is in a good and improving condition. Rather they suggest that detailed condition monitoring should be of increasing importance to stake- holders. It therefore is important that reporting procedures are in place that can capture the detail that provides the fuller picture of infrastructure condition.

Apart from this, RIC is in the process of providing ITSRR with information it is using in the development of its 2005-06 asset management plan, and associated forward works programs, for the Country Regional Network.

In relation to the ARTC-leased network, information was not available at the time of writing to assess whether performance is at the standard envisaged by the lease. This is a result of the current reporting cycle in which ARTC has been requested to provide relevant information to RIC by the end of September 2005. However, given

ITSRR Annual Report 2004 - 05/Reliability Report 79 3. Bus

Background bus operations, and the introduc- early 2007 for this to be realised. tion of new performance measures In the interim, the contract requires As indicated in the 2003-04 and reporting systems. the operator to record relevant Annual Reliability Report, bus data from the date of service com- services in NSW are provided under The new bus contracts apply mencement. statutory contracts administered equally to the privately owned bus by the Ministry of Transport. The operators and to the Government’s A Service Quality Incentive also is to 2004-05 year saw the initiation State Transit Authority (STA). be included. This is to deal with a of the Government’s Bus Reform Beyond 2004-05, Community number of matters relating to serv- Program. Also in 2004-05, the In- Service Obligation payments will no ices including passenger complaints, dependent Pricing and Regulatory longer be provided to STA. stakeholder views of the operator Tribunal (IPART) sought a submis- and its approach to services, bus sion from ITSRR on the reliability of The new bus contracts loads, bus cleanliness, and customer buses. The following comments perceptions. The Ministry of Transport’s new draw largely on this submission. pro-forma metropolitan bus Status of Bus Reform in 2004-05 contract24 requires operators Bus Reform to regularly provide data to the In 2004-05 Bus Reform was Ministry about matters under three focused on the Sydney metropolitan The Reform Program broad headings: Non-fi nancial area. The Ministry of Transport performance, Operational Perform- has established 15 regions in the In mid 2004, the Government an- ance Regime, and Service Quality metropolitan area, each of which nounced its intention to introduce Incentive. will be covered by a single contract new contracting arrangements for covering both regular route and buses in NSW. The main elements Non-fi nancial performance indica- school buses. STA is contracted for of these fl owed from a review of tors include revenue km, fl eet age four of these regions. buses by Mr Barrie Unsworth23. profi le, and passengers carried. The Government’s response to Revenue km might be seen as a There are a number of stages in the review is on the Ministry of proxy for coverage of bus services implementing the Bus Reforms. A Transport’s website – it is known as in the contract area in terms of summary of progress is in Table 3.1. Bus Reform. frequency and routes. While the program has commenced for nearly all of the metropolitan As a result of Bus Reform, the The Operational Performance area, the operational changes are at Ministry of Transport and bus Regime is intended to measure their initial stage. operators are entering into new the punctuality and “reliability” of 25 bus contracts. These contracts bus services . This will focus on Activation of contract provisions are largely based on the premise disruptions to scheduled regular of exclusive rights to an area, route bus services. The regime All provisions of the contract start similarly to before, with allowances will commence with the new at the commencement date. From for cross-regional service needs. contracts and mature over time. It that time, provisions come into effect However, there is a reduction in the is expected that measurement of requiring regular reporting of data to number of contract regions in the performance will improve over the the Ministry of Transport. metropolitan area, changes in the next few years and move towards arrangements for subsidisation of full automation. It may take until

23 Ministerial Review of Bus Services in NSW – Final Report (Unsworth) February 2004. 24 A pro-forma has been provided to ITSRR on a commercial-in-confi dence basis. 25 In this context, “reliability” is measured by (the absence of) service cancellations.

80 ITSRR Annual Report 2004 - 05/Reliability Report Table 3.1: Status of new bus contracts Region Description Service Commencement 1 Penrith, Kurrajong, Warragamba & Blacktown Expected 1 October 2005 2 Badgerys Creek, Bringelly, South West Sector 1 July 2005 3 Wetherill Park, Bosley Park & Liverpool Expected 1 October 2005 4 Glenorie, Castle Hill, Blacktown & Parramatta 1 August 2005 5 Strathfi eld, Bankstown, Hurstville & Lugarno 1 July 2005 6 Sydney CBD, Parramatta, Strathfi eld & Kingsgrove 1 July 2005 7 North Sydney, Chatswood, Epping & Parramatta 1 July 2005 8 Palm Beach, Frenchs Forest & North Sydney 1 July 2005 9 Sydney’s Eastern Suburbs & CBD 1 July 2005 10 Bankstown, Sutherland & Engadine 1 January 2005 11 Cronulla, Kurnell, Miranda & Bundeena 1 April 2005 12 Berowra, Hornsby, Chatswood & St Ives 1 June 2005 13 Parramatta, Fairfi eld, Bankstown & Liverpool 1 May 2005 14 Chatswood, Frenchs Forest, Terrey Hills & Gordon 1 April 2005 15 Campbelltown, Camden & Appin 1 June 2005 Source: Ministry of Transport August 2005.

The contract makes provision for the in Regions 10 (Southern Sydney) The Ministry of Transport intends Operational Performance Regime to and 13 (Bankstown/Liverpool), will to use Region 14 (Northern come into effect once a valid method commence in 2005-06. Sydney) as a pilot for the Annual of monitoring punctuality is in place. Service Review process. This will The Regime will be piloted and Network development is also being commence in November 2005. trialled prior to its full implementa- undertaken in signifi cant parts of Following assessment of this tion. It is expected that this process Region 1 (Penrith etc.) and Region approach, services in each region will take 2 years. 4 (Glenorie etc.) to support the will be reviewed during 2006, introduction of the North West either through the development Community consultation Transitway. Key dates in these of a network plan or through the processes are in Table 3.2. annual service review process. Under the contracts, signifi cant network changes and regular Table 3.2: Planned network development to end 2006 service reviews may be implement- Region 10 Region 13 Regions 1 and 4 ed after community consultation. (N-W Transitway) The Ministry of Transport advises Regional Planning July 2005 Sept 2005 Feb 2005 that substantial preparatory work Forum for this process was undertaken Community Sep 2005 Nov 2005 April 2005 in 2004-05. The fi rst signifi cant Consultation network changes, to support the Network Approval Late 2005 Early 2006 Mid 2006 development of strategic corridors Implementation Mar 2006 June 2006 Dec 2006 Source: Ministry of Transport August 2005.

ITSRR Annual Report 2004 - 05/Reliability Report 81 Current performance results buses is reported at 95%. This is reports made by the private opera- consistent with the target noted in tors under the new bus contracts. Background the Customer Commitment, and While the Ministry indicates it is only slightly lower than the result on target to achieve the reliability Bus Reform is being progres- for 2003-04. reporting requirements set out sively rolled out. To date, this has in the new bus contracts, at this Service availability relates to cancel- concentrated on the metropolitan time the Ministry has not collected lations. It can be seen that the area. Refl ecting the current detailed reports on all aspects of number of reported cancellations progress with implementation of private bus operator performance. remains very low – the same level the new arrangements, 2004-05 This refl ects the current status of as for 2003-04. saw most operations under the the Bus Reform program. existing “old” bus contracts. As STA reported that the average fl eet As shown in the ITSRR 2003-04 noted in last year’s Annual Reli- age increased since 2000-01 from Annual Reliability Report, the ability Report, there are substantial 11.7 years to 13.0 years in 2003- Ministry of Transport has been issues in gaining information 04, before declining somewhat collecting some bus self-reporting under the old arrangements. The to 12.8 years in 2004-05. With a data. An important aim of the self information available to ITSRR is fl eet of around 1700 buses, signifi - reporting scheme is to improve the summarised below. cant reductions in fl eet age may reporting culture of the industry. require substantial bus acquisition The Ministry received monthly State Transit Authority programs. It is anticipated that reports from over 90% of opera- new bus acquisition in 2005-06 The State Transit Authority (STA) tors in 2004-05, including from will bring STA within the target of continued to operate under the non-metropolitan operators. A less than 12 years. Community Service Obligation summary of the self-reporting data provided by the Ministry to ITSRR is agreement in 2004-05. Perform- Private bus operators ance is shown in Table 3.3. The shown in Table 3.4 on-time running result for the ITSRR has requested advice from 2004-05 year for STA’s Sydney the Ministry of Transport on the

Table 3.3: State Transit Reported Sydney Bus Performance 2004-05 Sydney Buses Passengers 200.3m (a) On-time running (b) 95.0% Service Availability (c) 99.4% Complaints per 100,000 trips (d) 11.9 Fleet average age (e) 12.8 years % of fl eet wheelchair accessible 34.7% (a)Includes Newcastle buses (b) To within 5 minutes of timetable at terminus on route. (c) Timetabled services operating. (d) Compared with a target of <15 complaints. (e) Compared with target of <12 years. Source: Ministry of Transport submission to IPART July 2005. Budget Paper No. 3, 2005/06.

82 ITSRR Annual Report 2004 - 05/Reliability Report Table 3.4: Ministry of Transport - Private Bus Self-reporting Data 2004-05 Bus Trips Number % of Bus trips reported Total 4,719,705 na Early 78 Less than 0.01% Late 12,655 0.27% Missed/cancelled 707 0.01% Full load on route 678 0.01% Source: Ministry of Transport September 2005

Data issues a keen interest in the methodology measured at some major bus stops and process by which the Ministry in the metropolitan area, rather The punctuality fi gures from both of Transport collects information than at terminus points27. Key STA and from the self-report- from bus operators, in areas such results are shown in Figures 3.1 to ing- scheme appear high when as patronage and operational 3.3. These generally show on-time compared with other transport performance. running (at bus stops) to be lower modes, especially given comments than reported to the Ministry (for such as by the Ministry of Transport As noted above, the new bus terminus points). on the impact of a “signifi cant contracts – which also apply to increase in traffi c congestion” 26. STA - are intended to address Figure 3.1 shows within the survey Part of the explanation may lie in these matters and, for example, itself, punctuality appears to be exactly what the punctuality fi gures allow measurement on on-time higher for bus stops near railway represent. For STA’s Sydney Buses running for en-route points. The stations. This would be important the fi gure does not show on-time Ministry currently is negotiating for commuters who may need to running measured with reference implementation details of the change modes. Strong results to terminus points rather than at Operational Performance Regime would be likely to be important for any particular bus stop on a route with each operator, which will service planning and for long-term where passengers may be waiting. result in detailed operator perform- transport planning. Given the scheduling of buses, and ance information in the future. At The relatively low result for the CBD the possibility of en route delays, this time this detailed information may refl ect some traffi c conges- on-time running measured at the is not available. tion. Note however, that this terminus points may well show might be offset to some extent for higher or “better” results than if Bus Punctuality travel within the CBD by a relatively measured at bus stops. Noting that the above will take high frequency of buses. In last year’s Annual Reliability some time, the Ministry of Report, ITSRR noted issues regard- Transport and ITSRR conducted a ing the quality of bus data, in limited survey of bus punctuality particular regarding the limited in November 2004. Punctuality self-reporting data. ITSRR indicated and service cancellations were

26 See: Ministry of Transport Submission to IPART July 2005 at page 23, note (1). 27 On-time running was defi ned as within a 7 minute band of a bus on a particular route at the bus stop – within 2 minutes before and 5 minutes after the scheduled time for the bus. Cancellations were defi ned as bus route services that did not appear to operate.

ITSRR Annual Report 2004 - 05/Reliability Report 83 ¤åå° šå° What the survey measured was ÈÈ° oå° ÈÉ° Èå° on-time running of a particular bus Èå° Éå° y|° (route) service. yå° |å° Figure 3.2 suggests that on-time °Ë™ˆÍ‰”j Ïå° running of bus services at the time Ôå° of survey was marginally lower in ¤å° å° the outer metropolitan area than -?‰Ý?ßËÄÍ?͉™ ?ŽÁËƝ¬¬‰™~ #͆jÁ in the inner area. It is unclear ¬?ã? what effect traffi c congestion may .‰ÍjËÍ߬j have on on-time running in outer ‰~ÖÁjËϱ¤±Ë#™ˆÍ‰”jËÁ֙™‰™~˝wËMÖÄËÄjÁ܉WjÄËrËMßËĉÍjËÍ߬j metropolitan areas. It could be

.ÖÁWj]Ë0.--Ë?™aË ‰™‰ÄÍÁß˝wË0Á?™Ä¬ÁÍËÄÖÁÜjß expected that regular and frequent congestion is to some extent factored into timetables. Thus the

¤åå° results may refl ect the inability of šå° timetables to refl ect variations in oå° ÈÔ° ɚ° congestion among days in particu- Èå° Éå° lar locations. yå° The comments above regarding

°Ë™ˆÍ‰”j |å° Ïå° on-time running measures implied Ôå° there may be some infl uence on ¤å° å° the statistics by the location of the ™™jÁ˔jÍÁ¬‰Í?™ #ÖÍjÁ˔jÍÁ¬‰Í?™ site at which the measurement is jÍÁ¬‰Í?™ËW?͉™ made. For example, measurement of departure from depot might be ‰~ÖÁjËϱԱË#™ˆÍ‰”jËÁ֙™‰™~ËMÖÄËÄjÁ܉WjÄËrˉ™™jÁË?™a˝ÖÍjÁ˔jÍÁ¬‰Í?™ expected to show a higher fi gure .ÖÁWj]Ë0.--Ë?™aË ‰™‰ÄÍÁß˝wË0Á?™Ä¬ÁÍËÄÖÁÜjß than at mid or end route, especial- ly if there is signifi cant unexpected traffi c congestion. The survey by ¤åå° the Ministry of Transport and ITSRR šå° oÏ° also looked at this issue by dividing oå° Éš° the route into start, mid route and Èå° Éy° end route. The results, shown in Éå° yå° Figure 3.3, support this view.

°Ë™ˆÍ‰”j |å° Ïå° Ôå° ¤å° å° .Í?ÁÍ˝wË ‰aË ™aË ÁÖÍjË ¬‰™Í˝wËÁÖÍj wËÁÖÍj 4RIPLOCATION ‰~ÖÁjËϱϱË#™ˆÍ‰”jËÄjÁ܉WjÄËrËÍÁ‰¬ËW?͉™

.ÖÁWj]Ë0.--Ë?™aË ‰™‰ÄÍÁß˝wË0Á?™Ä¬ÁÍËÄÖÁÜjß

84 ITSRR Annual Report 2004 - 05/Reliability Report In summary, the results from Information and Priority System and and Regulatory Tribunal proposed this limited survey support the bus lanes. Put simply, to the extent a service quality index. The aim impression that on-time running at that buses are running on-time would be to combine elements of major pick up and drop off points, less than 95% of the time, there is service quality within a given con- i.e. at bus stops, is substantially scope for improvement in perform- tract area, and to combine results below that measured at terminus ance via bus priority measures or of the contract areas into a met- points such as in data previously even timetable changes. ropolitan-wide index. The index, reported for STA. The results are or even an operator’s component, below on-time running presented The Ministry of Transport’s Opera- would not necessarily be used in by STA and in self-reporting. The tional Performance Regime, and the contract management, but rather measured performance at terminus proposed technological improve- aim at providing an overall measure points may be affected by some en ments to monitoring, may result of performance. Necessarily, this route and layover leeway built into in a “change of series” for on-time would take some time to develop. timetables. However, neither of running and reliability fi gures, e.g. these leeway factors will necessarily on-time running measured at a be of benefi t to passengers on that number of en route locations. The bus trip. effect of this at any given level of delays, may be to reduce the Other results from the survey current reported on-time running appear to indicate some substantial fi gure, as distinct from that experi- variation in on-time running across enced by passengers. However, this bus routes, across bus stops, and will allow the Ministry of Transport at different times of the day. This to better plan for bus services and would be consistent with differ- improvements and thus facilitate ences in timetabling, e.g. section a better performing system, with running times, and differences customers observing improve- in traffi c congestion, i.e. traffi c ments, in the medium term. congestion affecting buses is worse in some locations than others, and ITSRR’s future work - service at different times. quality index It needs to be recognised that a Unlike the Ministry of Transport, single survey does not present a which needs to deal with individual defi nitive picture of bus service bus operators through a contrac- reliability, and that more work tual process, ITSRR’s interest in needs to be done. Moreover, while bus performance is at the more the results suggest that claims or aggregate level. Given this, its targets of 95% on-time running, interest will be with indicators most such as in the Customer Com- relevant to the system as a whole. mitment, may be unrealistic for These will include indicators of pas- all en route stops, they highlight senger numbers and of customer the potential benefi ts of the perceptions. Government’s programs aimed at providing priority for buses in road To ascertain developments in overall traffi c. These are programs such bus performance, ITSRR’s submis- as the electronic Public Transport sion to the Independent Pricing

ITSRR Annual Report 2004 - 05/Reliability Report 85 4. Ferries

A signifi cant governance change in 2003-04. Operational perform- took effect in the publicly owned ance remained strong at 98.9 per Sydney ferry operator during cent of ferries running on-time 2004-05. This was the creation and 99.1 per cent of services of Sydney Ferries Corporation as a operating i.e. less than 1 per cent State-owned Corporation separate of service cancellations. This is from the State Transit Authority. similar to performance in previous years, although slightly below the The legislation effecting this targets of 99.5 per cent for on-time change requires Sydney Ferries to running and service operation that enter a Performance Agreement were set. with the Minister setting out performance benchmarks for the ferry services it provides.

A draft of the Performance Agree- ment was developed in 2004-05 but it has not yet been concluded. The agreement is intended to include outcomes such as meeting customer needs, being an inte- grated part of the public transport system, and cost effectiveness. Indicators would likely include on-time running, cancellations and customer complaints. Sydney Ferries submission to the Independ- ent Pricing and Regulatory Tribunal fare review inquiry provides some information on these.

Sydney Ferries carried some 13.5 million passengers in 2004-05, a slight increase from 13.4 million

ITSRR provides advice to the Minister for Transport on the reliability of ferries.

86 ITSRR Annual Report 2004 - 05/Reliability Report 5. Transport Coordination

In last year’s Reliability Report, able on a website and through a ITSRR indicated an interest in call centre. The elements are: extending performance monitor- ing to transport coordination. • information for planning of That is, services that apply across trips, e.g. public transport the various modes. There are a options and timetables, notice number of respects in which this of maintenance closures for can be relevant including provi- rail; sion of transport for major events • real time information about such as the Royal Easter Show, service disruptions including and events in the Olympic Park rail, route alterations for buses; precinct, interchange performance and and construction, and the 131500 • receipt of complaints and Transport Infoline. feedback.

The 131500 Transport Infoline The contract procuring these service is procured by the Gov- services includes performance ernment through the Transport indicators for response times. Development Corporation which In the lead-up to the introduction is a subsidiary of the Ministry of of the new CityRail timetable, the Transport. Funding is in the order Minister for Transport announced of $7.3m per annum. The service an upgrade and revision to the is supported by and tied to the 131500 website, which includes an main transport service providers; advanced trip planner and faster RailCorp, State Transit Authority, search times28. Sydney Ferries Corporation etc.

Three elements of service are provided through the 131500 Transport Infoline. They are avail-

28 See: New 131500 Transport Website Launced Ahead of Rail Timetable Saturday 27th August, News Release Deputy Premier, Ministry for Transport and Minister for State Development.

ITSRR Annual Report 2004 - 05/Reliability Report 87 6. Summary and Conclusion

This second Reliability Report pro- In the latter stages of the year, The Country Regional Network vides an overview of the reliability RailCorp focused on preparation for does remain within ITSRR’s reli- performance of the major NSW rail, a new timetable to be introduced ability reporting scope. As fore- bus and ferry systems in 2004-05. in September 2005. Together with shadowed last year, the Line CSO As for 2003-04, service quality some change in reporting stand- was replaced, and a new Funding issues have been the focus, espe- ards for on-time running, RailCorp Agreement was entered. Report- cially in comparison with standards expects this to result in improved ing under this Agreement was at set by the Government. Informa- on-time running performance. a very aggregated level dealing tion has largely been sourced from The new timetable is constructed with transport outcomes. This is the Government’s procurement around a reduction in the total consistent with expectations of the agency, the Ministry of Transport, number of services and slower Ministry but is substantially less for and from RailCorp. running of trains. the relevant network parts than under the previous Line CSO. It is ITSRR intends to closely monitor Rail not adequate for ITSRR’s purposes performance under the new for advising on network condi- timetable. It will continue to CityRail’s performance in 2004-05 tion. To deal with this issue, ITSRR concentrate on incidents including continued to be disappointing. separately sought supplementary infrastructure and fl eet incidents The Reliability Improvement Plan information from RIC. However, that cause delays. It also intends to referred to in last year’s Annual at the time of writing this was not focus on issues such as crowding Reliability Report, the new Rail available, and consequently ITSRR measurement. Performance Agreement, and cannot comment on the condition the reduction in some services, CountryLink performance remained of, or developments in, the Country did not result in a substantially relatively stable. However, the Regional Network. ITSRR does improved performance. On-time decline in patronage, evident since note, however, that the information running, skipped stops and service 2001, continued. provided by RIC to the Ministry cancellations all performed below under the Funding Agreement the Government’s targets. Not- Major changes to infrastructure does not support a view that the withstanding a reported decline in management in the country area network is in good and improv- overall patronage, measured peak took place in September 2004. ing condition, or that detailed period crowding increased. This involved Australian Rail Track condition monitoring should now Corporation (ARTC) leasing inter- become a lower priority. Infrastructure performance under state lines in the Country Network RailCorp’s management, and the and the Hunter Valley system. Bus and ferry Metropolitan Rail Area Network, Rail Infrastructure Corporation appeared to improve. This may continued to hold the remainder, The Government commenced its refl ect the lagged result of an the Country Regional Network. Bus Reform program in 2004-05 increase in maintenance effort since In effect this moved much of the for the metropolitan area. Ne- 2000. However, fl eet performance Country Network, and the Hunter gotiations between the Ministry was an issue in 2004-05, with fl eet Valley, outside of the scope of of Transport and bus operators incidents contributing signifi cantly ITSRR reliability reporting. ARTC continued in the year. During this to poor service performance in the is required to provide an annual time, it became evident that it year. condition report to RIC on the would take some time, well beyond infrastructure it has leased. This the 2004-05 year, for substantial was not available at the time of data from the private bus sector to writing. become available to the Ministry

88 ITSRR Annual Report 2004 - 05/Reliability Report of Transport and to ITSRR. In last ITSRR’s focus is on aggregates. The year’s Annual Reliability Report, Ministry of Transport, not ITSRR, ITSRR raised some issues about is responsible for bus contract data quality. administration and dealing with particular operators. A key issue is The Ministry of Transport’s self aggregation of bus performance reporting scheme for bus operators results, especially service quality was extended in 2004-05 and results, over the 15 metropolitan monthly reports were received from contract areas. Discussions over 90 percent of operators. Data between the Ministry of Transport on bus operational performance and ITSRR indicate that the ag- also was available from the State gregation issue also is likely to be Transit Authority. a matter of interest to the Ministry of Transport due to the policy The Ministry of Transport and direction of uniform distance-based ITSRR undertook a limited survey metropolitan bus fares, and the of bus operating performance in Ministry of Transport’s view that at late 2004. While a single survey least some parts of fares should be will not present a defi nitive picture linked with service quality improve- of bus service reliability, and more ments. ITSRR intends to address work needs to be done on this this issue via a service quality index issue, the results indicated that with work commencing on the on-time running benchmarks, such index in 2005-06. as appearing in the Customer Com- mitment on the 131500 website for 95 per cent, were not being met at all bus stops in Sydney. The results were below those from self reporting and from STA. There may be a number of reasons for this. For example, reported on-time running of 95 percent for the STA’s Sydney Buses, may refl ect defi nitional matters; e.g. STA on-time running is measured at terminus points and not at individual bus stops.

It is in this context that some of the measures and initiatives associated with Bus Reform, such as bus priority lanes and cashless fares can be expected to have impacts on services. These are likely to be more noticeable than if bus punctuality at all bus stops was already around 95 per cent. During the year Government began implementing its bus reforms for the Sydney metropoli- tan area.

ITSRR Annual Report 2004 - 05/Reliability Report 89 Financial Report

90 ITSRR Annual Report 2004 - 05/Financial Statements ITSRR Annual Report 2004 - 05/Financial Statements 91 Independent Transport Safety and Reliability Regulator Statement by Chief Executive Offi cer

For the year ended 30 June 2005

Pursuant to section 45F of the Public Finance and Audit Act 1983, I state that:

(a) The accompanying fi nancial statements have been prepared in accordance with

• Applicable Australian Accounting Standards; • Other authoritative pronouncements of the Australian Accounting Standards Board; • Urgent Issues Group Consensus Views; • The requirements of the Public Finance and Audit Act and Regulations; and • The Financial Reporting Directions published in the Financial Reporting Code for Budget Dependent General Government Sector Agencies or issued by the Treasurer under section 9(2)(n) of the Act.

(b) The statements exhibit a true and fair view of the fi nancial position and transactions of the Regulator; and

(c) There are no circumstances, which would render any particulars included in the fi nancial statements to be misleading or inaccurate.

Chief Executive Offi cer

20 October 2005

92 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Statement of Financial Performance For the year ended 30 June 2005 Budget 2005 6 months to Actual 2005 30.6.2004 Notes Actual $’000 $’000 $’000

Expenses Operating expenses Employee-related 2(a) 11,170 10,639 4,452 Other operating expenses 2(b) 5,209 5,379 5,526 Depreciation 2(c) 249 100 111 Total expenses 16,628 16,118 10,089

Less Retained revenue Sale of services 3(a) 46 - 4 Investment income 3(b) 80 - 38 Total retained revenue 126 - 42

Net Cost Of Services 17 16,502 16,118 10,047

Government Contributions Recurrent appropriation 4 14,626 14,661 9,046 Capital appropriation 4 545 1,115 1,000 Acceptance by the Crown Entity of Employee benefi ts and other Liabilities 5 1,831 1,457 1,104 Total Government Contributions 17,002 17,233 11,150

SURPLUS FOR THE PERIOD FROM ORDINARY ACTIVITES 500 1,115 1,103 Total revenues, expenses and valuations adjustments recognised directly in equity - - - TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM TRANSACTIONS WITH OWNERS AS OWNERS 13 500 1,115 1,103

The accompanying notes form part of these statements.

ITSRR Annual Report 2004 - 05/Financial Statements 93 Independent Transport Safety and Reliability Regulator Statement of Financial Position As at 30 June 2005 Actual 2005 Actual 2004 Notes Budget $’000 $’000 $’000 2005

ASSETS Current assets Cash 7 2,385 2,247 2,147 Receivables 8 357 260 560 Prepayments 9 108 113 113 Total Current Assets 2,850 2,620 2,820

Non-Current Assets Property, plant and equipment Leasehold improvements 10 720 805 905 Plant and equipment 10 576 432 132 Total property, plant and equipment 1,296 1,237 1,037

Total Non-Current Assets 1,296 1,237 1,037

Total Assets 4,146 3,857 3,857

LIABILITIES Current Labilities Payables 11 1,110 1,876 1,876 Provisions 12 917 425 425 Liability to Consolidated Fund 4 35 - - Total Current Liabilities 2,062 2,301 2,301

Non-Current Liabilities Provisions 12 401 373 373 Total Non-Current Liabilities 401 373 373

Total Liabilities 2,463 2,674 2,674

Net Assets 1,683 1,183 1,183 EQUITY Accumulated funds 13 1,683 1,183 1,183 Total Equity 1,683 1,183 1,183

The accompanying notes form part of these statements.

94 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Statement of Cash Flows For the year ended 30 June 2005 Budget 2005 Actual 2005 months to 30.6.2004 Actual 6 Notes $’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVIES Payments Employee related (9,353) (9,577) (2,973) Other operating expenses (6,493) (5,979) (4,498) Total payments (15,846) (15,556) (7,471)

Receipts Miscellaneous revenue 66 - 4 Interest 76 - - Recreation leave - - 308 Goods and Services Tax received 803 804 208 Total Receipts 945 804 520

Cash Flows from Government Recurrent appropriation 14,661 14,455 9,046 Capital appropriation 545 1,115 1,000 Cash reimbursements from the Crown Entity 441 395 120 Net Cash Flows from Government 15,647 15,965 10,166

NET CASH INFLOWS FROM OPERATING ACTIVITIES 17 746 1,213 3,215

CASH FLOWS FROM INVESTING ACTIVITES Purchase of property, plant and equipment (508) (1,115) (1,068) NET CASH FLOWS FROM INVESTING ACTIVITES (508) (1,115) (1,068)

NET INCREASE IN CASH 238 98 2,147

Opening cash and cash equivalents 2,147 2,147 - CLOSING CASH AND CASH EQUIVALENTS 7 2,385 2,245 2,147

The accompanying notes form part of these statements.

ITSRR Annual Report 2004 - 05/Financial Statements 95 Independent Transport Safety and Reliability Regulator Statement of Compliance with Financial Directives For the year ended 30 June 2005

2004-05 For the period from 1 January 2004 to 30 June 2004 $’000 Expenditure-Net claim on Expenditure-Net claim on Expenditure - Net claim Expenditure -Net claim Recurrent Expenditure Capital Appropriation Capital Appropriation on Cons Fund on Cons Fund Expenditure Cons Fund Cons Fund Recurrent $’000 $’000 $’000 $’000 $’000 $’000 $’000

Original budget Appropriation Appropriations Act 15,673 14,523 ------Additional appropriations ------S 21 PF& AA - special appropriations ------S 24 PF& AA - transfer of func- tions between agencies ------15,673 14,523 ------

Other appropriations/expenditure Treasurer’s advance - - - 545 7,046 7,046 1,000 1,000 Enforced Transfer- recurrent to capital (1,115) - 1,115 - - - - - Transfer to/from another agency (S27 of the Appropriation Act) 103 103 - - 2,000 2,000 - - (1,012) 103 1,115 545 9,046 9,046 1,000 1,000

Total Appropriation/Expenditure 14,661 14,626 1,115 545 9,046 9,046 1,000 1,000

Drawdown from Treasury 14,661 545 9,046 1,000

Liability to Consolidated Fund 35 - - -

The Summary of Compliance is based on the assumption that Consolidted Fund moneys are spent fi rst (except where otherwise identifi ed or prescribed). Liability to Consolidated Fund represents the difference between the “Amount Drawn Down against Appropriation” and the “Total Expenditure”/Net Claim on Consolidated Fund.

96 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Program Statement Expenses and Revenue For the year ended 30 June 2005

Program Non Program 65.1.1 Program 65.1.2 65.1.3 attributable Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004

EXPENSES Operating expenses Employee related (8,741) (3,566) (1,266) (604) (1,163) (282) - - (11,170) (4,452) Operating expenses (4,857) (4,382) (186) (559) (166) (585) - - (5,209) (5,526) Depreciation (249) (109) - (1) - (1) - - (249) (111) Total Expenses (13,847) (8,057) (1,452) (1,164) (1,329) (868) - - (16,628) (10,089)

RETAINED REVENUE Sale of services 46 4 ------46 4 Investment income 80 30 - 4 - 4 - - 80 38 Total retained revenue 126 34 - 4 - 4 - - 126 42

(13,721) (8,023) (1,452) (1,160) (1,329) (864) - - (16,502) (10,047) Net Cost of Services

Government Contributions ------17,002 11,150 17,002 11,150

NET REVENUE (13,721) (8,023) (1,452) (1,160) (1,329) (864) 17,002 11,150 500 1,103 ADMINISTERED REVENUE Rail operator’s accreditation fees 3,591 - 3,591 - Fines -- - - 3,591 - 3,591 -

The names and purpose of each program are summarised in Note 6. Appropriations are made on an agency basis and not to individual program. Consequently Government Contributions must be included in the not attributable column.

The 2004 comparative amounts relate to the period from 1 January 2004 to 30 June 2004.

ITSRR Annual Report 2004 - 05/Financial Statements 97 Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005

1. Summary of Signifi cant Accounting Policies (a) Reporting Entity (c) Administered Activities

The Independent Transport Safety and Reliability Regu- The agency administers, but does not control, certain lator was established on 1 January 2004 as a statutory activities on behalf of the Crown Entity. It is account- corporation under the Transport Administration Act able for the transactions relating to those adminis- 1988 as amended. The principal objective of this tered activities but does not have the discretion, for agency is to facilitate the safe operation of transport example, to deploy the resources for the achievement services in New South Wales. The comparative period of the agency’s own objectives. covers the period from 1 January 2004, the date of establishment of the corporation, to 30 June 2004. Transactions and balances relating to the administered activities are not recognised as the agency’s revenues, The reporting entity is consolidated as part of the expenses, assets and liabilities, but are disclosed in NSW Total State Sector Accounts. Notes 19 to 21 as Administered Assets and Liabilities, Administered Revenue – Crown Revenue, and Admin- (b) Basis of Accounting istered Revenue – Schedule of Uncollected Amounts. The accrual basis of accounting and all applicable The agency’s fi nancial statements are a general accounting standards have been adopted for the purpose fi nancial report, which has been prepared on reporting of the administered activities. an accruals basis and in accordance with:

• applicable Australian Accounting Standards; (d) Revenue Recognition • other authoritative pronouncements of the Australian Accounting Standards Board (AASB); Revenue is recognised when the agency has control of the good or right to receive, it is probable that the • Urgent Issues Group (UIG) Consensus Views; economic benefi ts will fl ow to the agency and the • the requirements of the Public Finance and Audit amount of revenue can be measured reliably. Addi- Act and Regulations; and tional comments regarding the accounting policies for • the Financial Reporting Directions published in the the recognition of revenue are discussed below. Financial Reporting Code for Budget Dependent General Government Sector Agencies or issued by (i) Parliamentary Appropriations: the Treasurer under Section 9(2)(n) of the Act. Where there are inconsistencies between the above Parliamentary appropriations are recognised as requirements, the legislative provisions have prevailed. revenues when the agency receives the funds from the In the absence of a specifi c Accounting Standard, Consolidated Fund. other authoritative pronouncements of the AASB An exception to the above is when appropriations or UIG Consensus View, the hierarchy of other are unspent at year-end. In this case the ability to pronouncements as outlined in AAS 6 “Accounting spend the money lapses and generally the unspent Policies” is considered. amount must be repaid to the Consolidated Fund in The fi nancial statements are prepared in accordance the following fi nancial year. As a result, unspent ap- with the historical cost convention. All amounts are propriations are accounted for as liabilities rather than rounded to the nearest thousand dollars and are revenue. The agency had a liability to the Consolidated expressed in Australian currency. Fund at balance date (Note 4).

98 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005

(ii) Sale of Services: years of service.

Revenue from the sale of services comprises revenue from The superannuation expense for the fi nancial period is de- the provision of services i.e. user charges. User charges are termined by using the formulae specifi ed in the Treasurer’s recognised as revenue when the agency obtains control of Circular. The expense for certain superannuation schemes the assets that result from them. (i.e. Basic Benefi t and First State Super) is calculated as a percentage of the employee’s salary. For other superan- (iii) Investment Income: nuation schemes (ie. State Superannuation Scheme and State Authorities Superannuation Scheme), the expense is Interest revenue is recognised as it accrues. calculated as a multiple of the employees’ superannuation contributions. (e) Employee Benefi ts and Other Provisions (iii) Other Provisions

Other provisions exist when the agency has a present (i) Salaries, Annual Leave, Sick Leave and oncost: legal, equitable or constructive obligation to make a future sacrifi ce of economic benefi ts to other entities as a result Liabilities for salaries (including non-monetary benefi ts), of past transactions or other past events. These provisions annual leave and vested sick leave are recognised and are recognised when it is probable that a future sacrifi ce of measured in respect of employees’ services up to the economic benefi ts will be required and the amount can be reporting date at nominal amounts based on the amounts measured reliably. expected to be paid when the liabilities are settled. Any provisions for restructuring are recognised either Unused non-vested sick leave does not give rise to a li- when a detailed formal plan has been developed or will ability, as it is not considered probable that sick leave taken be developed within prescribed time limits and where the in the future will be greater than the benefi ts accrued in agency has raised a valid expectation in those affected by the future. the restructuring that it will carry out the restructuring. The outstanding amounts of payroll tax, workers’ com- pensation insurance premiums and fringe benefi ts tax, (f) Insurance which are consequential to employment, are recognised as liabilities and expenses where the employee benefi ts to The agency’s insurance activities are conducted through which they relate have been recognised. the NSW Treasury Managed Fund scheme of self-insurance for Government agencies. The expense (premium) is deter- (ii) Long Service Leave and Superannuation: mined by the Fund Manager based on past experience.

The agency’s liabilities for long service and superannuation are assumed by the Crown Entity. The agency accounts for (g) Accounting for Goods and Services Tax (GST) the liability as having been extinguished resulting in the amount assumed being shown as part of the non-mon- Revenues, expenses and assets are recognised net etary revenue item described as “Acceptance by the Crown of the amount of GST, except where receivables and Entity of Employee benefi ts and other Liabilities”. payables are stated with the amount of GST included. Long service leave is measured using the present value The amount of GST incurred by the agency as a method. This method uses expected remuneration rates purchaser that is not recoverable from the Australian adjusted by Treasury-determined factors to calculate long Taxation Offi ce is recognised as part of the cost of ac- service leave benefi ts of employees with more than fi ve quisition of an asset or as part of an item of expense.

ITSRR Annual Report 2004 - 05/Financial Statements 99 Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005

(h) Acquisitions of Assets of Financial Performance in the periods in which they are incurred. The agency does not have any fi nance leases. The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the (k) Receivables agency. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisi- Receivables are recognised and carried at cost, based on tion. the original invoice amount less a provision for any uncol- Assets acquired at no cost, or for nominal consideration lectible debts. An estimate for doubtful debts is made are initially recognised as assets and revenues at their fair when collection of the full amount is no longer probable. value at the date of acquisition. Bad debts are written off as incurred.

Fair value means the amount for which an asset could be (l) Prepayments exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm’s length transac- Prepayments are recognised on a cost basis. tion.

Leasehold improvements comprise offi ce improvements. (m) Equity Transfers

Plant and equipment comprise offi ce furniture, equip- The transfer of net assets between agencies as a result of ment and computer systems and equipment. The agency an administrative restructure, transfers of programs/func- acquired most of its computers under operating leases. tions and parts thereof between NSW public sector As these leases expire, the agency will buy computers in agencies are designated as a contribution by owners by accordance with Treasury Circular No. 04/06 (Note 14). NSWTC 01/11 and are recognised as an adjustment to “Accumulated Funds”. This treatment is consistent with Generally assets costing $500 and above individually are Urgent Issued Group Abstract UIG 38 “Contributions by capitalised. Owners Made to Wholly Owned Public Sector Entities”.

(i) Depreciation Transfers arising from an administrative restructure between government departments are recognised at Depreciation is provided for on a straight-line basis for the amount at which the asset was recognised by the all depreciable assets so as to write off the depreciable transferor government department immediately prior to amount of each asset as it is consumed over its useful life the restructure. In most instances this will approximate fair to the agency. The principal rate used for offi ce furniture, value. All other equity transfers are recognised at fair value. equipment and computer equipment and systems was 20 per cent. The leasehold period is 3 years and it is expected (n) Payables that the period be extended for a further period of 2 years and amortised at 20 per cent. These amounts represent liabilities for goods and services provided to the agency and other amounts, including The agency owns a small number of physical non-current interest. Interest is accrued over the period it becomes due. assets that have been fully depreciated. These consist mainly of offi ce equipment and computers whose value is not material to require recognition in these accounts. (o) Budgeted Amounts

The budgeted amounts are drawn from the State budgets, (j) Leased Non-Current Assets adjusted for the effects of additional appropriations, S21A, S24 and/or S26 of the Public Finance and Audit Act 1983. Operating lease payments are charged to the Statement

100 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 30 June 2005 30 June 2004 6 months to Year ended $’000 $’000

2. Expenses

(a) Employee related expenses comprise the following specifi c items: Salaries (including recreation leave) 8,618 3,022 Superannuation 668 225 Long service leave 1,123 865 Workers’ compensation insurance 35 38 Payroll tax and fringe benefi t tax 652 302 Redundancies 74 - 11,170 4,452

(b)Other operating expenses Accommodation Property rentals 609 455 Other property costs 48 52 External services Contractors 2,835 4,007 Legal services 401 10 Audit fees – external 12 6 Information technology Computer leasing 81 28 Computer licences 182 58 Communication lines 10 6 Other computer costs 26 4

ITSRR Annual Report 2004 - 05/Financial Statements 101 Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 6 Month to Year ended 30 June 30 June $’000 $’000 2004 2005

(b) Other operating expenses (Cont) Motor vehicle running expenses Operating lease rentals 39 21 Other motor vehicle expenses 125 71 Advertising and promotion 16 12 Staff recruitment and training costs 238 219 Administration Printing and stationery 121 136 Telephones 43 172 Postage and courier 14 3 Travel 240 74 Insurance 4 27 Others 165 165 5,209 5,526 (c) Depreciation Leasehold improvements 203 100 Plant and equipment 46 11 249 111

3. Revenues

(a) Sale of Services Rendering of services 46 4 46 4

(b) Investment income Interest 80 38 80 38

102 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 Year ended 6 Month 30 June 30 June $’000 $’000 2005 2004

4. Appropriations to

Recurrent appropriations Total recurrent drawdowns from Treasury (per Summary of Compliance) 14,661 9,046 Less: Liability to Consolidated Fund (per Summary of Compliance) (35) - Recurrent appropriations (per Statement of Financial Performance) 14,626 9,046 Capital appropriations Total capital drawdowns from Treasury (per Summary of Compliance) 545 1,000 Less: Liability to Consolidated Fund (per Summary of Compliance) - - Capital appropriations (per Statement of Financial Performance) 545 1,000

5. Acceptance by the Crown Entity of Employee Benefi ts and Other Liabilities

The following liabilities and/or expenses have been assumed by the Crown Entity Superannuation 668 225 Long service leave 1,123 865 Payroll tax on superannuation 40 14 (Note 18) 1,831 1,104

ITSRR Annual Report 2004 - 05/Financial Statements 103 Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005

6. Program Information

The agency has three programs namely:

Program 65.1.1– Effective Regulation Program 65.1.3 – Service Reliability

Program objective: To provide strategic co-ordina- Program objective: To advise the Government and tion of safety regulation across transport modes. To the community on the extent to which transport administer the Rail Safety Act 2002, including accredi- operators are meeting their service obligations. To tation of rail operators and undertaking compliance identify lead indicators of potential safety risks. audits and investigations. Program description: Advise the Minister, Govern- Program description: Provisions of safety policy and ment and the community on the extent to which safety management system standards across transport publicly funded transport services are meeting the modes and the guidelines and regulations that support standards set by Government under their contracts these. Accredit rail operators and monitor compliance with service providers. Advise the Minister of perform- with the Rail Safety Act 2002, with a focus on promot- ance against national and international standards. ing improvements in safety management systems and Provide administrative support to the Transport safety culture. Provisions of research and data analysis Advisory group to facilitate community participation in to identify potential safety issues. reliability assessment.

Program 65.1.2 – Investigation

Program objective: To conduct independent and rigorous investigations into accidents and incidents involving transport services.

Program description: Conduct investigations into rail, bus and ferry accidents and incidents and initiate investigations of systematic safety failures. Manage the Confi dential Safety Information and Reporting Scheme. Notify industry of safety issues. Monitor national and overseas transport safety investigations.

104 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 $’000 30.06.2005 $’000 30.06.2004

7. Cash

Cash at bank and on hand 2,385 2,147 2,385 2,147

For the purposes of the Statement of Cash Flows, cash includes cash on hand and cash at bank. Cash assets recognised in the Statement of Financial Position are reconciled to cash at the end of the fi nancial year as shown in the Statement of Cash Flows. 8. Receivables

Employee entitlements recoverable 134 149 Goods and Services Tax – recoverable 68 254 Others 54 - Goods and Services Tax on accruals 101 157 357 560 Less: Provision for doubtful debts - - 357 560

9. Prepayments

Prepaid expenses 108 113 108 113

ITSRR Annual Report 2004 - 05/Financial Statements 105 Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 30.06.2005 30.06.2004 $’000 $’000 10. Non-Current Assets - Property, Plant and Equipment

Leasehold Improvements At fair value 1,024 1,005 Less: Accumulated depreciation 304 100 720 905

Plant and equipment At fair value 673 183 Less: Accumulated depreciation 97 51 576 132 Total property, plant and equipment At net book value 1,296 1,037

Reconciliation of the carrying amounts by asset class at the beginning and end of the period are set out below: $’000 Leasehold improvements $’000 Plant & equipment $’000 Total

Carrying amount at 1 July 2004 905 132 1,037 Additions 19 489 508 Depreciation expense 204 45 249

Carrying amount at 30 June 2005 720 576 1,296

106 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 30.06.2005 30.06.2004 $’000 $’000

11. Payables Creditors 5 20 Accruals Salaries and on-costs (note 12) 23 116 Others 1,082 1,740 1,110 1,876

12. Provisions Current liabilities Recreation leave 794 302 Others 123 123 917 425

Non-current liabilities Recreation leave 274 280 Others 127 93 401 373

Aggregate employee benefi ts and related on-costs Provisions–current 917 425 Provisions– non-current 401 373 Accrued salaries & on-costs (Note 11) 23 116 1,341 914

ITSRR Annual Report 2004 - 05/Financial Statements 107 Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 30.06.2005 30.06.2004 $’000 $’000

13. Changes in Equity

Balances at the beginning of the fi nancial period 1,183 80 Surplus for period 500 1,103 Balance at the end of the fi nancial period 1,683 1,183

14. Commitments for Expenditure (a) Capital commitments Aggregate capital expenditure contracted at balance date and not provided for: - - Not later than one year - - Later than one year but not later than fi ve years - - Later than fi ve years - - Total (including GST) - -

(b) Other expenditure commitments Aggregate other expenditure contracted for at balance date and not provided for: 621 441 Not later than one year 621 441 Later than one year but not later than fi ve years - - Later than fi ve years - - Total (including GST) 621 441

(c) Operating lease commitments Future non-cancellable operating lease rentals not provided for and payable: 1,717 2,556 Not later than one year 916 873 Later than one year but not later than fi ve years 801 1,683 Later than fi ve years - - Total (including GST) 1,717 2,556

The agency leases its motor vehicles, computers and offi ce accommodation (Note 1(h)).

108 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005

15. Contingent Liabilities and Contingent Assets

Contingent Liabilities

The agency had no contingent liabilities as at balance date (2004-nil).

Contingent Assets

The agency had no contingent assets as at balance date (2004-nil).

16. Budget Review

Net Cost of Services

The net cost of services for the year ended 30 June 2005 was $16.5m compared to the budget of $16.1m, an overspending of $384k.

• Employee-related expenses at $11.2m were above the budget of $10.6m. due to higher employee oncosts. • Other operating expenses at $5.2m were slightly below the budget of $5.4m.

Assets and Liabilities

The main changes in the statement are set out below:

• Cash of $2.4m was higher than budget and will be used to pay accrued expenses and creditors. • The receivables were higher than budget. • Accounts payable including provisions were consistent with the budget and the comparative period.

Cash Flows

Net cash fl ows from operations amounted to $746k of which $508k was spent on property, plant and equip- ment with the balance to be used to pay creditors and accrued expenses.

ITSRR Annual Report 2004 - 05/Financial Statements 109 Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 $’000 30.06.2005 Year ended $’000 30.06.2004 to 6 months 17. Reconciliation of Cash Flows from Operating Activities to Net Cost of Services

Net Cash fl ow from Operating Activities 746 3,215 Cash fl ows from Government/Appropriations (15,647) (10,164) Acceptance by the Crown Entity of Employee Entitlements (1,390) (986) Depreciation (249) (111) (Decrease)/Increase in prepayments (5) 241 (Decrease)/Increase in receivables (203) 403 (Decrease) Increase in creditors 766 (1,847) Increase in provisions (520) (798) Net Cost of Services (16,502) (10,047)

18. Non-cash Financing and Investing Activities

During the period, the agency undertook the following non-cash fi nancing and investing activities:

Employees’ entitlements and liabilities 1,831 1,104 Assumed by the Crown Entity (Note 5) 1,831 1,104

110 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 $’000 30.06.2005 $’000 30.06.2004

19. Administered Assets and Liabilities

Administered Assets Receivables (1) 1,081 45 Total Administered Assets 1,081 45

Administered Liabilities Payables (1) 1,081 45 Total Administered Liabilities 1,081 45

(1) Receivables and payables relate to Crown revenue (rail accreditation fees) not yet collected.

20. Administered Revenue - Schedule of Uncollected Amounts

Uncollected administered revenue 1,081 45 1,081 45 <90 Days >90 Days $’000 $’000 $’000 Total

Receivables – rail accreditation fees – 2005 256 825 1,081 Receivables – rail accreditation fees – 2004 - 45 45

ITSRR Annual Report 2004 - 05/Financial Statements 111 Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005 $’000 30.06.2005 Year ended $’000 30.06.2004 6 months to

21. Administered Revenue Crown Revenue Rail accreditation fees collected and remitted to the Crown 3,591 - 3,591 -

22. Financial Instruments Cash Trade creditors and Accruals

Cash comprises cash on hand and bank balances The liabilities are recognised for amounts due to be within the Treasury Banking System. Interest is earned paid in the future for goods or services received, on daily bank balances at the monthly average NSW whether or not invoiced. Amounts owing to suppliers Treasury Corporation 11am unoffi cial cash rate (which are unsecured) are settled in accordance with adjusted for a management fee to Treasury. the policy set out in Treasurer’s Direction 219.01. If

Receivables trade terms are not specifi ed, payment is made no later than the end of the month following the month All trade debtors are recognised as amount receiv- in which an invoice or a statement is received. Treas- able at balance date. Collectability of trade debtors urer’s Direction 219.01 allows the Minister to award is reviewed on an ongoing basis. Debts, which are interest for late payment. known to be uncollectable are written off. A provision for doubtful debts is raised when some doubt as to (a) Interest Rate Risk collection exists. The credit risk is the carrying amount Interest rate risk is the risk that the value of the (net of any provision for doubtful debts). No interest is fi nancial instruments will fl uctuate due to changes earned on trade debtors. The carrying amount ap- in market interest rates. The exposure to interest rate proximates net fair value. Sales are made on 30-days risk and the effective interest rates of fi nancial assets terms. and liabilities both recognised and unrecognised at 30 June 2005 are as follows:

112 ITSRR Annual Report 2004 - 05/Financial Statements Independent Transport Safety and Reliability Regulator Notes to and forming part of the fi nancial statements For the year ended 30 June 2005

22. Financial Instruments (cont)...

Total carrying amount Weighted Floating Interest Non-Interest as per Statement of average effective rate Bearing Financial Position interest rate $’000 $’000 $,000 $’000 $’000 $’000 2005 2004 2005 2004 2005 2004 2005 2004 % %

Financial Assets Cash 2,385 2,147 - - 2, 385 2,147 4.07 3.42 Receivables - - 357 560 357 560 - - Total 2, 385 2,147 357 560 2,742 2,707

Financial Liabilities Payable - - 1,110 1,876 1,110 1,876 - - Total - - 1,110 1,876 1,110 1,876

(b) Credit Risk The implementation of the Australian Equivalents to International Financial Reporting Standards (AEIFRS) Credit risk is the risk of fi nancial loss arising from will not have a signifi cant impact on the equity and another party to a contract or fi nancial position failing surplus of the agency. to discharge a fi nancial obligation thereunder. The agency was not exposed to a credit risk from carry- ing amounts of fi nancial assets in the Statement of 24. Post Balance Sheet Events Financial Position. On 1 July 2005 the agency transferred its investigative functions to the newly formed Chief Investigator of 23. Impact of the Implementa- the Offi ce of Transport Safety Investigations. tion of Australian Equivalents to End of audited fi nancial statements. International Financial Reporting Standards

The agency will apply the Australian Equivalents to International Financial Reporting Standards (AEIFRS) from the reporting period beginning 1 July 2005.

As part of the service level agreement the Ministry of Transport has assisted the agency to manage the transition to the new standards.

ITSRR Annual Report 2004 - 05/Financial Statements 113 Appendices

Contents

Accredited Operators of Railways in NSW...... 115 Charter and Aims...... 116 ITSRR’s Principal Offi cers...... 116 About ITSRR’s Advisory Board...... 116 Signifi cant Committees...... 119 Grants to Non-Government Organisations...... 119 Legal Changes...... 119 Major Works in Progress...... 119 Electronic Service Delivery...... 119 Equal Employment Opportunity...... 120 Human Resources...... 119 Consultants...... 121 Action Plan for Women...... 121 Land Disposal...... 121 List of Major Assets...... 121 Economic or other Factors...... 121 Publications...... 121 Overseas Visits...... 122 Payment of Accounts...... 122 Risk Management and Insurance Activities...... 123 Disclosure of Controlled Entities...... 123 Ethnic Affairs Priorities Statement...... 123 Occupational Health and Safety...... 124 Waste Management...... 124 Code of Conduct...... 124 Annual Report External Costs...... 124 Performance and Number of Executive Offi cers...... 124 Freedom of Information...... 128 Privacy Management Plan...... 128 Principal Legislation Administered by ITSRR...... 128 Government Energy Management Policy...... 128 Credit Card Certifi cation...... 128 Response to Signifi cant Issues Raised by the Auditor-General...... 128 Exemptions to reporting obligations...... 128

114 ITSRR Annual Report 2004 - 05/Appendices Accredited Operators of Railways in NSW

The code after the name of each railway is used as part of the unique alphanumeric identifi er for Certifi cates of Competency to be issued by the accredited railways.

Guidelines for the Certifi cation of Competency can be viewed at the ITSRR Website.

3801 Limited 3801 Millennium Parklands Railway MPR Airport Link Pty Ltd AL New England Railway Inc NER Alstom Australia Ltd AAT NSW Rail Transport Museum RTM Australia Southern Railroad ASR OneSteel Manufacturing OSM Australian Rail Track Corporation ARTC Pacifi c National Pty Ltd PN Australian Railway Historical Society (ACT Div) ARHS Pacifi c Rail Engineering Pty Ltd PRE AW Edwards Pty Ltd AWE Parramatta Rail Link Co Pty Ltd PRL Barclay Mowlem Construction Limited BMCL Patrick Rail Operations Pty Ltd PRO Bishop Austrans Pty Ltd BAP Perisher Blue Pty Ltd PBP Blue Circle Southern Cement BCSC Powerhouse Museum PHM Blue Scope Steel (AIS) Pty Ltd BSS Queensland Rail QR Bradken Rail Mittagong BRM Rail Fleet Services Limited RFS Campbelltown Steam Museum CSM Rail Infrastructure Corporation RIC Chicago Freight Car Leasing Australia Pty Ltd CFCL RailCorp RC Connex Sydney Pty Ltd – Light Rail CONL Rail Industry Service Providers Holdings RISP Connex Sydney Pty Ltd – Monorail CONM Regional Heritage Transport Association, Junee RHTA Cooma-Monaro Railway Inc CMR Richmond Vale Railway Museum RVR CRT Rail Operations Pty Ltd CRT South Maitland Railways Pty Ltd SMR Dorrigo Steam Railway & Museum Limited DSRM South Spur Rail Services Pty Ltd SSRS EDI Rail Pty Ltd EDI Southern Shorthaul Railroad SSR Fluor Australia Pty Ltd FAP Speno Rail Maintenance Australia Pty Ltd SRMA Glenreagh Mountain Railway Inc GMR Sydney Tramway Museum STM Goulburn Crookwell Heritage Railway Inc GCHR Taylor Rail Track Pty Ltd TRT GrainCorp Operations Ltd GOL The Rail Motor Society Inc RMS Great Southern Railway Ltd GSR The Silverton Tramway Company Ltd STC Heggies Bulkhaul Ltd HBH Thiess Hochtief Joint Venture THJV Historic Electric Traction HET Timbertown Heritage Steam Railway Pty Ltd THSR Illawarra Light Railway Museum Society Ltd ILR Transfi eld Services Australia TSA Interail Australia INT United Goninan Ltd UG John Holland Pty Ltd JH V/Line Passenger Pty Ltd VLP Junee Railway Workshops Pty Ltd JRW Valley Heights Steam Tramway VHST Lachlan Valley Rail Freight LVRF Westinghouse Signals Australia WSA Lachlan Valley Railway Society Co-op Ltd LVR Works Infrastructure Pty Ltd WIP Heritage Park and State Mine Railway SMHP Zig Zag Railway Co-op Ltd ZZR Manildra Group MG Melaleuca Station MES

ITSRR Annual Report 2004 - 05/Appendices 115 ITSRR’s Charter and Aims About ITSRR’s Advisory • customer service; Board • accident investigation; The principal objective of ITSRR is • public administration. to facilitate the safe operation of Role and Function transport services in the State. The principal functions of the The Chairperson must have experi- ITSRR also has the following objec- Independent Transport Safety and ence in transport safety manage- tives: Reliability Advisory Board are set ment systems (including rail safety management systems). The Minister • to exhibit independence, rigour out in the Transport Administration is to consult with the Chairperson and excellence in carrying out Act 1988 and include: before appointing Board members. its regulatory and investigative • advising ITSRR and or making functions; recommendations to ITSRR on Mr Ron Christie is the current • to promote safety and reliability safety and reliability; Chairperson of the Board and was as fundamental objectives appointed for a period of fi ve years • advising ITSRR on reports in the delivery of transport from 16 December 2003. The prepared by ITSRR and any services. three appointed members were other matter ITSRR may refer to selected after carefully considering the Board; and ITSRR’s Principal Offi cers the skills, expertise, international • advising the Minister and or reputation and pre-eminence of a ITSRR’s principal offi cers during making recommendations range of nominees, and potential 2004-05, comprising its Execu- on the safe operation of confl icts of interest and the extent tive Management Team, were as transport services (including of any potential confl ict. These follows: safety regulation by transport members were appointed for a authorities) and the reliability period of three years from 16 Chief Executive Carolyn Walsh of publicly funded transport December 2003. BEc services. Meetings Chief Investigator Paul O’Sullivan Method and Terms of Appoint- ment of Board Members MBA, MA The Board meets monthly, unless additional or extraordinary meet- Executive Director, Corporate The Board consists of fi ve members: ings are considered necessary. Strategy Natalie Pelham MScSoc • a Chairperson appointed by During 2004-05, it held 12 meet- Director, Business Services Paul the Governor, on the Minister’s ings. There were no changes in Harris BCom recommendation; Board membership in 2004-05. • three members appointed by Executive Director, Service the Minister (the appointed Reliability Simon Foster GradDip- members); and Mangt and a Land and Engineering Survey Drafting Certifi cate • the Chief Executive, ITSRR.

Executive Director, Trans- The members are appointed by the port Safety Regulation Kent Minister and must have experience Donaldson BEc, BSc (Aviation), in one or more of the following: BSc(Engineering) • rail safety management systems; • safety science;

116 ITSRR Annual Report 2004 - 05/Appendices Members of the Advisory Board

Ron Christie AM (BE, FIEAust, Professor Jean Cross (BSc, PhD, Dr Robert Lee (BA(Hons), PhD, ASTC, FAIM) – Chairman FIEAust, MAIP) FRAeS, FCILT)

Ron Christie has had extensive ex- Jean Cross is Head of the UNSW’s Rob Lee has extensive experience perience as a Chief Executive with a School of Safety Sciences and is in air safety investigation and is long history of involvement in public involved in teaching and research regarded as one of the foremost transport. Mr Christie has held a in the area of risk management. authorities on human factors in number of senior positions which Professor Cross has a degree and safety management. Dr Lee was include Chief Executive of the Roads PhD in Physics gained in the UK. appointed by the Bureau of Air and Traffi c Authority (RTA), Chief She is a Fellow of the Institute of Safety Investigation (BASI) as their Executive of the Olympic Roads and Engineers Australia and a member fi rst human factors specialist. In Transport Authority (ORTA), and of the Risk Management Institute 1989 he was appointed Director of Coordinator General of Rail. of Australia. BASI. Under Dr Lee’s leadership, BASI fundamentally changed the Professor Cross is Chair of the While at ORTA, Mr Christie was manner in which aircraft accidents Australian Standards Committee, responsible for co-ordinating the and incidents were investigated which prepared the Australian/New input of all public transport provid- and analysed in Australia, par- Zealand Standard No. 4360 Risk ers in NSW, including the RTA, ticularly through the application Management and is a member the SRA, Government and private of advanced human factors and of the International Standards bus operators, ferry operators and systems safety concepts. volunteer car drivers to provide for Committee, which prepared an IEC the transport needs of the Olympic standard on Project Risk Manage- Dr Lee is now an international and Paralympic Games. As Coor- ment. She has participated in the consultant in human factors and dinator General of Rail, Mr Christie preparation of Australian Standards systems safety in aviation, rail and was responsible for the co-ordina- handbooks on environmental risk other high technology industries. tion of three rail entities, making management, and risk manage- His recent airline clients have in- recommendations to Government ment in outsourcing. cluded Cathay Pacifi c, Emirates and for changes to the organisational Qantas. He has also worked with structure of the rail industry in NSW, State Rail in introducing human including funding requirements. factors and systems safety concepts to rail operations and training. A strategic plan for the maintenance sectorisation and expansion of the rail system was provided to the Government by Mr Christie in 2001.

ITSRR Annual Report 2004 - 05/Appendices 117 Members of the Advisory Board cont...

Rob Schwarzer (BE(Civil), Carolyn Walsh (BEc) FIEAust, Churchill Fellow) Carolyn Walsh, Chief Executive Rob Schwarzer is GHD’s Business of ITSRR is also a member of the Development Manager responsible Board. for the company’s services to the Railway industry. A civil engineer, he has over 36-year’s experience in the Transport industry covering freight and passenger services.

Mr Schwarzer has worked with government-owned rail, bus and ferry services and headed the private sector Sydney Light Rail Company. He has extensive experi- ence in construction, operation and strategic planning for trans- port systems in both public and private ownership.

118 ITSRR Annual Report 2004 - 05/Appendices Signifi cant Committees Departures from Subordinate year for this purpose. Legislation Transport Regulators Electronic Service Delivery Executive Committee (TREC) There were no departures from the Subordinate Legislation Act. The Electronic Self Service Kiosk is TREC comprises the Chief Execu- now operational. It allows staff to tives of the three agencies respon- Major Works in Progress apply for leave online and receive sible for regulating the safety of electronic approval notices by public passenger transport, ITSRR, ITSRR is undertaking major infor- email. Staff can also view leave the Ministry of Transport and NSW mation systems development work balances and entitlements online as Maritime. It is chaired by the Chair- to improve the effectiveness of well as allow managers immediate man of the ITSRR Advisory Board. its safety data. A capital grant of access to staff leave balances. $390,000 was allocated during the Its role is to act as a mechanism to share information, with the ob- Human Resources jective of identifying issues that Number of staff by category require resolution across all three transport modes. This ensures Level Total staff 2004 Total staff 2004/05 Respondents Men Women Aboriginal People & Torres Strait Islanders Minority Groups People from Racial, Ethnic, EthnoReligious Child was not English People Whose Language First Spoken as a People with a Disability Adjustment People with a Disability Work related that each agency understands the commonalities and differences between their approaches to safety regulation.

Grants to Non-Government Organisations

There were no grants to non-gov- ernment organisations.

Legal Changes

Legal changes to Regulations:

• Rail Safety (General) < $31,352 0 0 0 0 0 0 0 0 Amendment (Miscellaneous) $31,352 - $41,177 0 0 0 0 0 0 0 0 Regulation made on 14 January 2005 $41,178 - $46,035 1 0 0 0 0 0 0 0 0 Legal changes to Acts: $46,036 - $58,253 7 1 2 5 0 1 1 0 0 • Transport Legislation $58,254 - $75,331 9 6 4 0 6 0 0 1 1 0 Amendment (Waterfall Rail $75,332 - $94,165 23 25 17 19 6 0 3 3 0 0 Inquiry Recommendations) Act Assented to on 27 > $94,165 24 36 19 26 10 0 2 2 3 1 June 2005, substantially (non SES) commenced on 1July 2005 > $94,165 (SES) 7 8 5 4 4 0 1 1 1 1 TOTAL 64 82 46 51 31 0 7 8 5 2

ITSRR Annual Report 2004 - 05/Appendices 119 Trends in the Representation of EEO Groups Benchmark or EEO Group Target 2004 2005

Women 50% 34% 38% Aboriginal people and Torres 2% - Strait Islanders People whose fi rst language 20% 15% 22% was not English People with a disability 12% 15% 11% People with a disability requir- 7% 5.9% 4.3% ing work-related adjustment

Trends in the Distribution of EEO Groups Benchmark or EEO Group Target 2004 2005

Women 100 91 91 Aboriginal and Torres Strait 100 - Islanders peoples People whose fi rst language 100 n/a n/a was not English People with a disability 100 n/a n/a People with a disability requir- 100 n/a n/a ing work-related adjustment

Notes:

1) Staff numbers are as at 30 June 2005 2) Excludes casual staff 3) A distribution index of 100 indicates that the centre of the distribution of the EEO group across salary levels is equivalent to that of other staff. Values less than 100 mean that the EEO group tends to be more concentrated at lower salary levels than is the case for other staff The more pronounced this tendency is, the lower the index will be. In some cases the index may be more than 100, indicating that the EEO group is less concentrated at lower salary levels. The Distribution Index is automatically calculated by the software provided by ODEOPE. 4) The distribution index is not calculated where EEO group or non-EEO group numbers are less than 20.

120 ITSRR Annual Report 2004 - 05/Appendices Consultants • Train Door Emergency Egress and Access and Emergency ITSRR did not engage any consult- Evacuation Procedures, ants during the year. November 2004 In addition, the Offi ce of Transport Action Plan for Women Safety Investigations fi nalised and published the following reports: ITSRR is not required to prepare an action plan for women. • Rail Safety Investigation Report, Unanderra Derailment, July 2004 Land Disposal • Rail Safety Investigation ITSRR does not have any land to Report, Yass Junction dispose of. Derailment, July 2004 • Rail Safety Investigation List of Major Assets Report, Baan Baa Level Crossing Fatality, February ITSRR has no major assets to 2005 report against. • Rail Safety Investigation Report, Port Botany Shunting Economic or other factors Fatality, June 2005 • Bus Safety Investigation There were no economic or other Report, Gosford Red Bus factors affecting ITSRR’s opera- Service, December 2004 tional objectives in 2004-05. • Bus Safety Investigation Report, Smithfi eld (Woodpark) Publications Collision, February 2005 • Ferry Safety Investigation During the year ITSRR published Report, Louise Sauvage the following documents: Collision, June 2005 • Survey of CityRail Customers, January 2005 • Annual Report 2003-2004, October 2004 • Implementation of the NSW’s Government Response to the fi nal report of the Special Commission of Inquiry into the Waterfall Accident, January – March 2005 • Transport Advisory Weekly (TAW) Electronic News Service – June 2005

ITSRR Annual Report 2004 - 05/Appendices 121 Overseas trips 2004-2005 Destination Attendees Purpose Cost $ Dates

5/04/05 to 8/04/05 Wellington NZ Carolyn Walsh Attended 2 Steering Commit- 3,713 tee meetings: (1) Standing Committee on Transport and (2)Transport Agency Chief Executives 5/04/05 to 8/04/05 Wellington NZ Philip Halton Attended 2 Steering Commit- 2,008 tee meetings: (1) Standing Committee on Transport and (2)Transport Agency Chief Executives 8/02/05 to 9/02/05 Christchurch NZ Kent Donaldson Attended Rail Safety Regulators 2,095 Panel meeting 8/02/05 to 9/02/05 Christchurch NZ Philip Halton Attended Rail Safety Regulators 2,175 Panel meeting

28/11/04 to London UK Wayne Richards Attended 2nd International 9,410 5/12/04 Confi dential Reporting Systems Forum TOTAL 19,401

Payment of Accounts

Aged analysis at the end of each quarter Between 60 Days and Current (Within due Between 30 and 60 Between 30 and 60 More than 90 days 90 days overdue days overdue days overdue overdue Quarter

$’000 $’000 $’000 $’000 $’000 date)

September 66 - - - - December 150 - - - - March 61 - - - - June 191 - - - -

122 ITSRR Annual Report 2004 - 05/Appendices Time for Payment of Accounts Accounts paid on time within each quarter Total Amount Total Accounts Paid on Time Paid Actual % Target % $000 $000

September 100 74 1,419 1,920 December 100 68 1,184 1,740 March 100 85 1,906 2,245 June 100 96 1,008 1,096 TOTAL $7,001

Risk Management and Insur- individual and cultural Future activities planned include: ance Activities differences amongst other staff, the rest of the public • ensuring interpreter services ITSRR has revisited its risk manage- sector and the community in can be accessed if needed ment framework to ensure appro- general. In doing so to value when ITSRR is undertaking priateness for the organisational diversity of thought, experience compliance inspections and structure. ITSRR has maintained and skills; investigations that require accounts with the Treasury Man- collaboration or collection • including in the survey of agement Fund for all insurance. of evidence through public rail transport customers communication with clients or strategies to ensure ethnic the general public; Disclosure of Controlled groups were represented and Entities survey information could be • providing information on our collected in the preferred website on assistance available ITSRR does not have any controlled language of the survey to meet the needs of culturally entities to report against. participants; and linguistically diverse backgrounds; • including EAPS awareness as Ethnic Affairs Priorities an essential requirement in all • continuing to ensure that Statement (EAPS) position descriptions; and surveys of the public focus on ethnic group representation • including in the ITSRR Work ITSRR developed its Ethnic Affairs and collection of survey Hours Policy the need for Priorities Statement highlighting information in the preferred Managers to accommodate specifi c actions and behavioural language of the participant. expectations. fl exible work arrangements that support the freedom of Timeframes for completion vary During the year ITSRR EAPS individuals to express their but budget and staff has been achievements included: language, religious and cultural allocated to complete these initia- beliefs. tives. • formalisation in policy of the requirement for all staff to recognise and respect

ITSRR Annual Report 2004 - 05/Appendices 123 Occupational Health and Safety Performance & Number of Executive Offi cers

In conformormity with the OHS Number of SES Offi cers

Act 2002, ITSRR has formed an SES LEVEL 2004 Offi No. of SES 2005 Offi No. of SES 2005 No. of Offi 2005 staff in SES No. of Female

OHS Consultative Committee ces (total) ces (total) consisting of three elected staff representatives and three manage- cers ment nominees. The Committee’s role is to facilitate a safe work environment for ITSRR staff. It 1---- receives advice from staff and other 21111 sources on potential hazards in the 32111 workplace and works with staff and 42211 management to develop controls to 52200 reduce risks to ‘as-low-as-reason- 61111 ably-practical’. ITSRR is acutely Total 8 7 4 4 aware of the need for safe working practices, especially in regard to its considerable fi eld activities.

Waste Management

ITSRR has developed a waste management strategy that provides for recycling of used goods, use of recycled paper and photocopy cartridges and reductions in paper use.

Code of Conduct and Ethics

A copy of the Code is provided to all ITSRR staff on its Intranet service, and outlined to staff on induction. No changes were made to the code during the year.

Annual Report External Costs

The external cost of ITSRR’s annual report was $5067.00. It comprised costs relating to an external proof- reader, printing and preparation of CD’s.

124 ITSRR Annual Report 2004 - 05/Appendices Statement of Performance and Pay for SES Offi cers Level 5 and Above

ITSRR

Name: Carolyn Walsh

Title: Chief Executive

Remuneration: $225,000

Level: SES Level 6

Performance Pay: Nil

Performance Achievements: Successfully managed the functions of the Inde- framework for the implementation of the pendent Transport Safety and Reliability Regulator, Waterfall Inquiry recommendations; including the safety regulation of rail transport in • introduction of new standards in rail safety, NSW, the coordination of strategic safety issues including elements required of an operator’s across transport modes (rail, bus and ferry), and the Safety Management System and Medical Health provision of advice to Government on the reliability of Assessments; publicly funded transport services. • leadership in the development of National Model The 2004-05 fi nancial year saw a consolidation of Legislation by chairing the National Rail Safety ITSRR’s business development as a new agency. Package Steering Committee; • publication of the fi rst independent Survey of Major achievements during the period included: CityRail Customers; • provision of advice to Government on its • a major recruitment initiative resulting in over response to the Special Commission of Inquiry 90% staffi ng against establishment; into the Waterfall Rail Accident; • development of a Corporate Management System • a comprehensive review of transport safety Framework (supported by new IT and records legislation in light of the recommendations of the management systems) to ensure the quality of Waterfall Inquiry, which resulted in the enactment ITSRR’s business planning, policy development of the Transport Legislation Amendment and service delivery; and (Waterfall Rail Inquiry Recommendations) Act • management of ITSRR’s fi nances (net cost of 2005; service expenditure) to within 0.3% of budget. • development of a verifi cation and reporting

ITSRR Annual Report 2004 - 05/Appendices 125 ITSRR

Name: Kent Donaldson

Title: Executive Director, Transport Safety Regulation

Remuneration: $210,000

Level: SES Level 5

Performance Pay: Nil

Performance Achievements: • facilitated introduction of the national Successfully managed the Transport Safety Regula- classifi cation system (ONS1) for reporting of tion Division covering accreditation of rail operators safety incidents and accidents by operators; and actioning of audit and compliance activities to maintain and promote safe operations. Safe rail • Improved safety data integrity for use in analysis operations were also promoted through policies of safety performance.; and guidelines covering specifi c aspects of rail safety • developed and implemented policies and operations. guidelines for: • drug and alcohol testing. Major achievements included: • employee health assessments. • fatigue management; • development of the National Accreditation • conducted the Rail Network Vulnerability Analysis Package which covers accreditation requirements, to identify industry risks and hazard management guidelines for management of change and a strategies; national audit protocol; • managed accreditation assessment of a number • managed the implementation of of operators including ARTC and Queensland recommendations from the Special Commission Rail. of Inquiry into the Waterfall Accident including establishing a framework to prioritise, implement • oversaw implementation of enhanced compliance and monitor progress of adopting accepted auditing of rail operators. recommendations; • managed implementation of statutory enforcement measures.

126 ITSRR Annual Report 2004 - 05/Appendices OTSI

Name: Paul O’Sullivan

Title: Chief Investigator, Offi ce of Transport Safety Investigations

Remuneration: $218,280

Level: SES Level 5

Performance Pay: Nil

Performance Achievements:

Successfully managed the functions of the Offi ce of • responded to and initiated 11 OTSI investigations Transport Safety Investigations, including the inves- into serious rail, bus and ferry accidents and tigation of serious rail, bus and ferry accidents and incidents; incidents; review of operator investigation reports; • reviewed 79 rail operator investigation reports provision of an industry safety service through the and a further 149 reports which had been Confi dential Safety Information Reporting Scheme submitted to the former Transport Safety Bureau and analysis of events in other jurisdictions to deter- dating back to 2000; mine relevant safety trends. • provided the Minister for Transport with monthly The Chief Investigator reported directly to the Chair- statutory reports on those operator investigations person of the Independent Transport and Reliability reviewed by OTSI; Advisory Board. From the beginning of 2005 – 06, • submitted seven OTSI investigation reports to the the Chief Investigator will report directly to the Minister for Transport for tabling in Parliament; Minister for Transport. • received 72 reports through the Confi dential Safety Information Reporting Scheme and issued Specifi c achievements include: 41 Safety Valve Notices; • completed the recruiting of investigators to bring • provided a 24-hour reporting service for the the offi ce to full authorised establishment; notifi cation of safety critical accidents and • implemented an induction and training program incidents; for all staff; and • published a daily summary of incidents notifi ed to • ontinued the development and population of the OTSI through the incident reporting system and Accident Investigation Management Database; the immediate action taken; • contributed to the review of the Waterfall Special • received and reviewed “72-hour” incident reports Commission of Inquiry recommendations and from rail, bus and ferry operators as a follow-up preparation of the amendments to the relevant to notifi ed accidents and incidents; transport legislation.

ITSRR Annual Report 2004 - 05/Appendices 127 Freedom of Information Credit Card Certifi cation

There were no freedom of informa- The Chief Executive has certifi ed tion requests in 2004-05. that the use of credit cards was in accordance with Premier’s Memo- Privacy Management Plan randum and Treasurer’s Directions.

ITSRR has developed a compre- Response to Signifi cant hensive Privacy Management Plan Issues Raised by the which is available to staff on the Auditor-General intranet. No issues for ITSRR action were raised by the Auditor-General Principal Legislation during 2004-05 Administered by ITSRR

ITSRR exercises functions under the: Exemptions to reporting obligations • Rail Safety Act 2002 and Regulations made under that ITSRR does not require any report- Act; ing exemptions. • Passenger Transport Act 1990; • Transport Administration Act 1988.

Government Energy Management Policy

ITSRR’s energy use was audited and awarded a 5-star rating.

Acronyms

ITSRR Independent Transport Safety and Reliability Regulator

NTC National Transport Commission

ATC Australian Transport Council

SMS Safety Management System

OTR On-time running (of rail services)

SCOI Special Commission of Inquiry

CSIRS Confi dential Safety Information Reporting Scheme

128 ITSRR Annual Report 2004 - 05/Appendices Index

Accounts Payable Performance...... 123 Accredited Operators of Railways in NSW...... 115 Advisory Board Chairman’s Report...... 5 Action Plan for Women...... 121 Advisory Board...... 17, 116 Annual Report External Costs...... 124 Appendices...... 114 Auditor-General’s Report...... 90 Business Services Division ...... 28 Charter and Aims...... 116 Chief Executive’s Report...... 3 Code of Conduct...... 124 Consultants...... 121 Contact Details...... 131 Controlled Entities...... 123 Corporate Plan 04-05, 05-06...... 18,21 Corporate Strategy Division...... 27 Credit Card Certifi cation...... 128 Electronic Service Delivery...... 119 Equal Employment Opportunity...... 120 Ethnic Affairs Priorities Statement...... 123 Exemptions to Reporting Obligations...... 128 Executive Management...... 15,116 Financial Statements...... 93 Freedom of Information...... 128 Goals...... 21 Governance and Management...... 11 Government Energy Management Policy...... 128 Grants to Non-Government Organisations...... 119 Highlights and challenges...... 7 Human Resources...... 119 Industry Overview...... 32

ITSRR Annual Report 2004 - 05/Appendices 129 Index cont...

Key Functions...... 19 Land Disposal...... 121 Legal Changes...... 119 Letter to Minister...... ,...... 1 List of Major Assets...... 121 Major Works in Progress...... 119 Management and Structure...... 15,20 Notes to Financial Statements...... 98 Occupational Health and Safety...... 124 Offi ce of Transport Safety Investigations (OTSI)...... 30 Overseas Travel...... 122 Performance and Number of Executive Offi cers...... 124 Principal Legislation Administered by ITSRR...... 128 Privacy Management Plan...... 128 Publications...... 121 Rail Industry Safety Report 2004-05...... 38 Response to Signifi cant Issues...... 128 Risk Management and Insurance...... 12,123 Service Reliability Division ...... 26 Signifi cant Committees...... 119 Staff by Equal Employment Opportunity category...... 119 Statement of Cash Flows...... 95 Statement of Financial Compliance...... 96 Statement of Financial Performance...... 93 Statement of Financial Position...... 94 Statement of Values...... 21 Structure...... 20 Time for Payment of Accounts...... 122 Transport Safety Regulation Division...... 22 Transport Reliability Report 2004-05...... 64 Waste Management...... 124 Year in Review...... 9

130 ITSRR Annual Report 2004 - 05/Appendices Contact Details

Independent Transport Safety and Reliability Regulator [email protected] PO Box A2633 Sydney South NSW 1235 Lvl 22, 201 Elizabeth Street Sydney NSW 2000

Phone: 02 8263 7100 Fax: 02 8263 7200 www.transportregulator.nsw.gov.au

Offi ce of Transport Safety Investigations (OTSI)

PO Box A2633 Sydney South NSW 1235

Level 22, 201 Elizabeth Street Sydney NSW 2001 [email protected]

Telephone: 02 8263 7100 Facsimile: 02 8263 7299 www.otsi.nsw.gov.au

Confi dential Safety Information Reporting Scheme (CSIRS)

PO Box A2616 Sydney South NSW 1235 Email: [email protected] Telephone: 1800 180 828 Facsimile: 1800 180 528

ITSRR’s hours of business are 8.30am to 5.30pm Monday to Friday (except public holidays).

The Offi ce of Transport Safety Investigations and the Confi dential Safety Information Reporting Scheme operate on a 24-hour basis, every day.

ITSRR Annual Report 2004 - 05/Appendices 131