Annual Report 2010 –11 Cover: Artist’s impression of the Glen Waverley Transit-Oriented Development. l VicTrack Annual Report 2010–11 Contents 1 – About VictrAck 2 VicTrack – a snapshot 2 Chair’s Report 3 Core functions and business units 4 2 – outcomes report 5 Delivering value to transport 5 Delivering value to whole-of-government 7 Letter to Ministers 3 – stAtutory And FinAnciAl reporting 8 Corporate governance 8 Statutory information 11 Financial performance 13 Independent auditor’s report 15 17 August 2011 Statutory Statement 17 Comprehensive Operating Statement 18 The Hon Terry Mulder MP The Hon Kim Wells MP Balance Sheet 19 Treasurer Minister for Public Transport Statement of changes in equity 20 Level 16, 121 Exhibition Street 1 Treasury Place Cash flow Statement 22 Melbourne VIC 3000 East Melbourne VIC 3002 Notes to the financial statements 30 June 2011 23 Disclosure index 76 Dear Ministers I have much pleasure in submitting the Annual Report for VicTrack Appendices 78 for the period of 1 July 2010 to 30 June 2011 for your presentation to Crossing Upgrades 2010–11 78 Parliament. Board members 79 Yours sincerely Executive team and organisational structure 80 Mission, vision, values 81 Bruce Cohen Chair Part 1 – About VicTrack 1 Part One – About VicTrack VicTrack – a snapshot Victorian Rail Track (VicTrack) is a Victorian VicTrack undertakes property, telecommunications Government business enterprise with a and other commercial activities, ranging from property development that supports transport, objectives and charter to add value to the State’s public extensions to its fibre optic network to investments in transport assets (primarily rail) and support freight terminals under its control. the delivery of public transport in a safe VicTrack revenue funds a wide range of social and and efficient manner. environmental activities, including: > the restoration of heritage rail buildings and other assets > providing more than 400 leases of railway land to local councils and community groups and clubs at non- commercial rents > a significant ongoing program of land decontamination, asbestos identification and removal and flora and fauna management. VicTrack is also the custodial owner of Victoria’s railway land, infrastructure and much of its rolling stock. Almost all these assets are leased to Victoria’s rail and tram operators via the Director of Public Transport. Those operators are responsible for managing the assets and delivering public transport or rail freight. VicTrack was created in 1997 under section 8 of the Rail Corporations Act 1996 and is a State Owned Enterprise with an independent Board reporting to its sole shareholder, the Victorian Government. VicTrack reports to both the Minister for Public Transport and the Treasurer and operates under the Transport Integration Act 2010. In its various businesses, VicTrack works closely with the Department of Transport and Department of Treasury and Finance, public transport franchisees, Department of Business and Innovation, telecommunications carriers, VicRoads, local councils and a broad range of other stakeholders including the property development sector, peak bodies and community groups. 2 VicTrack Annual Report 2010–11 Chair’s Report VicTrack has enjoyed a busy and successful year, Throughout the year we also worked with the local demonstrated by improved outcomes across all areas of community to restore Creswick’s historic railway station for our business and stronger relationships with key customers, community use. We look forward to exploring other uses stakeholders and business partners. for vacant railway buildings. As an organisation, we are now well placed to drive further The Board had set challenging financial targets during the growth and help deliver the new Victorian Government’s 2010-11 financial year, all of which have been achieved. transport agenda. Organisationally, this year has seen ongoing improvements In 2010–11, we successfully launched the major IKON in the way VicTrack works. A new system for tracking injury development next to Glen Waverley railway station with and illness was introduced, which revealed a 35 per cent our partner, Consolidated Properties. This project will reduction in VicTrack’s injury rate over the past three years. provide train and bus services at the doorstep of 116 We are well below industry benchmarks for both lost time apartments, nine strata office suites and 1,000 square injuries and injuries resulting in claims. metres of retail space. For the third year in a row our annual staff survey found the Significant progress was also made on the redevelopment majority of VicTrack employees feel engaged and supported of the Wodonga Central precinct. VicTrack worked closely by the organisation, with 72 per cent agreeing VicTrack was with Wodonga City Council, Wodonga Chamber of a ‘truly great place to work’. Commerce, local businesses and residents on plans to VicTrack is looking forward to the year ahead, particularly revitalise the city. The new Urban Renewal Authority will the opportunity to plan and deliver a range of property deve- now deliver the project, building on VicTrack’s work. lopment projects that support transport and urban renewal. The last 12 months has also seen major progress on two key We are also well placed to support the Government’s telecommunications projects, with VicTrack’s work on the transport plans, including studies for the Doncaster Rail new Digital Train Radio System and the new fibre network Link and the Avalon Rail Link, upgrades to the freight rail for Metro Trains Melbourne both nearing completion. These network, and broader priorities for urban renewal and projects will provide significant benefits to the transport sector regional development. in terms of fast, reliable voice and data services. And we are ready to start on safety upgrades to a further Other highlights included connecting an extra six TAFE 75 level crossings throughout country Victoria thanks to a institutes to the TAFE Broadband Network to provide them $33 million Government commitment. with reliable high bandwidth services, and work to progress the upgrade of mobile phone services in the Melbourne As we look towards the future, I want to take this Underground Rail Loop. opportunity to thank all those who have contributed to VicTrack’s achievements over the past year. Improving the safety of Victoria’s rail assets is one of VicTrack’s ongoing commitments. During the past year we In particular, I want to thank my fellow Board members, completed 24 level and pedestrian crossing upgrades. Chris Lovell (Deputy Chair), Jenny Roche and Sam Andersen for their hard work and integrity. I also want to We also installed new standard gauge track connections thank the Minister for Public Transport, Terry Mulder, and at Dynon Intermodal Terminal to improve its operational other Ministers for their support and encouragement. efficiency. These works have reduced train shunting requirements for arrivals and departures and improved Finally, and most importantly, I want to acknowledge train capacity. the dedication of VicTrack staff, led by Chief Executive Bob McDonald. Bob’s strong leadership Protecting Victoria’s rail heritage continued to be a priority is helping VicTrack become an even more for VicTrack. Maldon railway station was fully restored after effective, customer-driven organisation. a devastating fire in October 2009. In addition, the rail heritage team was recognised by the City of Greater Geelong and The National Trust of Australia for its fine restoration work of Geelong Signal Box B. Bruce Cohen Chair Part 1 – About VicTrack 3 Core functions and business units VicTrack’s structure consists of three main > sales and acquisitions departments supported by business services > land records including finance, human resources, legal, > maintaining infrastructure and property that is not leased safety, environment and risk, and stakeholder to other parties and community relations. > managing and developing key rail-based sites in the Melbourne area VicTrack also administers the Rolling Stock Holdings group of companies on behalf of > providing rail track access to strategic central Melbourne areas, including Dynon terminals the State. > managing heritage buildings and rolling stock assets > providing transport and logistics advice to freight-related Telecommunications authorities and groups The Telecommunications Department is responsible for: > improving VicTrack’s safety systems and maintaining Rail Safety Accreditation. > managing a telecommunications network of fixed fibre optic and copper cabling and a substantial This Department is also responsible for maintaining and wireless network improving the yield of the outdoor advertising portfolio. > supplying rail and tram operators with a diverse range of telecommunications services under commercial contracts Capital Projects > working in partnership with the Department of Transport The Capital Projects Department is responsible for: to deliver critical communications projects > project managing for the Department of Transport > leveraging surplus network capacity to improve the Victorian Government’s Level and Pedestrian broadband access for the government sector. Crossing Upgrade Program (which includes the Disability Discrimination Act 1992 upgrade program) > administering the Australian Level Crossing Property Assessment Model (ALCAM) system and database, and managing a program of level crossing safety The Property Department is responsible for a large research and