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2016-17 Queensland Rail Annual and Financial Report 2016-17 | Page 7 Chair’S Report

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2016-17 Queensland Rail Annual and Financial Report 2016-17 | Page 7 Chair’S Report Queensland Rail Annual and Financial Report 2016-17 General information This is the consolidated Annual and Financial Report 2016-17 (“the Translation and interpreting assistance report”) of Queensland Rail (ABN 68 598 268 528) and its subsidiaries, Queensland Rail is committed to providing accessible services to Queensland Rail Limited (ABN 71 132 181 090) (QRL) and On Track Queenslanders from all culturally and linguistically diverse backgrounds. Insurance Pty Ltd (ABN 18 095 032 670) (OTI). Queensland Rail is a statutory authority established under the Queensland Rail Transit Authority If you have diffi culty in understanding the report, please contact Queensland Act 2013 (Qld) (“QRTA Act”) and is a statutory body for the purposes of the Rail on 13 16 17 and we will arrange an interpreter to share the report with Financial Accountability Act 2009 (Qld) and the Statutory Bodies Financial you. Arrangements Act 1982 (Qld). Queensland Rail’s functions are detailed in Section 9 of the QRTA Act. Queensland Rail discharges its statutory functions through its wholly owned subsidiary QRL. QRL does not employ any personnel, but owns all non- employee related assets and contracts. It performs the role of rail transport operator under the Transport (Rail Safety) Act 2010 (Qld). OTI is a wholly-owned subsidiary of QRL. It provides insurance cover for claims on Queensland Rail, QRL and the Aurizon group of companies in respect of events up until 30 June 2010. Unless the context otherwise requires, Queensland Rail together with its subsidiaries QRL and OTI, are collectively referred to as “Queensland Rail” for the purposes of the report. A general description of the nature of Queensland Rail’s operations and principal activities is included in the report. This report is available, along with other useful resources, via the Queensland Rail website: queenslandrail.com.au For further information on Queensland Rail: Phone: 13 16 17 Mail: GPO Box 1429, Brisbane, Queensland, 4001 Registered Offi ce Queensland Rail Level 14, Rail Centre 1 305 Edward Street Brisbane, Queensland, 4000 Queensland Rail ABN 68 598 268 528 Copyright © Queensland Rail Limited 2017. Disclaimer While all care has been taken in preparing the report, Queensland Rail accepts no responsibility for decisions or actions taken as a result of any data, information, statement or advice, expressed, implied or contained in this report. Queensland Rail is committed to minimising the impact on the environment by printing a limited numbers of copies of this report. An electronic version of this report is available at queenslandrail.com.au Page 2 | Queensland Rail Annual and Financial Report 2016-17 305 Edward Street T 07 3072 0565 GPO Box 1429 F 07 3072 0090 Brisbane QLD 4001 queenslandrail.com.au The Honourable Jackie Trad MP Deputy Premier Minister for Transport Minister for Infrastructure and Planning Member for South Brisbane Level 39, 1 William Street BRISBANE QLD 4000 The Honourable Curtis Pitt MP Treasurer Minister for Trade and Investment Member for Mulgrave Level 38, 1 William Street BRISBANE QLD 4000 Dear Deputy Premier and Treasurer Queensland Rail Annual and Financial Report 2016-17 I am pleased to submit for presentation to Parliament the Queensland Rail Annual and Financial Report 2016-17. I certify that this annual report complies with: • the prescribed requirements of the Financial Accountability Act 2009 (Qld) and the Financial and Performance Management Standard 2009 (Qld), the Queensland Rail Transit Authority Act 2013 (Qld) and the Corporations Act 2001 (Cth), and • the detailed requirements set out in the Annual Report requirements for Queensland Government agencies. A checklist outlining the annual reporting requirements can be found on pages 47-48 of this annual report. As outlined in the report, a dividend of $100.5 million was declared for the year ended 30 June 2017. The Board unanimously endorses the Queensland Rail Annual and Financial Report 2016-17. Yours sincerely Phillip Strachan Chair 7 September 2017 cc: Neil Scales Jim Murphy Nick Easy Director-General Under Treasurer CEO Department of Transport and Main Roads Queensland Treasury Queensland Rail Queensland Rail Annual and Financial Report 2016-17 | Page 3 Table of contents Queensland Rail Annual and Financial Report 2016-17 About us 5 Chair’s report 8 CEO’s report 9 Fixing the trains 11 Operational performance 13 Financial performance 14 Safety and Environment 16 People and Culture 18 In the community 20 Citytrain 23 Regional Network and Freight 26 Travel and Tourism 28 Governance structure 30 Organisational structure 31 Board 32 Executive Leadership Team 35 Corporate governance 38 Summary of the 2016-17 Operational Plan 46 Compliance checklist 47 Glossary and acronyms 49 Queensland Rail Financial Report 2016-17 51 Page 4 | Queensland Rail Annual and Financial Report 2016-17 About us Queensland Rail’s purpose is to provide a safe, reliable, on-time, value for money and customer focussed rail service that benefi ts the community, supports industry and is integrated with the public transport system. The organisation’s vision is to connect communities through a modern, Queensland Rail’s Citytrain product primarily services the commuter world-class rail service. passenger market in South East Queensland (SEQ), with more than 51 million passenger trips undertaken in the 2016-17 fi nancial year. Queensland Rail is a statutory authority established by the Queensland Government under the QRTA Act and is a statutory body for the purposes Queensland Rail also maintains and operates a small fl eet of heritage of the Financial Accountability Act 2009 (Qld) and the Statutory Bodies services which are used for special events and charters. Financial Arrangements Act 1982 (Qld). The regional commuter market and rail tourism markets are serviced by The QRTA Act sets out the functions of Queensland Rail, including: the Travel and Tourism products. This comprises eight services connecting regional communities across Queensland with other regional centres and • Management of railways the SEQ corner, and supports the Queensland tourism industry through the • Provision of rail transport services, including passenger services provision of unique rail tourism experiences. • Construction and maintenance of railway infrastructure. Queensland Rail’s Regional Network and Freight product provides rail access Queensland Rail’s network extends more than 6600 kilometres across the for freight operators and other Queensland Rail supply chain customers, to state. The business operates the following three core services across multiple enable the transport of resources and general freight across the state. customer markets: Access to some of Queensland Rail’s network is regulated through an access • Citytrain undertaking given to the Queensland Competition Authority (QCA). • Travel and Tourism Queensland Rail employs more than 6500 people and has fi xed and other • Regional Network and Freight. assets valued at approximately $7 billion. Queensland Rail Annual and Financial Report 2016-17 | Page 5 Queensland Rail Chair Phillip Strachan and Chief Executive Offi cer Nick Easy. Page 6 | Queensland Rail Annual and Financial Report 2016-17 Queensland Rail Annual and Financial Report 2016-17 | Page 7 Chair’s report The 2016-17 fi nancial year has been On behalf of the Board, I would like to thank our responsible Ministers for challenging for Queensland Rail. their continued support in our endeavour to transform Queensland Rail into a world-class operator. Like them, we are committed to putting customers fi rst, Queensland Rail is proud of its track doing everything we can to deliver a sustainable timetable, and to record of service delivery throughout ‘fi x our trains’. its 152 year history. However in the last year we know we have let our Finally, the Board would like to recognise the many talented, hardworking customers down. This is disappointing employees who are committed to transforming Queensland Rail and given the high level of performance restoring service to the high level of performance that we pride ourselves on, that we pride ourselves on. particularly during a period of intensive public scrutiny. It has been incredibly humbling to see so many of our employees working to keep our business In response to signifi cant operational moving and deliver services for the travelling public during this diffi cult issues which aff ected Citytrain services period. in late 2016 and caused disruptions for our customers, Queensland Rail has Moving forward we are investing heavily to build a resilient rail network while made good progress on the Response and Recovery Program. This program also looking to maximise revenue opportunities through our assets that implements the recommendations from the 2017 Queensland Rail Train directly or indirectly enhance the customer experience, promote patronage Crewing Practices Commission of Inquiry (COI) and the subsequent ‘Fixing growth, and/or decrease costs. With a $685 million capital program in the trains’ action plan. 2017-18, we are focussed on modernising and maintaining our asset base through expansions throughout SEQ to improve capacity, upgrading While delivery of the Response and Recovery Program was a critical focus rollingstock to address demand, safety and comfort, modernising stations for Queensland Rail in 2016-17 and beyond, there is no silver bullet or to improve customer experience and accessibility, and carrying out regular quick fi x to resolve these issues. The improvements we have made,
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