State Rail Authority of New South Wales 2000-2001 Annual Report About our Annual Report
1 Letter to the Minister
1 Our Charter
2 Statement of Purpose
2 Statement of Values
3 What we do
3 Our Structure This Annual Report for 2000-2001 aims to provide readers with a better 4 Chairman’s Report understanding of what State Rail does and the challenges we face. 8 Acting Chief Executive’s Report We have highlighted both our achievements and the areas we need to 12 State Rail Performance Indicators improve. In particular, we have acknowledged the hard work of our staff to deliver transport for the Sydney 2000 Olympic and Paralympic Games. 14 Organisational Structure
State Rail has produced 1,200 reports at a cost of approximately $42 each. 16 The Board This cost includes preparation of the report for posting on the Internet. 17 The Year in Review
This report is available at State Rail’s website, www.staterail.nsw.gov.au. 17 01 Rail Safety
20 02 Preparations for the Olympic and Paralympic Games
20 03 Service Quality
24 04 Financial Overview
25 05 Environmental Performance
26 06 Human Resources
27 07 Corporate Legal Services
27 08 Improving Access
28 09 Communications and Marketing
30 10 Strategic Projects
30 11 Information Technology and Telecommunications
30 12 Business Services
31 13 Delivering the Sydney 2000 Olympic and Paralympic Games Transport Task
35 Network Maps
37 Financial Statements
69 Appendices
100 Index Letter to the Minister Our Charter
The Hon P C Scully, MP The State Rail Authority of New South Wales Minister for Transport is established by Part 2 of the Transport Minister for Roads Administration Act 1988 (NSW). Level 36, Governor Macquarie Tower Commencement of schedules 1 to 3 of the 1 Farrer Place Transport Administration Amendment (Rail SYDNEY NSW 2000 Management) Act 2000 effected changes to the Transport Administration Act 1988 and other Acts. Schedule 3 of the Transport Dear Minister Administration Amendment (Rail Management) Act amended the objectives of State Rail, and removed the previous provision that I have pleasure in submitting, for your information and presentation to Parliament, qualified the power of the Minister for the State Rail Authority of New South Wales’ Annual Report for the year ended Transport to give directions to State Rail, its 30 June 2001. Board and Chief Executive. The Authority is: • required, as its principal objective, to The report has been prepared in accordance with the Annual Reports (Statutory deliver safe and reliable railway passenger Bodies) Act 1984 and the Public Finance and Audit Act 1983. The NSW Audit services in an efficient, effective and Office has audited the financial statements of the Authority and the Auditor- financially responsible manner; and General’s Report is included. • in exercising its functions, required to act in the best interests of the NSW rail network as a whole. Yours sincerely Other objectives of State Rail, of equal importance but not as important as its principal objective, are: • to be a successful business and, to that end: P A Binsted i) to operate at least as efficiently as any Chairman comparable business, and ii) to maximise the net worth of the State’s investment in State Rail. • to exhibit a sense of social responsibility by having regard to the interests of the community in which it operates. • where its activities affect the environment, to conduct its operations in compliance with the principles of ecologically sustainable development. •to exhibit a sense of responsibility towards regional development and decentralisation in the way in which it operates.
State Rail’s statutory functions include: • operating railway passenger services, subject to the requirements of the Rail Safety Act 1993, and •in connection with its railway services, operating other transport services, including bus services.
1 Statement of Purpose Statement of Values
State Rail’s business is moving people. In order to achieve our vision, State Rail: • strives to be candid with staff and We aim to: the public in all our plans; • be a responsible, innovative and customer-oriented passenger • respects all staff for the value they rail organisation, and add to the organisation; • increase patronage, expand the passenger rail network and • pursues our goals by working reduce our net cost to the Government. together for a common purpose; More specifically, our strategic directions are to: • expects all managers and staff to be agreed on outcomes; Safety • expects decisions to be based • increase the safety of train operations; on facts, and • improve our Occupational Health and Safety performance; • expects all managers and staff to •improve customer perceptions of safety; act in an ethical and honest manner. • reduce crime and anti-social behaviour, and • reduce environmental risks. Work is underway on a new Statement of Purpose and a new Statement of Quality Values to better reflect State Rail’s new • provide consistent excellence in passenger services and facilities; corporate structure. • improve timetable reliability; • improve customer service, including information, signage, ticketing, Our Board Code of Conduct and staff presentation and accessibility. comment on our Staff Code of Conduct can be found in Appendices 2 and 3. Finance •maximise revenue through increased patronage, appropriate pricing and revenue protection; • apply technology to improve business efficiency; •improve discipline in our capital investments, and • reduce overhead costs and seek productivity improvements in all areas.
People • improve internal communication; • articulate meaningful roles for staff; •increase individual capabilities, and • ensure and promote equal opportunity.
2 What we do Our Structure
State Rail provides passenger rail Countrylink operates daily XPT To encourage management and staff transport through its CityRail and services between Sydney and of State Rail to work together with a Countrylink services. Brisbane, Murwillumbah, Grafton, common purpose and shared overall Dubbo and Melbourne, while objective, a structured plan was CityRail is the metropolitan daily Xplorer rail services operate developed to deliver changes under passenger provider and carried between Sydney and Canberra, the One State Rail banner. 302.6 million passenger journeys Armidale and Moree. across 306 stations in 2000-2001. Its It was recognised that the former network connects Sydney to regional Countrylink also operates 34 Travel State Rail structure had in some areas as far as Scone and Dungog Centres and eight other booking areas too many management layers in the north, Bathurst to the west, offices which sell and promote point- with the structure aligned to ‘brand Goulburn in the Southern Highlands to-point travel as well as Countrylink names’ which raised barriers when and Bomaderry on the South Coast. holiday packages, city and regional conducting business. Over 50% of all passengers travelling day tours and attractions. These A Delivery Plan was developed to to Sydney’s Central Business District outlets are supported by over 400 achieve a One State Rail culture in peak hours travel by CityRail. It is accredited travel agents and sales which emphasises the need to work one of the most complex passenger outlets throughout NSW, ACT, together. The Plan identified where rail operations in the world. Brisbane and Melbourne. improvements can be made and Countrylink operates long distance At 30 June 2001 the fleet comprised provides the platform for the passenger rail services across 1,514 electric rail cars and 144 implementation of best practice. New South Wales and beyond, diesel rail cars. In order to provide a consistent and carried 2.1 million passenger approach across the rail industry, journeys in 2000-2001. It operates the changes have been managed 162 rail services and 578 coach through the Office of the services per week. Many of these Coordinator General of Rail, as coach services are the only mode was the merger of the Rail Access of public transport from town to town Corporation and Rail Services in rural areas of New South Wales. Australia to form the new Rail Countrylink services are a direct Infrastructure Corporation (RIC). transport link to the capital cities of The first step in the implementation the ACT, Queensland and Victoria. of the One State Rail Delivery Plan involved realignment of the top management structure. This was announced on 24 January 2001.
3 Chairman’s Report
2000-2001 has been a year of re-building and re-strengthening the State Rail network. The NSW Government has invested over $1 billion on infrastructure and maintenance since December 2000.
The investment in the network is The quality of the environment and most welcome and will go far to the future of our children depend assist us in continuing to improve on an efficient, clean, mass public the level of service we provide to transport system. In rural and CityRail and Countrylink passengers. regional areas, rail is essential to linking the population to the cities as In addition, major works have been well as for the movement of freight. undertaken to upgrade a number The relative funding, both public and of stations across the network. private, associated with road and rail The Premier’s mid-term address infrastructure must be assessed and gave State Rail the funding boost careful consideration given to the it needed to fast track the delivery total cost and total benefit of of the Turrella to Kingsgrove expenditure on each asset type. quadruplication on the East Hills Safety line. It further committed State A major focus of the State Rail Board Government funding for the delivery over the past year has been to of 60 additional carriages for the promote greater awareness of Sydney metropolitan area plus safeworking standards and initiatives a further 40 carriages for Intercity right across the organisation. services. The McInerney Inquiry highlighted The future development of the city the need for immediate improvement of Sydney in particular, and New in safety standards throughout NSW South Wales in general, is, in no rail agencies and much effort at small part, dependent on the State Rail has gone into improving ongoing commitment of funds to our performance in this area. the maintenance and development of the rail infrastructure asset in The recommendations arising from New South Wales. the Interim Report of the McInerney Inquiry pertaining to the Glenbrook accident have been extensively progressed with full implementation being achieved for the majority of the recommendations.
4 The recommendations that have not been fully implemented are now in the final stages of completion. In January this year, State Rail re-established the position of Executive Director Safety. This restructure gave the promotion of safety a more centralised place in State Rail’s management structure.
We have also achieved marked improvements across a range of safety initiatives. The total number of incidents reported across the network is showing a downward trend for the 12 months to June 2001. This includes everything from broken rails to injuries sustained by staff and passengers. The measure also includes incidents that did not result in serious injury or death, but which may have had the potential to, such as Signals Passed at Danger, or SPADs.
Safety incidents involving rolling stock have also declined over the past two years.
Another major safety initiative currently under way is the revision of, and improvement in, documentation of all Safe Working Requirements or operational rules within State Rail.
Our Safe Working Requirements are developed in consultation with the Rail Infrastructure Corporation. Adherence to Safe Working Requirements by State Rail staff has improved over the past year, which reflects a greater commitment to the training of our staff.
CCTV Operator Julie Duckitt talking with Chairman Paul Binsted at Central Station. To further enhance training, State Finance Rail is currently procuring improved In 2000-2001, CityRail farebox revenue simulation technology which will was $483.4 million, representing 31% provide all rail safety workers with of CityRail’s expenses of $1.6 billion. access to simulation technology, as CityRail passenger journeys increased well as improving and strengthening by 24 million and CityRail passenger the role of in-cab simulation for train revenue rose by $30.4 million (6.7%). drivers. For many years, State Rail The Olympic and Paralympic Games has used in-cab simulators to assist accounted for 17 million of the total with the training of drivers, however, additional passenger journeys for the these were chiefly used to train year and $23.5 million in passenger drivers in the identification and revenue. rectification of faults and failures. Board Changes The improved simulation will provide There have been a number of a graphics environment for staff so changes to the Board since the that training in hazard and situational beginning of the year. awareness can ensure staff are better prepared for all emergency As previously reported, Mr Simon and degraded operational Lane resigned as Chief Executive circumstances. and a Director on 30 October 2000. Other members who left the Board A Joint Boards Safety Liaison since the commencement of the year Committee has recently been were Ms Joanne Curin, Mr Ron established in partnership with the Christie, Mr Anthony Sheldon and Rail Infrastructure Corporation Board. Mr Anthony Shepherd. The aim of this Committee is to foster co-operation, commitment and Ms Gabrielle Trainor, a former understanding between State Rail director of the NSW State Transit and Rail Infrastructure Corporation in Authority and Rail Access respect of safety issues, with a view Corporation, was appointed to to improving safety attitudes and the Board in February 2001. behaviour across both organisations. On behalf of the Board, I would like to thank former Directors for their contribution to the Board’s deliberations.
6 Chairman’s Report
Management and Staff The Board wishes to extend its Mr Ron Christie, who was appointed thanks to all State Rail staff for their in November 2000 as Acting Chief loyalty and commitment over the Executive and Coordinator General past year. Our passenger loads of Rail, retired on 8 June 2001. continue to grow each year and it is During 2000-2001, Mr Christie only thanks to the commitment and presided over the great success of professionalism of our staff that our rail transport during the Olympic and standards remain high and our Paralympic Games and implemented goals are met. a range of initiatives aimed at improving customer service levels and improving coordination between passenger rail agencies, including the management of incidents across the agencies. P A Binsted On behalf of the State Rail Board, Chairman I would like to take this opportunity to again thank Mr Christie for the tremendous contribution he has made to the NSW Public Service and to NSW rail over the past 47 years.
Mr Lucio Di Bartolomeo, Managing Director of Freight Rail Corporation, was appointed Acting Chief Executive, and a Director, on 9 June 2001 until a new Chief Executive is appointed.
Since the end of the year, we have also farewelled Mr John Lee as Executive Director Communications and welcomed Ms Catherine Herriman as Executive Director Safety.
7 Acting Chief Executive’s Report
The past year has been marked by a number of tremendous achievements for State Rail. Pre-eminent amongst these was the triumphant Olympic rail effort.
The efficient and reliable service Customer Service provided by State Rail over the 2000-2001 has also been Olympic period was lauded around characterised by a renewed focus the world as a major contributing on the provision of high levels of factor to the success of the Sydney customer service across State Rail. 2000 Olympic Games. Our Olympic A concerted effort has been made planning was so successful that to improve the quality and we are continuing to use similar immediacy of our communications principles for our future plans and with customers. arrangements across the network. Pagers and mobile phones have Our Olympic success would not been issued to operational staff have been possible without the over the past year. This is aimed support and dedication shown at providing better quality, ‘real time’ over a number of years by staff information to passengers on delays from right across State Rail. and incidents. Key information is disseminated by trained Passenger Capital Expenditure in Information Officers. the Network Over the past year, the Carr We have expanded and better Government has substantially resourced CityRail’s Passenger increased funding to NSW rail Information Unit. This has enabled allowing an upgrading of us to provide 24-hour monitoring infrastructure and equipment. of incidents occurring on the CityRail network. Work has also continued on the expansion of the East Hills Line and Western Line to Richmond and the electrification of the line between Dapto and Kiama. These projects will bring enormous benefits to these regions and will help deliver more reliable services to our passengers.
8 Farebox Revenue $m 600 target
500
400
300
200
100 Olympics CityRail non Olympics Countrylink 57 391 56 453 55 370 51 349 52 494 43 460 24 00/01 01/02 96/97 97/98 98/99 99/00 The Rail Coordination Centre was established prior to the Olympic Games to monitor the operation of all aspects of the NSW rail network and coordinate the response of the various divisions and rail entities during disruptions. It provides a Passenger Journeys customer-focused monitoring and per Employee 000's Operating Expenditure $m management system designed to 34 2000 ensure the best possible service 1800 target 33 performance is achieved for our target customers, through the coordinated 1600 32 efforts of all divisions. 1400 1086 31 1147 For the first time, a range of 1200 948 1009 1007 measures charting CityRail’s 998 30 1000 operational performance is now 33
32.6 800 published weekly on the CityRail 29 32.5
website: www.cityrail.nsw.gov.au. 31.2
600 222 209 219 186 184 These include on-time running 28 156 400 Non payroll costs statistics as well as fleet reliability 29.1 28.8 Employee entitlements 506 27 503 & Workers Compensation 445 441 indicators. The publishing of these 200 432 422 Payroll costs figures represents the fulfilment of a promise made by the Minister 00/01 00/01 01/02 01/02 99/00 96/97 97/98 98/99 96/97 97/98 98/99 99/00 for Transport and helps to increase our accountability to our customers.
CityRail has also produced a Customer Service Commitment document. This outlines our responsibilities to our customers 00/01 includes Olympic and Paralympic Games journeys 00/01 includes Olympic and Paralympic Games expenses and the standards of service we aim to provide.
9 Acting Chief Executive’s Report
Service Quality Passenger revenue rose by One State Rail Restructure CityRail’s on-time running performance $16 million (3%). This comprised In January 2001, a major restructure averaged 89.9% for the year and $23 million from Olympic passengers, of State Rail was announced by the Countrylink’s averaged 69.3%. $7 million from additional CityRail then Acting Chief Executive and passengers, less $14 million (21%) Coordinator General of Rail, Mr Ron During the year CityRail services due to fewer Countrylink passengers. Christie. The major features of the carried 302,600,000 passenger Long distance passenger numbers restructure were: journeys and Countrylink carried fell because of competition from new • the creation of a Shared Services 1,564,689 rail and 540,865 coach domestic airlines and the resulting function; journeys. discounted airfares. Countrylink • the amalgamation of Countrylink Financial Performance passenger journeys decreased from and CityRail administrative and Government support increased by 2.4 million to 2.1 million (12%) management structures; $230 million (or 24%) during the year. despite discounted train fares. •the creation of a new Communications and Marketing Olympic Games rail services Social program (Community Division, and during the year resulted in revenue Service Obligation) funding rose by • the establishment of the Capital of $23 million and expenses of $114 million (24%) to $593 million. Works and Development and $73 million. The net cost ($50 million) This covered the net cost of Safety Divisions. Olympic train services ($50 million), was funded through social concession fares, other pricing program funding. support and normal levels of Glenbrook Accident non-commercial services. Over the past year, State Rail has Government contributions and worked hard to implement all capital grants rose by $115 million recommendations arising out of (24%) to $597 million. This included the Special Commission of Inquiry substantial extra funding for rail into the Glenbrook Rail Accident, service improvements including including the on-going installation increased train maintenance and of Metronet radios on all State Rail cleaning, safety critical training and rollingstock and the elimination of infrastructure expansion grants. areas of ‘dark territory’ across the network.
State Rail also made a full submission to the Inquiry which was coordinated by the Coordinator General of Rail.
10 Community Service Working groups were also convened Capital Program $m Obligation Grants $m covering each of the new divisions. 350 target 700 The groups were charged with the responsibility of overseeing the 300 600 target restructure process and advising 50 of any changes or improvements 250 500 14 deemed necessary.
200 138 400 As Ron Christie said on announcing his decision to retire after 47 years, 342 150 300 595 “It is not just my vision, but my firm 145 543 508 248 1 496 484 belief that the legacy of the Games 465 100 222 68 24 200 will be a lasting one for the new 174 121Olympics 15
millennium of State Rail. The timing 135 Airport Line 50 100 now seems right that I should State Rail Olympics 74 Program Non Olympics conclude my career with One State Rail. The blueprint has firmly been 01/02 00/01 00/01 01/02 laid for our organisation to continue 96/97 97/98 98/99 99/00 96/97 97/98 98/99 99/00 its focus of improvement in key areas particularly safety, customer service, on-time running and training and I have no doubt you will deliver”.
I have every confidence that he is right.
Lucio Di Bartolomeo Acting Chief Executive
11 State Rail Performance Indicators
Year ended 30 June Notes 1991-1992 1992-1993 Quality CityRail Passenger journeys (million) 1 243.8 229.8 Suburban on-time running (% to 3 minutes of timetable) 90.3 92.0 Intercity on-time running (% to 5 minutes of timetable) 91.5 92.1 Customer satisfaction survey (%) 7 Countrylink Passenger journeys (million) 2 2.3 2.2 On-time running (% to 10 minutes of timetable) 3 84.8 87.9 Customer satisfaction survey (%) 7 Finance (expressed as 2000-2001 $m) Operating expenditure 1, 4 N/A N/A Passenger revenue 1, 4 402.1 386.6 Capital program (including capital grants to RIC) 1, 4 N/A N/A Government contributions (Community Service Obligation payments) 1, 4 N/A N/A Total revenue 1, 4 N/A N/A Cost per passenger journey ($/journey) 1, 4 N/A N/A Safety Staff Lost Time Injury Frequency Rate (%) 5 82.5 75.8 Staff Injury Duration Rate (days) 5 32.1 30.2 Incidents per million passenger journeys 6 People Staff 5 24,467 22,803 Female employees (%) 5 7.9 8.0 Absenteeism (average days per year per employee) 9.95 10.86
Notes: 1. Statistics in the table include revenue, expenditure and passenger journeys associated with the Sydney 2000 Olympic and Paralympic Games. 2. Countrylink passenger journeys include all rail, intercity coaches and feeder coach services. 3. Countrylink on-time running statistics are reported for trains only; timetabled coach services are excluded. 4. On 1 July 1996 responsibilities for NSW railways were restructured and many of the functions, assets and liabilities of the State Rail Authority were transferred to Rail Access Corporation, FreightCorp and Railway Services Australia. The results for State Rail since 1996 are therefore not directly comparable with earlier data. 5. The decrease in State Rail staff numbers in 1996 reflected the formation and separation from State Rail of Rail Access Corporation, FreightCorp and Railway Services Australia. 6. ‘Incidents’ are defined as including rail collisions, derailments, falls and fires. 7. Customer satisfaction surveys were not conducted in all years. The Countrylink survey methodology used in 1999-2000 and 2000-2001 differed to that used in previous years, so the results are not directly comparable.
12 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001
234.8 249.6 256.4 264.7 266.5 270.5 278.7 302.6 92.2 90.8 88.7 86.4 91.4 92.5 85.4 89.7 93.1 92.2 91.9 90.1 94.0 93.0 90.3 91.0 69 72 74 75 78 N/A N/A
2.1 2.2 2.4 2.5 2.5 2.4 2.4 2.1 84.8 86.3 89.0 87.0 85.0 77.3 59.2 69.3 91 90 78 83
N/A N/A N/A 1,784.3 1,776.1 1,783.6 1,683.9 1,874.3 384.2 410.0 421.4 454.9 479.9 497.2 550.0 534.4 N/A N/A N/A 301.4 242.2 337.1 332.4 249.1 N/A N/A N/A 561.5 547.7 525.9 508.7 593.1 N/A N/A N/A 685.5 679.7 682.5 753.1 698.3 N/A N/A N/A 6.68 6.60 6.54 5.99 6.15
96.8 65.7 69.5 66.6 57.4 46.0 42.2 41.0 34.6 37.5 38.6 18.3 17.0 10.2 8.9 7.4 5.2 5.3 4.1 4.0 3.9 3.5 3.09 2.9
21,270 20,186 19,742 9,344 9,317 8,544 8,966 9,017 8.6 9.2 9.8 15.1 15.4 15.3 19.0 19.0 10.83 10.1 9.82 9.15 12.75 10.42 9.46 9.74
13 Organisational Structure
from left: Peter Scarlett, Lucio Di Bartolomeo, Fran McPherson, John Shields, Helen Vickers, Ron Creighton, Margaret Brazel, Arthur Smith, Geoff Amos and John Lee. Geoff Deacon and Owen Henry were unavailable for photography.
State Rail Authority Organisation structure as at 30 June 2001
The Board
Acting Chief Executive Lucio Di Bartolomeo
Corporate Executive Director Executive Director Executive Director Executive Director Counsel Safety Communications Human Resources Finance & Marketing
Helen Vickers Owen Henry (Acting) John Lee* Fran McPherson* Peter Scarlett*
– Legal – Safeworking – Public Affairs – HR Policy – Financial – Corporate – OH&S – Media – Equity Accounting Secretary & – Safety Audit – Marketing – Industrial Relations – Management Board Support – Investigation – Publications – Training Accounting – Records Management – Passenger – Change – Economic – Moveable Heritage Information Management Evaluations – Community Relations – Audit and – Strategic Investigations** Communications
* Indicates undertaking dual role in conjunction with office of Coordinator General of Rail position. ** The Director, Audit and Investigations has a direct reporting line to the Chief Executive and the Board Audit Committee for audit matters.
14 Executive Director General Manager Chief Operations General Manager General Manager Project Director Capital Works Information Manager Passenger Fleet Station Operations Strategic Projects and Development Technology & Maintenance Telecommunications Arthur Smith Geoff Deacon Ron Creighton John Shields (Acting) Geoff Amos Margaret Brazel
– Capital Expenditure – Applications – Train Control – Maintenance – CityRail Stations – Major Acquisitions – Infrastructure – Train Planning Depots – Countrylink Stations, – Strategic Planning – System Development – Train Crewing – Quality and Sales, Reservations – Asset Management – On Board Staff Technical Support and Passenger Interface – Protective Services – Revenue Protection – Ticketing
15 The Board
• Endorsing plans, performance targets and budgets; • Assessing the performance of the Chief Executive and senior management; • Monitoring policies, procedures and internal controls to minimise the organisation’s risks; • Ensuring compliance with statutory and legal obligations and meeting from left: Samantha Mostyn, Anthony Shepherd, Board Members ethical and corporate governance Ron Cunningham, Joanne Rees, Lucio Di Bartolomeo, At 30 June 2001, the Board Paul Binsted and Gabrielle Trainor. standards; and comprised six non-executive directors • Monitoring performance to ensure and the Acting Chief Executive: activities are carried out properly Paul Binsted and efficiently. The State Rail Authority Board Chairman/Non-executive Director is established by the Transport Board members are able to seek Lucio Di Bartolomeo Administration Act 1988. This independent professional advice at Acting Chief Executive/ requires a minimum of four and the expense of State Rail to assist in Ex-officio Director a maximum of seven directors plus the performance of their duties. the Chief Executive. Ron Cunningham In the 2000-2001 year, the Board Non-executive Director The Minister for Transport appoints met 11 times; 10 of these meetings directors and also nominates the Samantha Mostyn were scheduled and one special Chairperson after being reviewed Non-executive Director Board meeting was held where the by Cabinet. The term of appointment matter could not be held over to Joanne Rees is a maximum of three years with a scheduled meeting. The Board held Non-executive Director candidates eligible for reappointment. one meeting at a State Rail site to meet staff and to inspect operations. Anthony Shepherd The Board’s remuneration is an Senior management attends Board Non-executive Director annual fee determined by the and committee meetings by invitation. Premier of NSW, based on State Gabrielle Trainor Measuring Performance Rail being a Category B Governing Non-executive Director Board. The annual fees for the The Board meets quarterly with 2000-2001 year were: Biographies setting out the no executives present to review the Chairperson qualifications and experience of Chief Executive’s performance. $54,000 per annum board members are included in The Chief Executive then joins the Appendix 1. discussion of senior management Non-executive directors performance. $32,000 per annum The Role of the Board The functions of the Board include: Corporate Governance • Establishing goals and strategic arrangements for the Board are direction; set out in Appendix 1. • Determining policies; 16 The Year in Review
1Rail Safety • Allowing for random drug and The Rail Infrastructure Corporation is alcohol testing of employees re-writing the eight existing volumes State Rail’s Corporate Safety Unit undertaking safety critical work; and of the Safeworking Rules. State Rail which reported to the General • Establishing a new regulatory is contributing to the development of Manager, Organisational framework for the industry. these rules and network procedures Development is now a separate and is also developing, validating Safety Division which has been The Minister for Transport asked and signing off its own operator- created under an Executive Director, the rail agencies and the Department specific procedures (OSPs). Safety, reporting directly to the Chief of Transport to work closely together Executive. This change was effected in giving detailed consideration and Training of staff in the Work On under the One State Rail restructure. advice to government. Progress has Track Rules and Procedures already been made in implementing (including OSPs) has been The division was established to deal a range of the Report’s incorporated in a training program with all facets of safety, including recommendations. State Rail has which will commence at Australian management and performance of approved the purchase of train Rail Training on 30 July 2001. safety systems, bringing together simulators to improve training all safety personnel and resources. State Rail continued to pay particular opportunities and has also It ensures that State Rail assesses attention to preventing trains from approved funding to fit all trains all safety risks and implements passing through red signals or with data loggers. strategies for delivering a safe ‘Signals Passed at Danger’ (SPADs). environment for employees, Both State Rail and the Rail Management systems are in place customers and the community. Infrastucture Corporation have been in an endeavour to address SPADs, working through each of the ensuring full investigation and Special Commission of Inquiry remaining recommendations to reporting when they do occur and into Glenbrook determine any issues or problems implementing any lessons learned Justice McInerney presented to the that might be involved in to prevent repetition. In developing Government his final report on the implementing the recommendations. its reduction measures, State Rail Glenbrook rail accident in April 2001. The Office of the Coordinator is working closely with all external The report contained 95 General of Rail is coordinating these stakeholders as part of a concerted recommendations about the activities, ensuring the rail entities effort across the industry to management and operations within work collaboratively in responding eliminate SPADs. the rail industry and the regulation to the various recommendations. of the sector. Many related to the Passenger Rail Safety Issues importance of co-operation between State Rail has pro-actively supported CityRail the rail agencies. They included: all persons affected by the While public safety issues at stations • Increased emphasis on training, Glenbrook accident. The majority of continue to be dominated by slips using simulator technology and personal injury claims resulting from and falls, there have been continued drawing on relevant local and the accident have since been settled reductions in the number of these overseas experience; without the need for litigation and it incidents. Overall slips and falls were •Increased training and mentoring is State Rail’s intention to finalise down 8% on 1999-2000, whilst falls support for new drivers; all claims as soon as possible. in the gap between train/platform •Fitting trains with data loggers; Working with other rail agencies decreased by 13% and have • Ensuring protection for trackside Enormous emphasis has been decreased by 26% since 1998-1999. workers; placed on co-operation with the •Rewriting the safeworking units; These reductions have been aided other rail agencies. State Rail is • Improving communications by a State Rail/Rail Infrastructure engaged in several joint committees technology and protocols; Corporation program to minimise and projects with them. • Rationalising network control and the horizontal gap between trains and improving the technology used platform. At 30 June 2001, 42 platform by network control; gap reductions had been completed, making a total of 73 modified platform edges to date. Further survey and design work is in progress.
17 The Year in Review
Trespass and suicide fatalities also Reported security incidents against Employee Safety continued to be reduced. State Rail persons increased in 2000-2001 To ensure the highest possible continued work with the Rail to an average of 193 incidents per performance in Occupational Health Infrastructure Corporation on month, compared with 132 per and Safety (OHS), State Rail’s reduction strategies, as well as month in the previous year. The procedures are being consolidated working on safety at level crossings increase is a result of improved into an overall Safety Management following the tragic incident at security incident reporting due to System, ranging from a peak policy Gerogery on 22 January 2001 security initiatives on stations and through to safety standards, divisional in which five youths were killed. trains (eg CCTV). These provide safety procedures and workplace staff with the means of identifying safe work method statements. The The Crime Prevention Through to Police offenders involved in crimes aim is to ensure comprehensive Environmental Design initiative has in State Rail environs. Requests from coverage of all OHS requirements involved major works throughout the Police for CCTV imagery have also and a clear commitment and network to improve passenger safety identified a number of offences understanding by management and lower the incidence of crime and against the person that had and all members of staff. vandalism in and around State Rail previously been reported to Police property. All stations have had Following extensive consultation, only. The recording of these on lighting upgrades and Closed Circuit State Rail also revised its Health State Rail’s intelligence system has Television (CCTV) has now been and Safety Policy. The Policy was increased the parity between State installed at 302 stations. Some 5,200 endorsed by the Board and Rail and Police figures for these CCTV cameras are recording digitally approved by the Acting Chief specific offences. and are remotely monitored, seven Executive. Copies were produced days a week. In addition to these crime prevention for endorsement by all Level 2 measures State Rail has placed Managers and, in turn, by all their security guards on all trains from direct Managers. The Policy shall be 7pm; they remain until the last accessible by all employees. It has service or 3am. Security guards have also been incorporated into the also been placed on trains with induction training courses for all identified security problems between new employees. 2pm and 7pm on weekdays. Security Audits are regularly conducted to guards patrol stations regularly. monitor the performance of the During 2000-2001 a Vandalism Task Safety Management System based Force was trialed comprising several on the elements of AS 4292, State Rail staff with special constable AS 4801, the Rail Safety Act (1993) powers. These staff work closely with and the Occupational Health and the Police to target vandals on trains, Safety Act (1983). stations and other areas. The Lost Time Injury Frequency Rate still remains higher than target. It is expected that with a continued emphasis on the Safety Management System that this figure will reduce during 2001-2002.
18 The Lost Time Injury Duration Rate in 2000-2001 was 7.4 days. This result represents an improvement on the 1999-2000 result of 8.9 days. The target set for 2000-2001 was 5.1 days. State Rail is confident that this downward trend will continue.
Lost Time Injury Frequency Rates (Lost time injuries per million hours worked)
Division 1999 2000 2001 Operations 76.0 62.5 84.1* Passenger Fleet Maintenance 55.4 40.4 39.0 CityRail Stations 29.8 30.4 21.7* Corporate Divisions 4.5 4.5 3.4 Countrylink 30.1 27.0 N/A* All State Rail 46.0 42.2 41.0
Duration Rates (Days)
Division 1999 2000 2001 Passenger Fleet Maintenance 11.1 8.7 9.2 CityRail Stations 11.7 7.4 8.8* Operations 8.8 9.6 6.3* Corporate Divisions 3.0 5.7 2.2 Countrylink 11.2 8.4 N/A* All State Rail 10.2 8.9 7.4
*NOTE: Following the One State Rail restructure, Countrylink Train Crew staff transferred to Operations (renamed Train and Crew Operations) and Countrylink Station staff transferred to CityRail Stations (renamed Station Operations).
Safety pic Safety pic
19 The Year in Review
2Preparations for 3Service Quality Since the opening of Stadium the Olympic and Australia, large scale ‘one-off’ CityRail On-time Running Paralympic Games special events have also been held During 2000-2001, CityRail achieved at Homebush Bay such as the State Years of Olympic planning paid off an average on-time running of Origin, NRL Grand Final and the when State Rail met the challenge performance for morning and Bledisloe Cup, which attracted a of delivering rail transport for the afternoon peak services of 89.9%, world record crowd of 107,000 Olympic and Paralympic Games below State Rail’s target of 92%. spectators. These have tested and exceeded all expectations. Specifically, 89.7% of peak CityRail’s ability to move significant During July, August and early suburban services arrived at their numbers of people over a short time September 2000, finishing touches destinations within three minutes to and from the venue eg: 40,000+ were made to infrastructure of the timetable, and 91% of peak people per hour at the completion improvements, security was Intercity services arrived within five of the game. Months of planning enhanced, signage and minutes of the timetable. and liaison with event organisers communications systems were and other stakeholders have paid All these figures represent an improved, staff training and briefing dividends on each occasion. improvement on 1999-2000. sessions peaked and command Airport Line and control structures were put in Countrylink On-time Running During the year, due to lower than place to handle the Olympic task Countrylink’s on-time running during anticipated patronage, the Airport 24 hours per day. 2000-2001 was well below its target, Link Company went into receivership. with 69.3% of its services arriving Detailed crowd management, State Rail is working in co-operation within 10 minutes of the timetable, operating and contingency plans with the Airport Link Company to compared with State Rail’s target of were provided to the Olympic Roads increase usage of the line. 90%. This can largely be attributed and Transport Authority (ORTA). to speed restrictions on the tracks. New and Proposed Extensions Communications protocols were to and Upgradings of the agreed with ORTA, the Olympic State Rail is working with the Rail Metropolitan Rail Network Co-ordination Authority and the Infrastructure Corporation to improve During 2000-2001, State Rail NSW Police. State Rail established Countrylink’s service by reducing the completed a detailed analysis the Rail Coordination Centre, which number of speed restrictions on all of current and future demand provided the focal point for rail data corridors. This scheme has delivered requirements and commenced collection and strategic decision a 10% improvement in on-time consideration of the system making during the Games. running from last year. The re-engining enhancements to support those of XPT Power Cars has also had a See page 32 for a report on State requirements. positive impact on the result. Rail’s successful delivery of the Studies were progressed to various Olympic and Paralympic Games CityRail Services for stages on the following infrastructure transport task. Special Events projects: Glenfield Junction Apart from the successful delivery of Upgrade, Macdonaldtown stabling the rail transport task for the Olympic and turnback, Padstow area and Paralympic Games, CityRail turnback, Blacktown stabling and continued to deliver successful duplication of the line between timetabled services for special Marayong and Quakers Hill. events throughout 2000-2001 including New Year’s Eve, Federation Day, Australia Day, the Mardi Gras and the Royal Easter Show.
20 Further concept development was The Rail Infrastructure Corporation The program provides for the first undertaken for a range of major rail is delivering the following projects four car set to be tested in late 2001, infrastructure projects including: for State Rail: and introduced into service in the first half of 2002. The last four car set Parramatta Rail Link Dapto – Kiama Electrification is due to enter service in the first half State Rail was involved in studies for During May 2001 a major of 2003. the development of the new link with possession between Dapto and focus on demand analysis, operating Kiama was used to lower the track Rollingstock requirements and system wide through the Bombo tunnel and Other significant rollingstock implications. enlarge the Croom tunnel. Overhead projects/developments in 2000-2001 wiring and signalling equipment was included: NorthWest Rail Link installed between Dapto and Kiama, • Contract awarded for installation Corridor study undertaken with and it is anticipated that electric of central door locking mechanisms the Rail Infrastructure Corporation services from Sydney to Kiama will on Hunter Valley 620 class rail cars. and Department of Transport to commence towards the end of 2001. •Contracts awarded for installation determine the preferred alignment. of trip gear on XPT, Xplorers and East Hills Amplification Bondi Turnback Endeavour Fleet. XPTs are The second stage of the It was announced in May 2001 that scheduled for completion in April construction of East Hills investigations would proceed for 2002, Endeavour and Xplorers Amplification saw the progression turnback facilities to increase the are scheduled for completion by of the construction of two new tracks capacity of the Eastern Suburbs and August 2001. from Turrella to Kingsgrove, one Illawarra Lines to allow the operation • Proposal to rebuild some existing each side of the existing two tracks of additional trains from the Illawarra. Endeavour trains to Xplorer for the express East Hills Line standard long-distance trains services. University of Western Sydney to enable re-introduction of the and Glendale Stations These works will permit express Broken Hill/Sydney service. Progressing concept plans with trains to and from Campbelltown • In March 2001, the State Department of Transport for two and Macarthur to overtake slower Government announced the new stations and interchanges to local services to and from East Hills, procurement of: accommodate growth and serve and facilitate a better mix of services – 14 purpose built passenger new markets. by separating fast and local trains carriages to replace the 620 Oak Flats Interchange over this section of the line. and 720 class carriages to Shellharbour Council granted Construction of noise barriers along improve services between development approval for a new much of the route will reduce noise Newcastle, Telarah, Scone and station and interchange at Oak Flats at nearby residences. Dungog. The first two carriages on the South Coast. are scheduled to begin service Millennium Train in late 2004; Accessible Transport State Rail’s contract for the design, – 40 new outer suburban State Rail reviewed priority for construction and maintenance of the carriages to enable rail services investment in station access Millennium Train with EDI Rail was to meet the growth in areas upgrades. signed on 8 October 1998. such as Central Coast, lower During 2000-2001, the design of Blue Mountains and Illawarra the cars was largely completed and region. Initial capital cost manufacture commenced at Cardiff. estimates are $120 million, At 30 June 2001, over 20 carriage with design and documentation bodies had been completed and scheduled to commence eight cars were under internal fit out, in 2002-2003, and with the first two cars advanced to – 60 additional suburban the point where initial static testing carriages for the suburban area. could commence in early August.
21 The Year in Review
• Refurbishment of 36 non-Tangara PFM is required to provide electric In early 2001, PFM’s rollingstock suburban carriages began. This and diesel fleets at an availability presentation group was further is scheduled for completion in and reliability suitable for the restructured to better deliver on-train August 2001. operation of the CityRail and cleaning at turnaround locations, •Following the findings of the Countrylink timetables. The present faster attention to graffiti removal McInerney Inquiry into the availability required to meet and improved supervision. Glenbrook accident: operating timetable is 88% of cars Vandalism and graffiti are major –Train radio systems will be available for peak services. PFM contributors to fleet maintenance fitted to the entire diesel fleet has consistently achieved reliability activities. The cost of repair due to provide the same targets during 2000-2001. to vandalism and removal of graffitti communication facility as A major challenge for PFM was on trains exceeds $3m per year. electric passenger trains. to supply cars at 96% and 94% – data loggers are being installed Fencing and security patrols in availability to meet the Olympic and in all trains. Installation of data rail yards and on trains have been Paralympic programs respectively. loggers on the Intercity cars improved and increased to deter To achieve this, a special maintenance is planned for completion by vandals. In addition some trains program was devised and July 2001. Installation in the have been equipped with CCTV introduced to prepare the fleet for suburban Tanagra and non- cameras to target particular services the successful delivery of train Tangara trains will commence or corridors where intelligence services over this period. in 2001-2002. suggests the greatest problems exist. • Programs have been put in place During August 2000 a review was To ensure minor faults which might to improve diesel fleet reliability undertaken which examined the prevent a train entering service including the upgrading of battery maintenance scope and frequency from rail yards in the morning are chargers and engine control of the electric fleet. This resulted in attended to, additional staff have systems on Xplorer and agrant from the NSW Government been approved to ensure almost Endeavour trains. to fund a revised Level III all trains are inspected daily by • Countrylink XPT Power Cars are maintenance initiative, which will maintenance staff. This initiative undergoing a $23m engine deliver higher fleet availability, grew from Olympic and Paralympic upgrading and re-wiring program improved presentation and Games programs when maintenance to improve reliability which is better reliability. scheduled for completion in staff operated as mobile teams to December 2001. Programs have Train Presentation attend to minor problems. Train Presentation is a major activity also been implemented to improve Twenty apprentices were recruited of PFM and is separated from the air brake systems, traction motors in 2000-2001; 10 vehicle builder daily maintenance function to ensure and cooling systems. trimmers, 5 electrical mechanics specific problems associated with and 5 fitter machinists. PFM has Improving Train Maintenance train cleaning and presentation are an ongoing Mentoring Program in Passenger Fleet Maintenance (PFM) addressed. is a division of State Rail established place for apprentices. to manage the repair, maintenance Cleaning performance continued to and cleaning of CityRail and improve in the 2000-2001 financial Countrylink’s passenger fleet. year following reforms established The division is also responsible for in 1999-2000. Improvements were the rail recovery unit operating within demonstrated with each train State Rail. receiving a major (heavy) clean every 30 days; daily cleans overnight at Maintenance Centres and stabling yards; and on-train cleaning continuing to improve the condition of trains going into the afternoon peak services.
22 CityRail Ticketing CityRail Station Upgrades • Additional CCTV works at 24 During 2000-2001 CityRail Ticketing There are 26 station access Department of Transport Bus Rail undertook one of its largest system upgrades to be substantially Interchanges and car parks were enhancement/upgrade programs commenced or completed by due for completion in August 2001; since the introduction of automatic June 2003. Of these, Caringbah, • Lighting upgrades at all 306 ticketing in 1993. As well as meeting Katoomba, Engadine, Allawah and stations and approximately changes to business needs such as Regents Park stations are underway. 90 designated car parks and the introduction of the GST, CityRail The remainder are in various stages Bus Rail Interchanges; and Ticketing also delivered on several of design and specific detailed •Installation of plasma screens capital works projects. programs are being developed to at 15 CBD and major Olympic • New Ticket Vending Machine ensure that the programs are corridor stations. technology recently developed for delivered on time. Improvements to Security Airport Line stations was used as Special Olympic Games Projects and Revenue Protection the platform for upgrading all 321 A range of capital works projects In 2000-2001 these included: TVM1s, including the introduction were undertaken at stations to • Extended use of CCTV (with of touch screens. All 463 TVMs, ensure successful train running associated improved station both large (TVM1) and small TVMs and people management during lighting) and the establishment (TVM2/3) were enhanced with the the Olympic and Paralympic Games of 17 Group Remote Monitoring latest in smartcard technology as and to improve State Rail’s corporate Location centres; a security monitoring device; image. These included: • Use of the Long Line Public •improvements to note handling • Major upgrades at Central, Address systems, particularly capabilities of TVMs (eg: the new Lidcombe, Bondi Junction, during disruptions; $5 note, approval of program to Liverpool, Ashfield and Penrith • Recruitment of an additional include $50 notes and alternative stations; 58 Revenue Protection Officers; orientation of notes); • Construction of new footbridges at • Successful implementation of •procurement of 87 additional Granville, Lidcombe and Concord revenue protection campaigns. electronic barriers, increasing West stations to enable more total number of State Rail owned Improvements to Public efficient interchange; electronic barriers by more Transport Integration • Extension and upgrading of than 15%; • The new Bus Interchange at Redfern overhead concourse • introduction of integrated Bondi Junction station; and and footbridge; overhead gate directional signage •A new DayTripper ticket was • Installation of new wayfinding at 19 major locations, and introduced in the Metropolitan signage at 27 stations; • introduction of a client server table area in association with the •Re-painting of 33 stations in manager for system data and State Transit Authority. new corporate colours; table loads. • Provision of temporary information booths at 7 stations; •Provision of temporary staff facilities or upgrading of existing facilities at 17 stations; • Commissioning of Long Line Public Address systems at 197 stations which have the prerequisite DVA and PA equipment;
23 The Year in Review
4Financial Overview Passenger revenue increased by • an increase in workers compensation $16.5 million or 3.2%. Continued of $17.7 million or 69.0% due to an State Rail’s operating surplus for growth in CityRail of $30.5 million increase in payroll, additional claims the year ended 30 June 2001 was including $23.5 million from the from prior years and changes to the $14.1 million. Olympic Games has, however, been actuarial assumption relating to The result included social program offset by reductions in Countrylink investment returns. funding and other Government revenue of $14.0 million or 21%. Non-payroll operating expenses contributions of $1,190.1 million, The main factor has been increased increased by $152.6 million or 15%. comprising: competition with the introduction of Significant changes included: • social program revenue new airline carriers into the domestic • increased assets written off or sold (Community Service Obligations) market with Countrylink discounting of $40.8 million with $15 million of $593.1 million, which covered fares in response to airline for Queanbeyan-Canberra line as $543.3 million for concession discounting. There has also been control was transferred to the ACT fares, other pricing support and reduced patronage. Countrylink government and the remainder non commercial operations for passenger journeys have decreased mainly due to an increased property normal levels of services and from 2.4 to 2.1 million or 12%. sales program. $49.8 million to cover the net cost There were reductions in other revenue • increased operating lease rentals of providing Olympic services; and categories but these were largely due and contract and general expenses • capital and other contributions to once off gains last year. Asset of $50.7 million or 6.0% including of $597.0 million, including disposal revenue returned to levels $38 million relating to the Sydney $404.8 million for capital grants, consistent with prior years, last year 2000 Olympic Games. $123.6 million for major periodic being increased by $16.7 million •increased capital grants to Rail maintenance grants, $49.7 million for the value of a new station at Infrastructure Corporation (RIC) of redundancy funding, $18.1 St Leonards received as part of the of $56.8 million to $99.2 million. million to cover the servicing of pre price of a long term air space lease These grants are used to upgrade restructure (pre 1/7/96) debt and arrangement. Other revenue RIC’s infrastructure and result in $0.8 million for training grants. decreased by $6.6 million or 12.0% operational benefits for State Rail. Social program funding excluding with additional insurance claims of $14 Major projects in 2000-2001 included the Olympic and Paralympic Games million receivable last year in relation to $54 million for the amplification of increased by $79.0 million or 17% on damage sustained in the April 1999 the East Hills Line, and $34 million the previous year. Capital and other hail storm and other incidents. for the extension of the electrified Government contributions increased network from Dapto to Kiama. Payroll related costs increased by by $115.5 million. In the year, $79.9 $136.4 million or 23.0% due to: Significant balance sheet movements million of capital funds was sourced • an increase in direct payroll of during the year were: from the net proceeds of the sale $74.2 million or 17.2% which has • an increase in cash and other of surplus State Rail properties, with been the result of additional staff, investments of $118.8 million to the majority received in advance overtime and allowances for the $192.0 million, due to the receipt of of requirements. Olympic Games ($28.0 million), $64 million for future Parramatta Rail Substantial extra funding service improvement initiatives Link land purchases, combined with was provided for rail service and pay increases. the early receipt of land sales funding improvements including increased • an increase in employee entitlements for future capital expenditure and rollingstock maintenance, expansion of $48.1 million or 36.9%, largely due cash flow variations in the program. of infrastructure to improve State to the prior year being low due to •a decrease in property plant and Rail’s operational performance, changes in actuarial assumptions equipment of $115.7 million to safety-critical training, additional and $7 million of Olympic Games $4,958.7 million. There were $89 train cleaning, increased frontline related expenses. million of disposals including $70 staff at stations and establishment •a decrease in severance payments million of property sale write-offs of a Rail Coordination Centre. of $3.6 million or 39.3% due to a and $15 million for the transfer of reduced redundancy program control of the Queanbeyan-Canberra from 210 last year to 110 in the line to the ACT government. current year.
24 5 Environmental Performance Waste Management Environmental Procurement Preliminary audits of CityRail stations State Rail has been looking at Environmental Management in late 2000 indicated that about increasing the proportion of products State Rail is continuing to implement 60% of the waste generated by the that it purchases with recycled-content its Environmental Management public at train stations is made up materials and other environmental System (EMS). Work has focused of materials that can be recycled. features. Environmentally preferred on developing environmental Under State Rail’s Public Place alternatives to some of State Rail’s procedures and work instructions Recycling Program, the organisation key products are currently being to assist staff to minimise pollution. is investigating the potential for investigated including office paper, In addition, an updated environmental providing platform recycling to publications paper, bathroom paper awareness training package has passengers at train stations. products, cleaning products, re- been developed for staff and will manufactured toner cartridges and be rolled out in 2001-2002. As part of the program, State Rail environmentally friendly stationery. trialed recycling bins for two weeks Internal environmental audits were over the 2001 Royal Easter Show Noise Management undertaken at the six Passenger at Strathfield, Lidcombe, Parramatta State Rail continues to monitor noise Fleet Maintenance centres in 2001. and Blacktown stations with positive emissions from its operations and These identified several areas results. Preparations are currently implement noise reduction programs where environmental improvements underway for a second trial of where appropriate. are required and environmental platform recycling, where CityRail management plans have been Management of contaminated land will be trialing a second design developed for incorporation into State Rail is one of the largest of bins at Central and Stanmore the EMS. Further audits in other landholders in New South Wales. stations for 6-8 weeks in 2001-2002. operational business units are Due to industrial practices planned for 2001-2002. In May 2001, State Rail provided associated with railway operations the NSW Environment Protection over the past 100 years or so, some Environmental requirements have Authority with its bi-annual Waste of this land may be contaminated also been incorporated into standard Reduction and Purchasing Policy to varying degrees. Therefore project briefs and contract (WRAPP) report. WRAPP requires land contamination represents a specifications to ensure that agencies to minimise and recycle significant risk and liability to State contractors are adopting appropriate their waste and purchase recycled- Rail’s current and future operations. environmental practices when content products. The report found A program is underway to actively working for State Rail. that further initiatives can be identify, investigate and treat Key Environmental Programs implemented within State Rail to contaminated land. reduce office waste and promote the An Environmental Project Unit Energy Management procurement of recycled paper and provides project directorship of State Rail continues to carry out other stationery products. energy saving initiatives as required the contaminated land management by the Government’s Energy The new State Rail Head Office at program. The objective is to Management Policy (GEMP). An Lee Street, Chippendale has been minimise environmental risk and initial review of energy management established as the model waste ensure environmental due diligence within State Rail was completed in management building for other within the framework of NSW and 2000 which identified several key State Rail offices. The building has Commonwealth legislation. projects to be implemented in the established recycling facilities for In 2000-2001, approximately next financial year. Projects are being paper, cardboard, toner cartridges, $2 million was spent on scoped which will aim to reduce aluminium cans and PET plastic. contaminated land management. energy use in State Rail’s buildings This included over 100 separate including offices, stations and environmental investigations in both maintenance depots. State Rail urban and rural areas of the State, provides annual energy usage ranging from larger investigation figures to the Department of Energy programs such as the Sydenham as required by the GEMP. XPT Maintenance Centre to smaller rural projects statewide.
25 The Year in Review
6Human Resources The project aimed to ensure that all In addition, the Frontline staff were provided with information Management Initiative program HR Policy and Equity regarding the exemption and the is developing the management In addition to the provision of sound, rationale for its implementation as skills in 1,200 of our frontline staff, meaningful and contemporary well as providing a safe, harassment- providing them with further career specialist human resources (HR) free workplace for the new (and opportunities. Frontline supervisors advice to all levels of State Rail, the existing) female employees. and maintainers link their training HR Policy and Equity area’s major and development opportunities task for 2000-2001 was to rewrite the Industrial Relations to key competencies such as HR Policy Manual, ensuring it met State Rail has negotiated and managing people, resources and State Rail’s, Government’s and implemented 32 functional enterprise safety and best practice in systems legislative requirements. The policies agreements which cover all groups management and customer service. needed to be closely aligned with of employees up to 31 March 2002. State Rail’s strategic business In addition, separate three year The Management Development direction. The process incorporated agreements have recently been Initiative is a program that aligns four critical steps: negotiated for CityRail train crew senior and middle management •a review of all HR policies/ which will be put to ballot in July 2001. development to performance practices and an assessment outcomes and enables managers Over the last year State Rail has of their compliance with NSW to identify, in a Professional been involved in various industrial Government policy, existing Development Plan, the targeted issues with the rail unions. These industrial agreements, legislation training and development needs have been resolved under the and contemporary best practice that ensure integration of personal dispute settlement procedure and as principles; career development and enhanced a consequence, the time lost due to • the development of new draft performance outcomes. In December industrial disputation was limited to policies; 2000, 134 (65%) senior and middle one hour by approximately 60 staff. • consultation with key internal managers graduated from MDI and external stakeholders eg State Rail has put in place a Stage 1 with a Certificate III in HR manager, senior managers, consultative framework comprising Transport Leadership. unions/Labor Council; and management representatives, The Executive Development Program • endorsement by the Executive employee delegates and union is a new initiative underpinned by Management and State officials to promote good an executive capability framework. Rail Board. employer/employee relations and It enables senior managers to focus respond to issues raised in the The subsequent implementation on developing skills in executive workplace. This process is proving of the policies will be based on leadership though significant worthwhile and will continue an overall implementation plan. contributions to work-based projects. next year. Another major project was the Safety Management Training and Development application of the exemption granted System Training Through its Training and to State Rail under section 126 of Safety Management System training Development Unit, State Rail is the Anti Discrimination Act 1977 to was introduced in May 2000. All rail implementing nationally accredited, ensure 50% of recruits in operational safety workers who work under the quality assured, competency based areas were women. This required Rail Safety Act (1993) are now training and assessment for all staff State Rail to fulfil the conditions on required to attend training three in frontline and management roles. which the exception was granted. times per year to ensure the This ensures the rail industry This required State Rail to train all currency of their competencies achieves its business goals through operational staff and other State Rail and their capability to work in a the provision of high quality employees dealing with operational high risk operational environment. consulting and educational services. staff, and develop and implement relevant policies and procedures.
26 In April 2001, the Department of During 2000-2001, State Rail 8Improving Access Transport advised State Rail that achieved a 16.2% reduction in State Rail is currently working to it had met the requirements to be number of Treasury funded claims, produce a Disability Action Plan appointed an authorised agent of representing a 9% reduction in to be finalised by the end of 2001. the Department for the purpose the value of the “tail”. Other Consultation with peak disability and of granting Certificates of achievements included 100% cost transport user groups as well as the Competency to State Rail’s rail recovery of administrative overheads. Minister for Transport’s Accessible safety workers. The return to work rate of injured Transport Forum is integral to the employees at six weeks was 85.6% Simulation Project development of the Action Plan. and at six months 96.3%. In March 2001 the State Rail Board State Rail has engaged a Project endorsed State Rail’s proposed Manager to develop, manage and simulation improvement project. 7Corporate Legal Services document its strategic approach In May expressions of interest were to disability access issues and the called for the development of two Corporate Legal Services staff were Disability Action Plan. State Rail’s new virtual reality training facilities extensively involved in State Rail’s Plan will address the Disability as well as the upgrade of two representation at the Special Access Standards for Public existing driver training simulators. Commission of Inquiry into the Transport (DDS) in three key areas: In developing the specifications Glenbrook Rail Accident and have station accessibility, rollingstock for the project State Rail has participated in a number of initiatives design and communications. been involved in the testing and between State Rail and Rail development of simulator technology Infrastructure Corporation to improve The strategies developed in these at Melbourne’s RMIT University. coordination of rail services in NSW. areas will form the basis for State Rail’s Disability Action Plan and It is envisaged that within 12 to The division has played a key role a position for advocacy within the 24 months the simulator will have in assisting State Rail’s development Federal Rail Modal Sub-Committee. computer generated environments of strategies to comply with including large underground stations Commonwealth and NSW disability Station Accessibility like St James, complex train yards legislation and environmental CityRail like Flemington, level crossings, compliance. Corporate Legal The following initiatives have been small stations and intercity and Services has ensured that key undertaken by CityRail: metropolitan routes. legislative changes such as new • 46 stations fully accessible Occupational Health and Safety RailCover to passengers in wheelchairs. legislation and amendments to RailCover is the organisational Afurther 5 stations are to be the Transport Administration Act unit responsible for administering upgraded to full access in 2001. 1988 are understood within the workers compensation insurance, • Boarding procedures for organisation. It has also facilitated including the processing and passengers in wheelchairs the preparation of modern, project administration of claims and introduced in 2000 were further specific documentation to assist liabilities incurred for the current, refined. in project delivery. and its predecessor, organisations. •A Working Group was established It is also responsible for overseeing to consult with peak disability the operation of State Rail’s Injury groups and internal stakeholders Management Program to ensure to develop effective and reliable compliance with statutory boarding procedures for responsibilities and support passengers in wheelchairs. of injured employees.
27 The Year in Review
Future access initiatives planned for 9Communications and Along with other organisations stations include: Marketing State Rail enjoyed a boost in • Development of an Disability advertising revenue through its The need to enhance State Rail’s Access Management Plan for contract with Australian Posters, internal and external Station Operations. due to increased Olympic Games communications was recognised • Enhancement packages with a advertising expenditure. during the last financial year as range of access features that may the organisation commenced its Countrylink Marketing include some or all of the following focus on Olympic preparations. Countrylink enjoyed significant are planned for selected stations: The Corporate Communications combined rail/accommodation sales – warning tactiles; division was established, building success through its partnership with – colour contrasting on on the original Public Affairs and Canberra’s Premier Hotel Group, the obstructions; Government Relations Units to National Gallery’s ‘Monet & Japan’ – colour contrasting strips on the incorporate Passenger Information exhibition and the National Museum leading edge of steps, and and Customer Relations and of Australia. – additional features for specific Communications. disability groups. Countrylink commissioned its Following the One State Rail second Customer Satisfaction A major project completed in restructure the division merged Survey in November 2000 and 2000-2001 was the development CityRail and Countrylink marketing, realised a marked improvement and distribution of the ‘Accessing public affairs, community and in the overall level of satisfaction. CityRail’ brochure and network map customer relations functions to form Major factors contributing to detailing accessible features, in the Communications & Marketing dissatisfaction were still apparent close consultation with disability Division. The synergy created by and are being addressed. groups. uniting these specialist An encouraging result was the Countrylink communications functions into the improvement in customer Of Countrylink’s 62 stations, 61 one division has strengthened the satisfaction with onboard staff are accessible via level access or exchange and delivery of information service. This is a direct result of the a ramp suitable for a wheelchair. to all stakeholders including staff, investment in onboard staff training. Guide/hearing dogs are customers, local and state Media accommodated on board. governments, business and private The Media unit has coordinated sectors and the wider community numerous public announcements including schools, commuter this year including additional rail councils, disability and other special funding, major capital works user groups. projects, the roll-out of 5,200 CCTV CityRail Marketing cameras, community awareness The Marketing unit made a significant programs on fare evasion, security contribution to State Rail’s operations targeting graffiti and preparedness for the Olympic and vandalism and improvements to Paralympic Games. It oversaw the on-time running. Working closely with design and content of the new ORTA, State Rail’s publicity strategy CityRail signage system on 26 during the Olympic Games proved stations; oversaw the design and a communications success. content of Olympic timetables; implemented the Olympic overlay signing program and designed and implemented the Olympic Network map, and contributed to the design of the new corporate colour palette for CityRail stations.
28 Communications • Major Projects: All major projects A number of new initiatives have During the year the Communications have included working with other been introduced in 2000-2001 unit coordinated the Rail Government and private sector to improve the management Ambassador staff recognition organisations to promote of complaints. These include: program, a legacy from the Olympic awareness campaigns that •the development of one database Games. It also wrote customer support our joint responsibilities for tracking and monitoring behavioural messages for the particularly with regard to safety, feedback from customers; Olympic Games timetable. The cleanliness and the environment. • setting standards for responding unit managed the production Examples include school safety to customer complaints; and, of printed material for other divisions and revenue protection campaigns. • comprehensive trend analysis of and established State Rail’s new • Community Relations: Staff have customer feedback for planning branding and identity. The unit also assisted and supported other purposes. coordinated the communications divisions with sensitive issues Freedom of Information and marketing strategies for major concerning the local community, The Freedom of Information Officer possessions, eg. the South Coast councils and other stakeholders moved to Communications and electrification. regarding environmental issues Marketing from Corporate Legal (eg contaminated soil sites, noise Passenger Information Services in June 2001. pollution issues), disability issues Significantly, Passenger Information (eg access and station upgrades) is now staffed 24 hours a day, and customer complaints handing. 7 days a week. During 2000-2001 the unit focused on improving the Customer Relations timeliness of messages to guards, The newly established Customer stations and the media. Messages Relations Unit aims to improve the to the Transport Infoline have been capacity of State Rail to respond more timely, and the unit is starting to enquiries, suggestions, complaints to utilise some of the technologies and compliments from customers. available at the Infoline such as The unit manages the flow of voice recordings during disruptions feedback that comes to State Rail and real time website updates on the from customers and the wider CityRail and 131 500 websites. There community. has been continuous improvement to This feedback comes through the dissemination of service changes different avenues such as: and trackwork information. • 131 500 Call Centre – which Community Relations provides approximately 17,000 The Community Relations unit pieces of feedback for State Rail assists many local and regional to consider each year; events to enhance State Rail’s profile •written correspondence directly in the community. These include: to CityRail or Countrylink; and, • Special Events/Launches: • letters to the Minister of Transport, The Santa Train, Celebration of Department of Transport, State 75 Years of Electric Trains and MPs and local government. Bandaged Bear Day are examples On occasion State Rail works closely of events State Rail has helped with the NSW Ombudsman. co-ordinate to support local communities and charities;
29 The Year in Review
10 Strategic Projects The division also focused on the 12 Business Services upgrading of electronic security The Strategic Projects Unit was The One State Rail restructure facilities at 302 CityRail stations, formed when the Olympic signalled the introduction of the car parks and bus interchanges Coordination Unit closed in January delivery of corporate services in with initial implementation of Closed 2001. Its purpose is to coordinate a new way through the shared Circuit Television and video facilities. the delivery of projects which are services concept. The rail industry Implementing plasma screen of significance to State Rail’s will derive increased productivity passenger information systems customers and require input from through sharing overheads, systems on major CityRail stations was also the rail entities. development costs and the removal ahigh priority. of duplication. This will allow divisions In 2000-2001 the Strategic Projects Developing major business systems to concentrate on their core businesses Unit coordinated the development for train operations including train with a stronger customer focus. and implementation of the CityRail crewing and timetable automation Customer Service Commitment and A Shared Services Project Team was began and the division participated the design of a proposed timetable established to manage the introduction in the specification and tender based on principles used during the of this concept. preparation for an integrated Olympic Games. ticketing system for Sydney transport. The team is assisted in its role by a Shared Services Steering Committee The IT&T Division also initiated work which has representatives of the 11 Information Technology on a train operations management Project Team, State Rail, Rail & Telecommunications system that will provide early visibility Infrastructure Corporation and of train location in the CityRail principal unions. This committee The Information Technology network. It also prepared the design commenced its work in March 2001. & Telecommunications (IT&T) and specification for a new disaster On implementation of the concept Division formulates State Rail’s recovery centre and initiated its a new framework for management telecommunication and IT strategies, construction, as well as establishing of change will be established. policies and standards and oversees the IT&T infrastructure for both the and directs major State Rail IT&T recovery centre and the Rail functions. These include system Coordination Centre. design, development, implementation, operations, planning and commercial operation, in order to provide quality and consistency to the organisation.
During 2000-2001, the division achieved 100% Year 2000 compliance of all safety, reliability and revenue generating systems. It also reduced the number of application technologies used across State Rail and standardised PC and enterprise hardware and operating systems.
30 Delivering the Sydney 2000 Olympic and Paralympic Games Transport Task
31 13 Delivering the Sydney 2000 Olympic and Paralympic Games Transport Task
“Olympic commuters have sung the praises of rail staff, both on the trains and at the stations, for their helpful and efficient manner and for their friendly demeanour. The careful arrangement of pedestrian traffic flows at stations – at Central station most notably – has also resulted in swift and painless progress through ticket barriers – for which passengers have been grateful... Today, the employees of CityRail, the people who have manned ticket booths, operated checkpoints, directed streams of travellers unfamiliar with our city, dealt with a thousand different problems every day, may take a bow.”
Daily Telegraph “Prophets of doom got it all wrong” editorial 23 September, 2000
“I know who should get the 2008 Games. Sydney. Also 2012. And 2016. And 2020 through 3000. Sydney... This is the single most beautiful city in the world. Paris looks like Lubbock, Texas, compared to this... And the way it works! Great,
gleaming silver trains come every two minutes to whisk you to great, gleaming Top: Then Coordinator General of Rail, Ron Christie. new train stations, where great, gleaming Sydney volunteers practically pick you Above: Then Chief Executive, Simon Lane. up and fireman’s carry you to the great, gleaming stadiums...”
Sports Illustrated (US) 18 September, 2000
32 From left: ROVERS prepare for the Olympic Volunteers’ street parade. • Trains were subject to a rigorous maintenance program. • Peak time at Olympic Park station. • Danielle Gibson and Denise Fields, family of employee Sherri Fields, volunteered to assist. Maggie Gibson, aged 3, wasn’t quite old enough to help.
The experience was unique. During preparations for both the Olympic and Paralympic Games no one could really visualise the Olympic crowds and the cross movement of people going to and from events at the same time as commuter peaks. Demand data were understood, risks were identified and staff gained experience in dealing with crowds every peak hour and at major events, but there is nothing like the Olympic Games. The plans worked because they were monitored and adjusted throughout the Games, and were The Olympic and Paralympic Although CityRail carried smaller well resourced. Games task was massive numbers during the Paralympic The Sydney 2000 Olympic Games Games, the task was challenging Factors considered integral to presented the biggest passenger due to the complexity of arranging State Rail’s success include: transport task ever undertaken. rail travel for school groups and • Strong and visible leadership of CityRail ran services 24 hours a day people with special needs while the then Chief Executive Simon for 19 days and almost 30 million maintaining normal peak services for Lane, the then Chief Operations people caught trains, compared to regular commuters. School groups Manager Arthur Smith and the 14 million people in a similar period were directed to less crowded trains then Manager of Olympic outside the Games. and CityRail Ambassadors escorted Coordination Margaret Brazel. them on their journeys. • Strong relationships with other While most events were located agencies and integrated plans. at Olympic Park at Homebush Bay, During both the Olympic and State Rail worked closely with 13.5 kilometres from the city centre, Paralympic Games, Sydneysiders Olympic Roads & Transport venues also operated in other parts required transport to and from work Authority, the Olympic Coordination of the metropolitan area at Darling and visitors and holiday makers Authority, the Rail Access Harbour, Moore Park, Bondi Beach, used trains and buses to travel Corporation, RAC’s main contractor, Ryde, Bankstown, Cecil Park, around Sydney and its environs. Rail Services Australia and the Horsley Park, Fairfield City Farm, People were encouraged to use Olympic Security Command Centre. Blacktown and Penrith. public transport and did so in The then Coordinator General record numbers. Six million spectators, 80,000 of Rail, Ron Christie, drew the accredited workers and volunteers, agencies together. 17,100 athletes and team officials, • Established processes were in 3,800 Olympic Family officials, place. A decision was taken to 2,500 technical officials and 17,200 strengthen systems rather than accredited media representatives change them for the Olympic required transport to sporting venues Games. No major structural changes during the Olympic Games. CityRail were made because of the Olympic transported the majority of and Paralympic Games. spectators and workers. 33 The Year in Review
•State Rail recruited more staff and • The Olympic timetable was and integrated transport thoroughly trained all personnel. resilient and met customer needs. communications during the Games. For example, the crewing workforce Preliminary planning on it began • Staff were briefed on procedures was increased by 219 drivers and in 1997. It was built to be as for assisting people in 396 guards. In 2000, Australian Rail robust as possible to minimise wheelchairs. On 28 October 2000 Training (State Rail’s staff training the impact of incidents and speed staff at Olympic Park station college) trained over 8,000 staff. up recovery. CityRail’s May 2001 assisted 745 people in • Staff were well briefed, morale timetable had 2,700 daily weekday wheelchairs on and off trains. was high and most were actively services and 2,092 daily weekend Some of the benefits of State Rail’s involved in the task. The Rail Tram services; during the Olympic work during the Olympic and and Bus Union and the Australian timetable 3,529 services operated Paralympic period are: Services Union agreed to the daily, 24 hours per day. • world wide recognition of the reassignment of office staff to • Service reliability was at a record organisation’s contribution to customer service roles and the high during the Olympic Games, the success of the Games; use of casual staff in cleaning, with peak on-time running •improved customer station and customer service jobs. averaging 97.3% over the 19 days communications through the • The successful ROVERS (Rail of the Olympic timetable. While provision of real time passenger Olympic Volunteers) program. journey times were longer because information; Volunteers from all over State Rail of the extra dwell times, the trains • experience in planning and were called for in 1998 to become ran on time. Extra staff were placed delivery of large scale events; Olympic ROVERS. During the on busy platforms to assist with •improved signage; and Games, non-operational staff who loading and flagging off trains. • history of significant passenger were not already working on the • High fleet utilisation rate. The demand and movement providing Olympic transport task volunteered Olympic fleet plan was first tested a forecasting database. for crowd management duties at during the 16 day Royal Easter major events. Relatives and friends Show in 1998. By scheduling Following the success of the of employees were also offered an heavy maintenance before a major Olympic and Paralympic Games rail opportunity to assist and 405 filled event, carrying out running repairs transport, State Rail made the casual jobs during the Games. during the event, then ramping up decision to retain additional staff In addition, other rail entities and maintenance after the event, a fleet recruited to the key areas of train government departments supplied utilisation rate of over 95% was crewing, station operations and fleet volunteers. achieved. Car kilometres increased cleaning. The Rail Coordination • The Rail Coordination Centre from 700,903 per day to 1,050,000 Centre continues to operate on (RCC), which was established per day during the Olympic a24hour basis and additional prior to the Games to strengthen timetable. Thirteen managers and resources are used to assist with command and control and set 554 cleaners kept the trains free of train loading during peak periods. up a centralised data collection litter and maintained a satisfactory The principles used in designing the centre. Cross functional level of cleanliness. Olympic Games timetable are being information was shared and •Messages shaped the public’s applied in future timetable design. problems were quickly addressed. behaviour. During the Olympic and All divisions/organisations which Paralympic Games, all Corporate contribute to running and Communications staff worked on maintaining the rail system a 24-hour roster alongside their were represented in the RCC. operational colleagues in the Rail It was staffed 24 hours a day. Coordination Centre and Passenger • Infrastructure was upgraded to Information. In addition, they were facilitate train operations and rostered to work with State Rail’s crowd management. Some of the external stakeholders in the projects (detailed on page 23) Transport Operations Centre and were Olympic specific but most the Main Press Centre at Olympic were long term investments in Park. This ensured the successful Sydney’s transport system. delivery of effective, targeted
34 CityRail
35 Countrylink
Coach Services Rail Services
To Brisbane Tweed Heads MURWILLUMBAH
Mullumbimby Kyogle BYRON BAY Lennox Head CASINO LISMORE Ballina Tenterfield Evans Head
Lightning Ridge Moree Warialda Deepwater Maclean Yamba Delungra Jackadgery Gravesend Mt Russell Dundee Glen Innes GRAFTON Bingara Inverell Brewarrina Bellata CITY Walgett Glencoe Bourke Burren Junction Wee Waa Cobbadah Guyra Narrabri Barraba COFFS HARBOUR Sawtell ARMIDALE Urunga Upper Manilla Byrock Nambucca Heads Boggabri Uralla Manilla Macksville Walcha Eungai Coonamble Baradine Attunga Coolabah Gunnedah Walcha Road TAMWORTH Kootingal KEMPSEY Girilambone Coonabarabran Gulargambone Cobar Werris Creek Nyngan Binnaway Quirindi WAUCHOPE Port Macquarie Wilcannia Boppy Mtn Hermidale Willow Tree Warren Gilgandra Kendall Emmdale Murrurundi Coolah Nevertire Mendooran Wingham Trangie Craboon Junction TAREE BROKEN HILL Dunedoo Scone Gloucester Aberdeen DUBBO Forster/Tuncurry Narromine Muswellbrook Geurie Gulgong Stroud Road New South Wales Dungog Pacific Palms Menindee Tomingley Mudgee Bulahdelah WELLINGTON Lue Singleton Karuah Peak Hill Hawks Nest Stuart Town Rylstone Maitland Raymond Terrace Alectown Kandos Ivanhoe Euabalong West BROADMEADOW Bogan Gate Molong Ilford Condobolin Capertee PARKES Cudal ORANGE Ben Bullen Lake Cargelligo Portland Wyong Tullibigeal Forbes BATHURST Lithgow Eugowra GOSFORD BLA YNEY Tarana Ungarie Canowindra Mt Victoria Hornsby Oberon Woodstock Penrith PARRAMATTA Cowra West Wyalong Wyalong Grenfell STRATHFIELD SYDNEY Koorawatha Campbelltown Buronga Barmedman Yenda Binya Barellan Bendick Murrell GRIFFITH Beckom Mildura (Vic) Young Carrathool Ardlethan Mittagong Hay Whitton Ariah Park Stockinbingal WOLLONGONG Temora Bowral Robinvale Leeton Wallendbeen Darlington Pt Yanco COOTAMUNDRA Moss Vale Euston Grong Grong Harden Bundanoon YASS JUNCTION Balranald Narrandera GOULBURN Coolamon Junee Coolac Yass WAGGA WAGGA Gundagai Tarago Lockhart Bungendore Urana Adelong Tumut CANBERRA Jerilderie The Rock Queanbeyan Victoria Deniliquin Henty Batlow Finley Berrigan Culcairn Michelago Tocumwal Barooga Tumbarumba Cobram (Vic) Mulwala Bredbo Moama Yarrawonga (Vic)ic) Corowa ALBURY Cooma Echuca (Vic) Wangaratta (Vic)
Benalla (Vic) Nimmitabel Bega Bemboka Wolumla Merimbula To Melbourne (Vic) Bombala Pambula Eden
36 Contents
38 Statement of Financial Performance
39 Statement of Financial Position
40 Statement of Cash Flows
41 01 Summary of Accounting Policies
50 02 Revenues
50 03 Expenses State Rail Authority of New South Wales Financial Statements for 2000-2001 51 04 Cash
52 05 Receivables
53 06 Investments
53 07 Property, Plant and Equipment
56 08 Other Assets
58 09 Borrowings
58 10 Creditors
59 11 Provisions
61 12 Deferred Revenue
61 13 Reserves
61 14 Accumulated Funds
62 15 Expenditure Commitments
63 16 Contingent Liabilities
63 17 Financial Instruments
67 18 Legal Form
67 19 Principal Activities
67 20 Interest in Associate
67 Statement by Members of the Board
68 Independent Audit Report
37 Financial Statements
(Start of audited financial statements)
Statement of Financial Performance for the year ended 30 June 2001
Note 2000-01 1999-2000 $000 $000 Revenues 2 Passenger services 2.3 534 373 517 850 Social program funding 2.3 593 116 478 900 Capital and other Government contributions 2.1 596 961 481 512 Ancillary services to other NSW rail entities 2.3 82 717 81 688 Rents 29 477 30 416 Asset disposals 969 21 230 Interest 1 293 1 798 Other (non operating) 49 429 56 002 Total revenues from ordinary activities 1 888 335 1 669 396 Expenses 3 Payroll costs 505 677 431 481 Employee entitlements 3.2, 3.3 178 312 130 237 Severance payments 5 488 9 047 Workers’ compensation 43 273 25 590 Operating lease rentals (including rail access fees) 3.1 381 993 362 617 Contract and general expenses 398 135 366 800 Consultants 391 587 Depreciation 7.7 154 726 153 006 Assets written-off or sold 88 781 48 005 Inventory write downs or losses 37 0 Borrowing costs 3.1 16 847 13 412 Other financing expenses 264 1 152 Audit fees 3.1 397 353 Board members’ emoluments 243 232 Doubtful debts expense 500 371 Capital grants to Rail Infrastructure Corporation 99 216 42 372 Total expenses from ordinary activities 1 874 280 1 585 262 Net surplus from ordinary activities 14 055 84 134 Direct adjustments of equity Increase in Asset Revaluation Reserve 13 0 440 259 Derecognition of consumable spares inventories 14 0 33 106 Adoption of new capitalisation threshold for spares 14 0 37 657 Total direct adjustments of equity 0 511 022 Total non-owner changes in equity 13 14 055 595 156
The accompanying notes form an integral part of these financial statements.
38 Statement of Financial Position as at 30 June 2001
Note 30.6.2001 30.6.2000 $000 $000 Current assets Cash 4 16 566 32 293 Receivables 5 79 434 76 187 Investments 6 175 457 40 900 Inventories 1 851 2 203 Tax assets 689 0 Total current assets 273 997 151 583 Non-current assets Receivables 5 126 848 127 933 Property, plant and equipment 7 4 958 650 5 074 327 Other 8 2 165 2 429 Total non-current assets 5 087 663 5 204 689 Total assets 5 361 660 5 356 272
Current liabilities Borrowings 9 93 651 55 711 Creditors 10 187 949 220 058 Provisions 11 126 082 197 028 Tax liabilities 9 520 8 449 Total current liabilities 417 202 481 246 Non-current liabilities Borrowings 9 102 784 142 842 Provisions 11 714 128 626 074 Tax liabilities 2 422 2 567 To tal non-current liabilities 819 334 771 483 Total liabilities 1 236 536 1 252 729
Net assets 4 125 124 4 103 543
Equity Deferred revenue 12 46 197 51 159 Reserves 13 2 803 094 2 899 571 Accumulated funds 14 1 275 833 1 152 813 Total equity 4 125 124 4 103 543
The accompanying notes form an integral part of these financial statements.
39 Financial Statements
Statement of Cash Flows for the year ended 30 June 2001
Note 2000-01 1999-2000 $000 $000 Cash flows arising from operating activities Receipts from customers and others 847 917 656 463 Social program receipts from government 593 116 478 900 Interest received 1 293 1 798 Payments to suppliers, employees and others (1 660 509) (1 268 192) Payment of grants to Rail Infrastructure Corporation (80 977) (42 372) Borrowing costs (16 847) (13 296) Net cash used in operating activities 4.1 (316 007) (186 699) Cash flows arising from investing activities Property, plant and equipment acquisitions (183 779) (302 199) Plant and equipment disposals 969 4 530 Investments made (72) 0 Investments redeemed 0 48 Investment transferred to Rail Access Corporation 0 (19 993) Net cash used in investing activities (182 882) (317 614) Cash flows arising from financing activities Government contributions received 596 206 454 386 Funding for pre-1.7.1996 workers’ compensation 23 996 28 627 Borrowings obtained 0 86 632 Borrowings repaid (2 555) (77 271) Net cash provided by financing activities 617 647 492 374 Net increase (decrease) in cash held 118 758 (11 939) Cash at the beginning of the year 72 121 84 060 Cash at the end of the year 4.2 190 879 72 121
The accompanying notes form an integral part of these financial statements.
40 Notes to and forming part of the financial statements
1 Summary of Accounting 1.2 Consistency of The SRA Property Trust ceased Policies Accounting Policies to operate on 30 May 2000 and 1.1 Bases of Accounting The accounting policies adopted has been wound up. The financial statements have are consistent with those of the State Rail controlled the SRA been prepared as a general previous year. Property Trust by having the sole purpose financial report in During 1999-2000 the capacity to appoint, remove and accordance with Australian accounting policy for direct the trustee. Accounting Standards, other consumable spares was authoritative pronouncements As all of the Trust’s expenditure changed as a result of the of the Australian Accounting was paid directly by State Rail issuing of Treasury Circular Standards Board, Urgent Issues and all of the Trust’s assets NSWTC 00/13 Guidelines for Group consensus views, the were transferred to State Rail, the Capitalisation of Expenditure Public Finance and Audit Act consolidated financial in the NSW Public Sector. 1983, the Public Finance and statements of the economic Accumulated funds were Audit Regulation 2000, and entity comprising State Rail adjusted by $33.106m due to specific directions issued by Authority of New South Wales derecognition of consumable the Treasurer. (as parent entity) and SRA spares inventories; $37.657m Property Trust (as controlled Generally, the historical cost due to adoption of a qualitative entity) were not prepared for basis of accounting has been capitalisation threshold; and 1999-2000. Had they been adopted and the financial $36.219m to reduce the Asset prepared, the consolidated statements do not take into Revaluation Reserve for capital statements of the economic account changing money values spares reclassified as entity would have been identical or current valuations. However, consumable spares. to the financial statements of the most items of property, plant 1.3 Comparative Information parent entity. and equipment (and associated Where appropriate and depreciation expenses) are 1.4 Foreign Currency Translation practicable the previous year’s measured at their current value i) Translation comparative information has and certain employee entitlement A foreign currency contract been adjusted to conform with liabilities (and associated that specifies a fixed exchange the current year’s presentation. expenses) are measured at rate is recognised and initially their present value. See notes Changes to the income and translated into Australian 1.8 and 1.11. expenditure statement have currency using the specified been made to comply with the exchange rate. Any monetary The accrual and going concern revised Australian Accounting item outstanding under the bases of accounting have been Standard AAS 1 Statement of contract at reporting date is adopted in the preparation of Financial Performance. These also translated at that fixed the financial statements. affect the presentation of the exchange rate. Despite current liabilities items adjusted directly against exceeding current assets at equity and their comparative year end, State Rail’s continued amounts. operation and ability to pay its SRA Property Trust was debts are assured because the established on 1 September annual Appropriation Act was 1999 as an unincorporated passed before the end of the special purpose entity. Its year, allocating funds for the purpose was to purchase real government to purchase rail property on behalf of State Rail. services from State Rail during the ensuing year.
41 Financial Statements
Notes to and forming part of the financial statements
Any other foreign currency 1.5 Cash Expenditure on the acquisition, transaction is recognised For the purpose of the statement replacement or enhancement and initially translated into of cash flows, cash includes of property, plant and Australian currency using the cash on hand, highly liquid equipment is capitalised, spot rate at the date of the investments with short periods provided it exceeds the transaction. A monetary item to maturity which are readily capitalisation threshold or outstanding under a foreign convertible into cash on hand qualifies for recognition as currency contract (that does at the investor’s option and are a capital spare. Expenditure not specify a fixed exchange subject to an insignificant risk on the partial replacement rate) at any subsequent of changes in value, and of certain categories of reporting date is translated borrowings which are integral networked assets (such as at the spot rate at that date. to the cash management computer networks) is also function and which are not capitalised. Non-monetary items are not subject to a term facility. retranslated subsequent to Costs incurred on an item of See note 4. the initial recognition of the property, plant and equipment transaction. 1.6 Receivables subsequent to it being first put A provision is made for doubtful into use or held ready for use ii) Exchange differences debts. Receivables are are added to the asset’s An exchange difference monitored during the year and carrying value when and only arising in respect of a foreign bad debts are written off against when it is probable that future currency monetary item the provision when they are economic benefits, in excess directly attributable to the determined to be irrecoverable. of the originally assessed acquisition, construction or See note 5. standard of performance will production of an asset that arise. All other such costs necessarily takes a substantial 1.7 Investments are expensed in the reporting period of time to get ready for Investments are valued at cost period in which they are its intended use or sale, net which, because of the nature incurred. of the effects of any hedge of the investments, is also the of that monetary item, is market value. See note 6. The capitalisation threshold capitalised as part of the for a network of property, plant 1.8 Property, Plant and Equipment cost of that asset. and equipment items or for i) Recognition an individual (non-networked) An exchange difference arising An item of property, plant and item (other than a capital in relation to a hedge of a equipment is recognised as an spare) is $5000. A capital specific purchase or sale is, asset if it is controlled by State spare is only capitalised if to the extent that it arises up Rail, is expected to be used it is part of a pool of rotable to the date of the purchase for more than one year, is likely spares, primarily held for the or sale, deferred and included to produce future economic overhaul of the asset to which in the measurement of the benefits, and possesses a it relates, and significant purchase or sale. cost or other value that can enough to warrant being be measured reliably. Any other exchange difference individually tracked. is recognised as a revenue An item of property, plant Expenditure below the or expense in the reporting and equipment ceases to capitalisation threshold or period in which the exchange be recognised when it is not qualifying for recognition rate changes. disposed of or when it is as a capital spare is charged permanently withdrawn from to operating expenses. use and there are no probable future economic benefits from its disposal.
42 Notes to and forming part of the financial statements
ii) Valuation • Land or a cultural collection iii)Depreciation Property, plant and equipment (ie heritage) asset which Each item of property, plant purchased or constructed is would not be replaced upon and equipment (except land initially recorded at its cost deprival is valued and work in progress) is of acquisition. Property, plant at the greater of the net depreciated on a straight line and equipment acquired present value of future cash basis over its estimated useful under a finance lease is inflows therefrom and its life commencing when the initially recorded at the present current market selling price item is first put into use or held value of the minimum lease • Property, plant and ready for use. A capital spare payments. Property, plant equipment (other than land) is depreciated over the useful and equipment acquired by which would be replaced life of the asset or class of grant is initially recorded at upon deprival is valued assets to which it relates. fair value. at its written down An improvement or extension replacement cost of an existing depreciable Spares purchased specifically • Surplus property, plant and asset which becomes an for a particular asset, or a equipment is valued at its integral part of that asset class of assets, and which current market selling price. is depreciated over the would become redundant remaining useful life of if that asset or class was Revaluations are accounted that asset. retired or use of that asset or for by separately restating the class was discontinued, are gross amount and the related An item of property, plant and considered to form part of the accumulated depreciation of equipment acquired under a historical cost (or other value) each asset within the revalued finance lease is depreciated of that asset or class. class. on a straight line basis over the periods which are As the future economic Upon revaluation of a class of expected to benefit from the benefits embodied in property, property plant and equipment, item’s use. Where there is plant and equipment are not a net revaluation increment is reasonable assurance at the primarily dependent on those credited directly to the Asset beginning of the lease term assets’ ability to generate Revaluation Reserve for that that ownership of the item net cash inflows, no item of class and a net revaluation will be obtained at the end property, plant and equipment decrement is expensed, of the lease term, the item has been written down to its except that to the extent it is depreciated over its useful recoverable amount. reverses a previous increment life. Otherwise it is depreciated or decrement it is debited to Property plant and equipment over the lease term. See the Asset Revaluation Reserve is revalued at least once every note 1.10. or credited to revenue five years, on the following respectively. The cost of an improvement basis: to or on leasehold property is • Land which would be depreciated over the shorter replaced upon deprival is of the unexpired term of the valued at the greater of its lease or the estimated useful value in use and its current life of the improvement. market selling price
43 Financial Statements
Notes to and forming part of the financial statements
Depreciation rates are vi)Work in progress ii) Details of leasing reviewed at least annually, Work in progress comprises arrangements and adjusted if necessary, to expenditure on incomplete Various types of lease ensure they continue to reflect capital works. It also includes arrangement are in place. the most recent assessments expenditure on minor projects About one third of the of the useful lives of the completed in the last month rollingstock fleet has been respective assets, having of the financial year. obtained under complex sale regard to such factors as See note 7. and leaseback arrangements asset usage and the rate where State Rail is the lessee of technical and commercial 1.9 Borrowings under finance leases. However obsolescence. A borrowing is recognised the related lease liabilities after deducting any unamortised Depreciation methods are have been eliminated through discount from, or adding any reviewed at least annually, defeasance arrangements. unamortised premium to, its face and adjusted if necessary, Purchase options exist, value. Any discount or premium to ensure they continue to allowing the purchase of the is deferred and amortised over reflect the expected pattern leased rollingstock at the the term of the borrowing on of consumption or loss of end of the lease term. In some a straight line basis. future economic benefits. cases a lease renewal option The face value of all principal is available if the purchase Effects of any change in amounts falling due within option is not exercised. depreciation rate or method 12 months after the end of are recognised in the present The NSW rail network is used the year, and any unamortised and future years affected. by State Rail as lessee under discounts or premiums thereon, a ten-year, non-exclusive, non- iv)Disposals are recognised as current cancellable operating lease Upon disposal or retirement, liabilities. All other principal (access agreement). The lease the carrying amount of an amounts, and the related rental (access fee) is reviewed item of property, plant and unamortised discounts or annually. equipment is charged to premiums are recognised Assets Written Off and any as non-current liabilities. Certain Victorian and sale proceeds are credited See note 9. Queensland railways and to Asset Sales Revenue. Any stations are used by State Rail 1.10 Leases related revaluation increment as lessee under informal non- i) Classification remaining in the Asset exclusive operating leases Leases where the lessee Revaluation Reserve in respect (access agreements). assumes substantially all of the asset at the time of the risks and benefits of Coaches for rural passenger disposal is transferred to ownership of the leased services and buses for use accumulated funds. property are classified as during service disruptions v) Assets leased finance leases. Other leases are obtained under various Assets leased to lessees are are classified as operating operating leases. The rural recognised as property, plant leases. coaches are obtained under and equipment and the three- year non-cancellable associated rent is recognised leases, renewable at State as Rent Revenue on a basis Rail’s option for up to reflective of the pattern of two years. benefits provided by the leased asset.
44 Notes to and forming part of the financial statements
Some telecommunications Various operating leases have v) Sale and leaseback facilities are obtained under also been granted to other rail arrangements an 11-year non-cancellable operators giving them non- Where an asset is sold and operating lease. Additional, exclusive access to State Rail leased back under a finance contingent rentals may stations and trackwork. Such lease, any gain (or loss) on become payable or receivable leases generally cover a five the sale is deferred and in future years if the total year period and are terminable amortised as revenue cost of connecting locations by either party giving six (or expense) over the lease to the network varies from months’ notice. term. See note 12. a predetermined sum. iii) Finance leases 1.11 Employee Entitlements Motor vehicles are obtained Finance leases are capitalised Employee entitlements comprise under two- or three-year by the lessee. A lease asset wages and salaries, annual leave operating leases arising and liability equal to the (including annual leave loading), from sale and leaseback present value of the long service leave, arrangements. Rentals are minimum lease payments superannuation, pay in lieu of all contingent, being based are recognised as at the certain holidays worked (public on floating interest rates. beginning of the lease term. holidays, bank holidays and The discount rate used in picnic days), sick leave, Some office accommodation determining present value is maternity leave, adoption leave, is obtained under operating the interest rate implicit in the severance benefits, family leases, some resulting from lease. Any initial direct costs passes and retirement passes. sale and leaseback which relate to a finance lease arrangements. Some leases Liabilities for wages and salaries, are also capitalised as part are renewable at State Rail’s annual leave, long service leave, of the lease asset. option for periods up to superannuation, pay in lieu of twelve months. Lease assets are depreciated certain holidays worked, and on a straight line basis over severance benefits are fully Some items of office the remaining term of the recognised in respect of services equipment and plant are also relevant lease or, where it is provided by employees up to obtained under operating likely that ownership of the balance date. leases. lease asset will be obtained, The liabilities and associated State Rail has granted various the remaining useful life of expenses for all annual leave, operating leases for real estate the asset. wages and salaries, and any (including air space and All finance lease liabilities other current employee advertising rights), sometimes have been extinguished by entitlement liabilities are covering long periods (up to defeasance. See note 1.14. measured at their nominal 99 years). A few of the longer amounts using remuneration leases are non-cancellable. iv)Operating leases rates current as at balance date. In all cases State Rail retains Minimum lease payment and All other recognised employee legal title to the leased contingent rental revenue or entitlement liabilities and property. expense is recognised in the associated expenses are reporting period in which it measured at the present is earned or incurred, value of the estimated future respectively. payments. Where State Rail is the lessor under an operating lease, the asset leased is classified as a non-current asset. See note 3.1. 45 Financial Statements
Notes to and forming part of the financial statements
Liabilities for sick leave, maternity The restructuring of the NSW rail Contributions and social leave, adoption leave, family industry continued in 1999-2000. program revenues are passes and retirement passes The government withdrew most recognised when control of the are not recognised. Sick leave of State Rail’s assets relating to cash or other asset (or the right liabilities (which are all non- the new Airport Line, and also to receive it) is gained. If, after vesting) are not recognised State Rail’s liabilities relating being recognised as revenue, because experience indicates to the Safeworking and Client a contribution is to be repaid that, on average, the sick leave Services Sections, and or returned because of a failure taken each year is less than the transferred them to the Rail to meet specific conditions entitlement accruing in that Access Corporation. The attaching to it, a creditor and year, and, as this experience withdrawal of the Airport Line an expense are recognised. is expected to continue, it is assets ($566.405m) was treated See note 2. considered improbable that as an equity distribution to the Social program funding existing accumulated government and the withdrawal is provided by the NSW entitlements will be used by of the Safeworking and Client Government to reimburse State employees. Maternity leave and Services Section liabilities Rail for the revenue foregone adoption leave liabilities are not ($2.800m) was treated as in providing concession fares to recognised because they are an equity contribution by specified classes of passenger immaterial. Family pass and the government. Both were and for revenue shortfalls retirement pass liabilities are recognised as direct resulting from providing certain not recognised as they are not adjustments to accumulated train services at the request quantifiable and do not result funds. See note 14. of the Government. in any net marginal costs. 1.13 Revenue Revenue from the sale or The liabilities for superannuation Revenue is measured at the disposal of assets is recognised and long service leave are fair value of the consideration when control of the asset has actuarially assessed. All other or contributions received or passed to the buyer. employee entitlement liabilities receivable. In most cases this is are assessed by management. the value of the cash exchanged Any lump-sum rental premium or exchangeable. received from a lessee at the The net unfunded beginning of a long-term lease superannuation liability is fully Revenue from the rendering is recognised as Asset Disposals recognised as part of Provisions. of a service (excluding the revenue. See notes 3 and 11. provision of a social program) is recognised when a right to Rent revenue is recognised 1.12 Equity Adjustments due be compensated for the service as outlined in note 1.10(iv). to Restructuring arises, by reference to the stage When the NSW rail industry was of completion of the contract. Interest revenue is recognised restructured on 1 July 1996, the Such revenue is usually on a time proportionate basis that New South Wales government recognised in the period the takes into account the effective undertook to fund certain service is rendered. Where the yield in the financial asset. workers’ compensation liabilities outcome of a contract to provide incurred prior to that date but Revenue is not recognised services cannot be reliably payable in the future. This unless receipt is probable estimated, contract costs are undertaking, and any and the amount is reliably recognised as an expense in subsequent adjustment to the measurable. the reporting period in which quantum thereof, is treated as they are incurred; and where an equity contribution from the it is probable that the costs will government and is recognised be recovered, revenue is only as a direct adjustment to recognised to the extent of the accumulated funds. costs incurred. 46 Notes to and forming part of the financial statements
1.14 Debt Defeasance 1.16 Financial Instruments Interest rate swap contracts Where the Treasury assumes Financial instruments are are used to manage responsibility for the servicing contracts that give rise to both exposures to interest rate requirements for a debt, the debt a financial asset of one entity risk by enabling a floating is considered to be extinguished and a financial liability (or equity rate interest obligation to be by an in-substance defeasance instrument) of another entity. swapped into a fixed rate and is removed from the balance They include cash at bank, obligation, or vice versa. The sheet. When the carrying amount receivables, investments, difference between the two of an asset given up in creditors, borrowings, finance rates, calculated by reference defeasance of a debt differs from leases, derivative financial to an agreed notional principal the carrying amount of the debt, instruments (interest rate swap amount, is exchanged the difference is recognised as contracts, forward foreign between the parties at a gain or loss on defeasance exchange contracts, foreign specified intervals, usually as at the date of entering the currency option contracts, and semi-annually. These contracts defeasance arrangement. commodity swap contracts), entail a right to receive floating and financial guarantees. rate interest, which is offset by 1.15 Redundancy an obligation to pay fixed rate Amounts received from the i) Derivative financial instruments interest or a right to receive Department of Transport during When goods are ordered from fixed rate interest, which is the year to fund payments to overseas, or when borrowings offset by an obligation to pay employees electing to take have floating interest rates, floating rate interest. voluntary redundancy are exposures to fluctuations in recognised as contributions. foreign exchange rates, Forward foreign exchange Severance payments, job search commodity prices, or interest contracts or foreign currency allowances, and payments in rates arise. In order to mitigate option contracts are used to lieu of notice are recognised as the adverse effects of such hedge against fluctuations in severance payments expense. exposures derivative financial exchange rates in relation to Payments for annual leave, long instruments, in the form of purchase orders denominated service leave, superannuation hedge contracts, are used. in a foreign currency. Between and pay in lieu of certain 30% and 80% of such The hedge contracts comprise holidays worked which are paid commitments are hedged interest rate swap contracts, on redundancy are charged in this manner. These forward foreign exchange to the respective provisions. contracts entail a right to contracts, foreign currency See notes 2 and 11. receive a fixed amount of options, and commodity foreign currency at a specified swap contracts. future date, which is offset by an obligation to pay a fixed amount of domestic currency at that time.
47 Financial Statements
Notes to and forming part of the financial statements
Commodity swap contracts The due repayment of all Commodity swap contracts are used to hedge against borrowings and the due are not recognised in the fluctuations in the price of payment of interest and other balance sheet because the distillate. These contracts associated expenses thereon value of the market rate are treated as financial are guaranteed by the component cannot be instruments because, despite government and are charges measured reliably until their requiring physical delivery on State Rail’s income and settlement date. Any of distillate, they are intended revenue pursuant to sections unrealised gain or loss at to be settled other than by 22A and 22C of the Public balance date is recognised physical delivery in Authorities (Financial as revenue or expense accordance with general Arrangements) Act 1987. respectively. market practice. The contracts The payments due in respect Financial guarantees effectively entail a right to sell of derivative financial receivable or payable are a specified quantity of distillate instruments are also charges not recognised in the balance for a fixed amount, which is on State Rail’s income and sheet because their realisation offset by an obligation to buy revenue pursuant to section is contingent on the a similar quantity at its market 22C of that Act. happening of future events price at the date of settlement. iii) Accounting treatment which have low probabilities. ii) Financial guarantees and All financial instruments Any realised financial obligations (other than derivative financial guarantee receivable or Financial guarantees have instruments and financial payable is recognised as been obtained from other guarantees) are recognised revenue or expense parties to secure contractual in the balance sheet when respectively. payment or performance they are received, incurred Any arrangement to hedge obligations to State Rail. Such or issued. an anticipated purchase or guarantees take the form of Interest rate swap contracts sale is accounted for as a deposits or bank guarantees. are not recognised in the hedge of that transaction In the event of the financial balance sheet because the if, and only if, (i) the hedge guarantee becoming value of the floating rate remains effective in reducing receivable due to the party’s component of each contract exposure to the hedged risks; non-payment or non- cannot be measured reliably (ii) the hedging relationship performance, the deposit until settlement date. At that is designated prospectively is retained, or the bank time any realised gain or loss (specifically identifying the guarantee is collected, is recognised as revenue or hedging instrument and by State Rail. expense respectively. the hedged anticipated Conversely, financial transaction); and (iii) it is Forward foreign exchange undertakings have been probable that the anticipated contracts are not recognised given to other parties to transaction will occur as in the balance sheet because secure their rights in the event designated. they are intended to be held of a contractual default by until maturity and the value A cost or gain arising at the State Rail. of the foreign currency inception of a hedge is component of each contract accounted for separately cannot be reliably measured from a cost or gain arising until that date. Upon maturity subsequently. they are accounted for as outlined in note 1.4.
48 Notes to and forming part of the financial statements
A cost or gain arising at the The fair value of borrowings, i) Upgrading of Auburn inception of a hedge in relation derivative financial Service Centre to a specific purchase or sale instruments, and financial Clyde Maintenance Facilities is deferred and included in the guarantees is determined at Pty Limited upgraded the measurement of the purchase balance date on the following maintenance workshop known or sale. A cost or gain arising basis: as Auburn Service Centre. at the inception of any other •A borrowing is valued at the The company borrowed the hedge is deferred and quoted offer price or the necessary funds for the project. recognised as an asset or risk-adjusted market price As State Rail assumed the liability and amortised as an of the instrument. majority of the risks and expense or revenue over the • An interest rate swap enjoys the benefits of the life of the hedging transaction. contract, forward foreign project, the financing for exchange contract, foreign A gain or loss that arises on the upgrading has been currency option contract, a hedge instrument (after its recognised as a borrowing or commodity swap contract inception) is deferred and and the upgraded centre has is valued at the amount included in the measurement been recognised as property, quoted by a bank or the of the anticipated purchase plant and equipment. NSW Treasury Corporation or sale when it occurs. to realise the contract (if ii) Construction and operation An exchange difference it is favourable) or to settle of Airport Line stations arising in relation to a hedge it (if it is unfavourable). Airport Link Company Pty is accounted for as outlined •A financial guarantee is Limited designed, financed, in note 1.4. valued at its contractual constructed and commenced amount. operating four stations on the If and when it becomes Airport Line, which runs from probable that some or all All financial instruments are Central to Turrella via Sydney of the hedged anticipated normally held to maturity rather Airport. The company is to transaction will not occur than being traded. However, operate the stations until as designated, any deferred for the purpose of determining 2030 and then transfer the gain or loss on that part of the fair values of borrowings, ownership to State Rail. The the transaction is immediately derivative financial instruments company went into receivership recognised in the income and and financial guarantees, it is in November 2000. expenditure statement. If and assumed that those financial when the hedge ceases to instruments will be realised at Revenue from passengers be effective, any further gain balance date. using the line is to be shared or loss arising in the period between State Rail and the See note 17. when the hedge is no longer company on an agreed basis effective is immediately 1.17 Private Sector Participation until 2030. recognised in the income in the Provision of Public iii) Construction and operation and expenditure statement. Infrastructure of the Sydney light railway Three arrangements have been iv)Valuation A privately owned light railway made with private sector Financial instruments running from Sydney Central companies for the provision recognised in the balance to Lilyfield was built on land of public infrastructure. The sheet are measured at their owned or leased by State Rail. accounting treatment adopted or historical cost, which, except It is to be operated by the proposed for each arrangement in the case of borrowings, also private sector until 2028. is summarised below. represents their fair value. State Rail’s only involvement in the arrangement is to lease the land as lessor at a nominal rental. 49 Financial Statements
Notes to and forming part of the financial statements
Note 2000-01 1999-2000 $000 $000 2 Revenues 2.1 Contributions Capital grants from NSW Government Funding for Airport line and associated works 0 51 051 Funding for other capital works 404 049 262 534 Transfer of assets from Department of Transport 755 27 126 Total capital grants from NSW government 404 804 340 711 NSW Government operating subsidies Major periodic maintenance 123 600 110 000 Employee redundancy funding 49 700 15 500 Interest on old Freight Rail borrowings 18 103 14 972 Training schemes 345 220 Total NSW Government operating subsidies 191 748 140 692 Commonwealth Government operating subsidies Employment and training schemes 409 109 Total contributions 596 961 481 512
2.2 Accumulated Unexpended Contributions at Year End Capital grants from NSW government 132 386 481 Building Better Cities Program 2 518 2 518 Australian Land Transport Development Program 104 104 Employee redundancy funding 1 768 1 846 Total unspent and carried forward at year end 136 776 4 949
2.3 Revenue from Rendering of Services Passenger services 534 373 517 850 Social program funding 593 116 478 900 Ancillary services to other NSW rail entities 82 717 81 688 Total revenue from rendering of services 1 210 206 1 078 438
2.4 Particular Revenues Operating lease contingent rentals 922 273 Net foreign exchange gains 649 593
3 Expenses 3.1 Particular Expenses Interest 14 762 13 220 Auditor’s fee for auditing services 397 349 Auditor’s fee for non-auditing services 0 4 Minimum lease payments under operating leases • Rail access agreements 349 359 336 931 • Other leases 31 354 24 719 Contingent rentals under operating leases 1 279 967 Net loss on disposal of non-market-valued property plant and equipment 24 193 27 039
50 Notes to and forming part of the financial statements
Note 2000-01 1999-2000 $000 $000 3.2 Components of Net Superannuation Expense Accruing liability recognised as payroll oncosts 49 447 43 070 Actuarial adjustment 56 194 18 110 Superannuation Contributions Surcharge payments 5 081 3 490 (Less) contributions received for transferred staff (4 071) (7 978) Plus/(less) interest expense/(revenue) (1 474) 1 110 Net superannuation expense 105 177 57 802
3.3 Board Members’ Superannuation Expense Employer superannuation contributions in respect of non-executive board members were $16 880 (1999-2000: $16 229). These were recognised as employee entitlements expenses.
4Cash 4.1 Reconciliation of Operating Result with Net Cash used in Operating Activities Operating surplus 14 055 84 134 Government contributions (596 961) (454 386) Asset disposals revenue (969) (21 230) Amortisation of deferred gains (4 962) (4 962) Amortisation of loan premiums (205) (317) Capital WIP expensed 15 881 9 205 Depreciation 154 726 153 006 Assets written off or sold 88 781 48 005 Inventory write downs and losses 37 0 Debt management (gains)/losses (68) 177 Amortisation of loan discounts 710 902 Amortisation of deferred losses 264 264 Doubtful debts expense 500 371 Accrued grant expense 18 239 0 Net movements in assets and liabilities applicable to operating activities: • (Increase)/decrease in receivables 4 091 (25 154) • (Increase)/decrease in inventories 315 (2 351) • (Increase)/decrease in other assets 0 2 438 • Increase/(decrease) in net tax liability 237 0 • Increase/(decrease) in creditors (27 786) 33 549 • Increase/(decrease) in provisions 17 108 (10 350) Net cash used in operating activities (316 007) (186 699)
4.2 Reconciliation of Cash Cash shown in balance sheet 16 566 32 293 Short term investments 6 174 313 39 828 Cash shown in statement of cash flows 1.5 190 879 72 121
51 Financial Statements
Notes to and forming part of the financial statements
Note 30.6.2001 30.6.2000 $000 $000 5 Receivables 5.1 Analysis of Receivables Current receivables Trade and other debtors 55 144 51 492 Workers’ compensation funding receivable 11.4 22 875 22 578 Advances to employees (repayable on exit) 7 8 Prepayments 2 276 2 475 80 302 76 553 Less provision for doubtful debts 868 366 To t a l current receivables 79 434 76 187 Non-current receivables Workers’ compensation funding receivable 11.4 118 068 125 061 Advances to employees (repayable on exit) 2 744 2 872 Prepayments 6 036 0 Total non-current receivables 126 848 127 933 Total receivables 206 282 204 120
5.2 Minimum Lease Rentals Receivable on Non-cancellable Operating Leases Not later than 1 year 27 726 19 103 Later than 1 year and not later than 5 years 84 731 51 010 Later than 5 years 177 063 166 117 Total non-cancellable lease rentals receivable 289 520 236 230
No other operating lease commitments were receivable from lessees.
52 Notes to and forming part of the financial statements
Note 30.6.2001 30.6.2000 $000 $000 6 Investments Deposits with NSW Treasury Corporation 174 313 39 828 Security deposits held in bank term deposits 1 144 1 072 Total investments 175 457 40 900
7 Property, Plant and Equipment 7.1 Property, Plant and Equipment Classes Land Gross amount 1 191 394 1 269 162 Buildings Gross amount 2 206 579 2 080 584 Less accumulated depreciation 819 703 806 619 Total buildings 1 386 876 1 273 965 Rollingstock (non-leased) Gross amount 3 007 356 3 001 788 Less accumulated depreciation 1 757 319 1 687 710 Total rollingstock (non-leased) 1 250 037 1 314 078 Leased rollingstock Gross amount 989 241 988 312 Less accumulated depreciation 267 226 237 743 Total leased rollingstock 722 015 750 569 Plant and machinery Gross amount 325 409 246 828 Less accumulated depreciation 134 275 114 342 Total plant and machinery 191 134 132 486 Trackwork and infrastructure Gross amount 303 194 323 227 Less accumulated depreciation 184 866 194 195 Total trackwork and infrastructure 118 328 129 032 Capital works in progress 98 866 205 035 Total property plant and equipment 4 958 650 5 074 327
53 Financial Statements
Notes to and forming part of the financial statements
Note 30.6.2001 30.6.2000 $000 $000 7.2 Analysis of Valuation Bases Land At historical cost 2 112 0 At fair value 8 167 8 167 At valuation 1 077 859 1 095 109 At market selling price 103 256 165 886 Total land 1 191 394 1 269 162 Buildings At historical cost 12 668 0 Less accumulated depreciation 226 0 12 442 0 At replacement cost 1 968 516 1 852 750 Less accumulated depreciation 732 576 719 208 1 235 940 1 133 542 At market selling price 225 394 227 834 Less accumulated depreciation 86 900 87 411 138 494 140 423 Total buildings 1 386 876 1 273 965 Rollingstock (non-leased) At replacement cost 3 007 357 3 001 788 Less accumulated depreciation 1 757 320 1 687 710 Total rollingstock (non-leased) 1 250 037 1 314 078 Leased rollingstock At replacement cost 989 242 988 312 Less accumulated depreciation 267 227 237 743 Total leased rollingstock 722 015 750 569 Plant and machinery At historical cost 110 832 35 631 Less accumulated depreciation 5 829 564 105 003 35 067 At replacement cost 214 577 211 197 Less accumulated depreciation 128 446 113 778 86 131 97 419 Total plant and machinery 191 134 132 486 Trackwork and infrastructure At replacement cost 303 194 323 227 Less accumulated depreciation 184 866 194 195 Total trackwork and infrastructure 118 328 129 032 Capital works in progress 98 866 205 035 Total property plant and equipment 4 958 650 5 074 327
The market value of surplus trackwork has been assessed to be similar to its written down replacement cost.
54 Notes to and forming part of the financial statements
Note 30.6.2001 30.6.2000 $000 $000 7.3 Useful Lives Assets are depreciated over the following useful lives: 2001 2000 Years Years Leased rollingstock 20-35 20-35 Rollingstock (non-leased) 20-35 20-35 Stations (and related works) 200 200 Non-station buildings, brick 80 80 Non-station buildings, non-brick 50 50 Plant and machinery 5-30 5-30 Trackwork and infrastructure 200 200
7.4 Revaluations Land and non-surplus buildings were revalued in 1999-2000 by the State Valuation Office. Strata leased to tenants for air space development were revalued in 1999-2000 by Herron Todd White.
Rollingstock, non-surplus trackwork, and plant and machinery were revalued during 1998-99. The revaluations were performed by management except for certain categories of plant and machinery, which were revalued by Hyman Valuations Pty Limited.
Surplus buildings were revalued in 1997-98 by the State Valuation Office. Surplus trackwork was revalued in 1997-98 by management.
See note 1.8 (ii).
7.5 Gross Replacement Cost of Fully-depreciated Assets The gross replacement cost of fully depreciated assets is $42.960m (2000: $39.697m).
7.6 Encumbrance of Surplus Land All future net proceeds arising from the sale of surplus real estate, all premiums received from the leasing of surplus real estate, and certain rental revenues have been assigned to the Treasurer in consideration for the injection of equity capital in 1990.
55 Financial Statements
Notes to and forming part of the financial statements
7.7 Asset Class Movements
Land Buildings $000 $000 2000-01 Carrying amount at start of year 1 269 162 1 273 965 Additions 10 446 116 199 Disposals (70 028) (1 323) Depreciation expense – (14 556) Other movements (18 186) 12 591 Carrying amount at end of year 1 191 394 1 386 876 1999-2000 Carrying amount at start of year 1 143 247 717 936 Additions 8 362 274 816 Disposals (29 516) (10 363) Net revaluation increments 147 069 304 036 Depreciation expense – (12 460) Divested (to Rail Access Corp) – – Adjust spares cap threshold – – Other movements –– Carrying amount at end of year 1 269 162 1 273 965
Note 30.6.2001 30.6.2000 $000 $000 8 Other Assets Non-current other assets Deferred losses on rollingstock sale and leaseback 4 050 4 050 Less accumulated amortisation 1 885 1 621 Total other assets 2 165 2 429
56 Rollingstock Leased Plant and Trackwork & Capital works (non-leased) rollingstock machinery infrastructure in progress Total $000 $000 $000 $000 $000 $000
1 314 078 750 569 132 486 129 032 205 035 5 074 327 31 961 930 79 188 3 438 – 242 162 (3 931) – (195) (13 304) – (88 781) (89 503) (29 484) (20 345) (838) – (154 726) (2 568) – – – (106 169) (114 332) 1 250 037 722 015 191 134 118 328 98 866 4 958 650
1 437 090 779 852 120 299 129 411 794 089 5 121 924 12 802 191 38 968 3 288 – 338 427 ––(5 283) (2 842) – (48 004) (10 846) ––––440 259 (88 749) (29 474) (21 498) (825) – (153 006) ––––(556 065) (556 065) (36 219) – – – (1 438) (37 657) ––––(31 551) (31 551) 1 314 078 750 569 132 486 129 032 205 035 5 074 327
57 Financial Statements
Notes to and forming part of the financial statements
Note 30.6.2001 30.6.2000 $000 $000 9 Borrowings 9.1 Total Borrowings Current borrowings Face value 93 633 55 711 Unamortised premiums 18 0 To t a l current borrowings 93 651 55 711 Non-current borrowings Face value 105 528 145 750 Unamortised premiums 0 453 Less unamortised discounts 2 744 3 361 Total non-current borrowings 102 784 142 842 Total borrowings Face value 199 161 201 461 Unamortised premiums 18 453 Less unamortised discounts 2 744 3 361 To t a l borrowings 196 435 198 553
9.2 Maturity Profile Not later than 1 year 93 651 55 711 Later than 1 year and not later than 2 years 9 557 18 871 Later than 2 years and not later than 5 years 37 905 50 049 Later than 5 years 55 322 73 922 Total borrowings 196 435 198 553
10 Creditors Current Creditors Trade creditors 31 366 25 285 Capital works accruals 48 180 79 822 Other creditors and accruals 108 403 114 951 Total creditors 187 949 220 058
58 Notes to and forming part of the financial statements
Note 30.6.2001 30.6.2000 $000 $000 11 Provisions 11.1 Total Provisions Current provisions Superannuation (unfunded) 11.2 22 091 90 561 Annual leave 46 753 44 051 Long service leave 11.3 11 856 10 016 Severance payments 589 2 159 Pay in lieu of certain holidays worked 7 504 5 804 Wages and salaries 2 767 13 117 Total current employee entitlements 91 560 165 708 Workers’ compensation 11.4 11 647 8 742 Pre-1.7.1996 workers’ compensation 11.4 22 875 22 578 Total current provisions 126 082 197 028 Non-current provisions Superannuation (unfunded) 11.2 476 632 390 333 Long service leave 11.3 86 956 81 884 Pay in lieu of certain holidays worked 0 5 802 Total non-current employee entitlements 563 588 478 019 Workers’ compensation 11.4 32 473 22 994 Pre-1.7.1996 workers’ compensation 11.4 118 067 125 061 Total non-current provisions 714 128 626 074 Total provisions Superannuation (unfunded) 11.2 498 723 480 894 Long service leave 11.3 98 812 91 900 Annual leave 46 753 44 051 Pay in lieu of certain holidays worked 7 504 11 606 Severance payments 589 2 159 Wages and salaries 2 767 13 117 Total employee entitlements 655 148 643 727 Workers’ compensation 11.4 44 120 31 736 Pre-1.7.1996 workers’ compensation 11.4 140 942 147 639 Total provisions 840 210 823 102
59 Financial Statements
Notes to and forming part of the financial statements
11.2 Superannuation Employer contributions are made to three defined-benefit superannuation schemes, the State Authorities Superannuation Scheme (SASS), the State Authorities Non-Contributory Superannuation Scheme (SANCSS), and the State Superannuation Scheme (SSS). Each scheme is administered by the SAS Trustee Corporation.
Employer contributions made to the superannuation schemes to fund emerging liabilities are held in investment reserve accounts maintained by the SAS Trustee Corporation.
The net unfunded superannuation liability to the three schemes comprises:
SASS SANCSS SSS Total $000 $000 $000 $000 30.6.2001 Gross liability 455 623 56 952 4 557 517 132 Plus/(less) investment reserve (17 263) 2 846 (3 992) (18 409) Net unfunded liability 438 360 59 798 565 498 723 30.6.2000 Gross liability 414 274 47 251 2 898 464 423 Plus/(less) investment reserve 18 952 4 477 (6 958) 16 471 Net unfunded liability 433 226 51 728 (4 060) 480 894
The gross superannuation liability for each scheme at year end was assessed by a consulting actuary, William Mercer Pty Limited, using membership databases as at 28 February 2001. The actuary assumed an interest rate of 7% per annum, salary growth rates of 3.0% for 2001-02, 6.5% for 2002-03 and 4.0% for 2003-04, and a Consumer Price Index increase of 2.5% per annum.
11.3 Long Service Leave The non-current liability for long service leave was assessed in June 2001 by a consulting actuary, Mr M. Baxter FIAA. The economic assumptions were an interest rate of 6.0% per annum and a salary growth rate of 3% per annum.
11.4 Workers’ Compensation The pre-1.7.1996 workers’ compensation provision relates to all claims incurred prior to1 July 1996, the date of the restructuring of the NSW rail industry. The NSW Treasury has undertaken to fund all such claims. This undertaking has been recognised as a receivable with a corresponding credit to accumulated funds. See notes 5 and 14.
For injuries incurred on or after 1 July 1996, workers’ compensation insurance is in place to cover any claim exceeding $1m and the workers’ compensation provision is maintained for smaller claims, for which State Rail is a licenced self-insurer. The liability at year end was assessed by a consulting actuary, Mr D.A. Zaman FIA FIAA.
60 Notes to and forming part of the financial statements
Note 30.6.2001 30.6.2000 $000 $000 12 Deferred Revenue Deferred gains on rollingstock sale and leaseback 86 741 86 741 Less accumulated amortisation 40 544 35 582 Total deferred revenue 46 197 51 159
13 Reserves Asset Revaluation Reserve Balance at start of year 2 899 571 2 505 364 Revaluation increments 0 440 259 Transfers to accumulated funds on asset disposal (91 665) (10 205) Adjust Asset Revaluation Reserve for derecognised spare parts 0 (36 219) Other adjustments (4 812) 372 Balance at end of year 2 803 094 2 899 571
The Asset Revaluation Reserve recognises the accumulated net revaluation increments in relation to property plant and equipment currently held.
14 Accumulated Funds Accumulated funds at start of year 1 152 813 1 654 806 Non-owner changes in accumulated funds Net result from operating activities for the year 14 055 84 134 Transfers from Asset Revaluation Reserve on asset disposal 13 91 665 10 205 Derecognition of consumable spares inventories 0 (33 106) Alteration of capitalisation threshold for spares 0 (37 657) Asset Revaluation Reserve adjustment for spares 0 36 219 To tal non-owner changes 105 720 59 795 Equity contributions by government Funding of pre-1.7.1996 workers’ compensation liabilities 11.4 17 300 1 817 Liabilities withdrawn for transfer to other entities 0 2 800 Total contributions 17 300 4 617 Less equity distributions to government Net assets withdrawn for transfer to other entities 0 566 405 Total distributions 0 566 405 Accumulated funds at end of year 1 275 833 1 152 813
61 Financial Statements
Notes to and forming part of the financial statements
Note 30.6.2001 30.6.2000 $000 $000 15 Expenditure Commitments 15.1 Expenditure Commitments Rail access fees Within 12 months 427 013 367 605 12 months or longer but not longer than 5 years 1 708 054 1 470 418 Longer than 5 years 0 367 605 Total rail access fees 2 135 067 2 205 628 Leasing (excluding rail access fees) Within 12 months 20 240 26 663 12 months or longer but not longer than 5 years 55 820 56 056 Longer than 5 years 64 005 52 321 Total leasing (excluding rail access fees) 140 065 135 040 Capital Within 12 months 152 966 151 480 12 months or longer but not longer than 5 years 253 985 333 291 Longer than 5 years 0 144 918 Total capital 406 951 629 689 Other expenditure Within 12 months 189 719 230 863 12 months or longer but not longer than 5 years 171 131 202 627 Longer than 5 years 11 236 1 076 Total other expenditure 372 086 434 566 Total Within 12 months 789 938 776 611 12 months or longer but not longer than 5 years 2 188 990 2 062 392 Longer than 5 years 75 241 565 920 Total expenditure commitments 3 054 169 3 404 923
The expenditure commitments include any associated Goods and Services Tax. A contingent asset of $276.710m (2000: $302 000) exists for the related input tax credits which are expected to be recoverable from the Australian Taxation Office.
15.2 Minimum Lease Payments committed under Non-cancellable Operating Leases Not later than 1 year 442 914 390 989 Later than one year and not later than 5 years 1 760 128 1 522 854 Later than 5 years 64 005 419 926 Total committed 2 267 047 2 333 769
Minimum lease payment commitments include any associated Goods and Services Tax. A contingent asset of $206.094m (2000: $212 000) exists for the related input tax credits which are expected to be recoverable from the Australian Taxation Office.
62 Notes to and forming part of the financial statements
16 Contingent Liabilities At year end, unsettled, uninsured claims subject to litigation and other disputes amounted to $71.967m (2000: $19.651m). Depending on the outcome of the litigation or dispute, the claims may or may not be incurred.
See also note 17.3.
17 Financial Instruments 17.1 Credit Risk Receivables, interest rate swaps, forward foreign exchange contracts, foreign currency option contracts and commodity swap contracts are exposed to the risk of financial loss due to the other party to the contract failing to discharge a financial obligation thereunder.
The maximum credit risk exposure in relation to receivables is the carrying amount, less the provision for doubtful debts, as set out in note 5.1.
The maximum credit risk in relation to interest rate swap contracts, forward foreign exchange contracts, foreign currency option contracts and commodity swap contracts is the fair value of the contracts, as set out in note 17.3.
The only significant concentration of credit risk arises in respect of receivables from other NSW rail entities (Rail Infrastructure Corporation and FreightCorp). Receivables from these entities totalled $25.556m (2000: $21.440m) at year end. It is considered that, despite the size of the credit risk exposure, the risk of loss is minimal due to the nature and general financial standing of the debtors concerned.
63 Financial Statements
Notes to and forming part of the financial statements
17.2 Interest Rate Risk Cash at bank, investments, borrowings and interest rate swap contracts are exposed to the risk that their value will fluctuate due to changes in market interest rates.
The maturity (or contractual repricing) dates and weighted average effective interest rates of financial instruments exposed to interest rate risk at year end are:
Average Average Principal Principal Interest Rate Interest Rate Amount Amount 2001 2000 30.6.2001 30.6.2000 Timing of exposure % % $000 $000 Not later than 1 year Cash 5.35 4.83 16 566 32 293 Investments 5.87 5.97 174 313 39 828 Borrowings* 5.01 6.20 93 651 55 711 Interest rate swap contracts: • Fixed rate paying 5.26 – 36 834 – • Floating rate 5.60 – (36 834) – 284 530 127 832 Later than 1 year and not later than 5 years Borrowings* 8.11 7.24 47 462 68 920 Interest rate swap contracts: • Fixed rate paying 8.97 8.63 48 000 52 263 • Fixed rate receiving 6.49 6.38 36 000 24 000 • Floating rate – contracts commenced 6.05 6.20 (72 000) (76 263) • Floating rate – contracts not commenced – – (12 000) – 47 462 68 920 Later than 5 years Borrowings* 8.16 8.16 55 322 73 921 Interest rate swap contracts: • Fixed rate paying 6.33 – 3 000 0 • Fixed rate receiving – 6.70 0 12 000 • Floating rate – contracts commenced – 6.48 0 (12 000) • Floating rate – contracts not commenced – – (3 000) – 55 322 73 921 Total principal exposed 387 314 270 673 *Borrowings are net of any unamortised discounts or premiums
64 Notes to and forming part of the financial statements
17.3 Valuation of Financial Instruments Financial assets and financial liabilities recognised in the balance sheet are carried at historical cost which, except in the case of borrowings, is also fair value. At year end, the fair values for borrowings and for financial instruments not recognised in the balance sheet were: Carrying/ Carrying/ Contract Value Contract Value Fair Value Fair Value Note 30.6.2001 30.6.2000 30.6.2001 30.6.2000 $000 $000 $000 $000 Assets (current and non-current) Favourable commodity swap contracts 630 798 710 923 Favourable interest rate swap contracts 58 367 40 263 772 371 Favourable forward foreign exchange contracts 5 076 7 570 5 132 7 378 Financial guarantees receivable 66 433 78 135 66 433 78 135 Liabilities (current and non-current) Borrowings 9 196 435 198 553 206 780 208 817 Unfavourable interest rate swap contracts 65 467 48 000 3 994 4 752 Unfavourable forward foreign exchange contracts 8 654 8 240 8 768 8 233
Financial guarantees receivable comprise security deposits, retention moneys, fixed price contract deposits and contract bank guarantees.
State Rail has entered into an agreement with a private sector company requiring the company to operate four stations on the Airport Line until 2030. If the agreement is terminated early due to default by either party, State Rail has an obligation, depending on the cause of the termination, to pay the company either (i) the value of the future income expected to be earned by the station business or (ii) compensation for its shareholders and to meet its debt obligations. The liability would be assessed by an independent appraiser. The company went into receivership in November 2000. The receiver and manager continues to operate the stations in accordance with the original agreement.
17.4 Maturity Profiles of Interest Rate Swap and Commodity Swap Contracts Notional contract value 30.6.2001 30.6.2000 Maturity profiles $000 $000 Interest rate swaps Not later than 1 year 36 834 0 Later than 1 year and not later than 5 years 84 000 76 263 Later than 5 years 3 000 12 000 Total interest rate swaps 123 834 88 263 Commodity swaps Not later than 1 year 630 798 Total commodity swaps 630 798
65 Financial Statements
Notes to and forming part of the financial statements
17.5 Forward Foreign Exchange Contracts At year end $36.639m (2000: $36.964m) of overseas purchase orders were exposed to fluctuations in foreign exchange rates. Forward foreign exchange contracts were used to hedge many of these purchases. In some instances, discretionary transactions are used in an attempt to reduce the exposure to foreign exchange movements.
Average Average Contract value Contract value exchange rate exchange rate 30.6.2001 30.6.2000 Maturity profiles 30.6.2001 30.6.2000 $A000 $A000 Hedged Purchases Contracts denominated in US dollars Not later than 3 months 0.5098 0.5965 793 4 724 Later than 3 months and not later than 12 months 0.5039 – 1 885 0 To tal hedged US dollar contracts 2 678 4 724 Contracts denominated in pounds sterling Not later than 3 months 0.3600 0 3936 556 1 787 Later than 3 months and not later than 12 months 0.3600 0.3936 278 2 236 Total hedged pounds sterling contracts 834 4 023 Contracts denominated in Spanish pesetas Not later than 3 months – 102.21 0 26 To tal hedged Spanish peseta contracts 0 26 Contracts denominated in Euros Not later than 3 months 0.5911 0.6306 3 838 1 610 Later than 3 months and not later than 12 months 0.5890 0.6347 3 758 3 072 Total hedged Euro contracts 7 596 4 682 Contracts denominated in Japanese yen Not later than 3 months 62.88 – 315 0 Later than 3 months and not later than 12 months 62.88 – 315 0 To tal hedged Japanese yen contracts 630 0 Total hedged purchases 11 738 13 455 Discretionary Transactions Contracts denominated in US dollars Not later than 3 months 0.5823 0.6407 1 992 2 000 Total discretionary transactions 1 992 2 000 Total forward foreign exchange contracts 13 730 15 455
66 Notes to and forming part of the financial statements
18 Legal Form Statement by Members of the Board The Transport Administration Act in relation to the financial statements for the year ended 30 June 2001 1988 constitutes the State Rail Pursuant to section 41C (1B) of the Public Finance and Audit Act and clause Authority of New South Wales 14 (1) of the Public Finance and Audit Regulation 2000 and in accordance with as a statutory body representing a resolution of the Board of the State Rail Authority of New South Wales, the Crown in right of New we state that: South Wales. 1. In our opinion, the accompanying financial statements for the year ended 19 Principal Activities 30 June 2001, read in conjunction with the notes thereto, exhibit a true and During the year State Rail fair view of the financial position and transactions of the State Rail Authority continued to operate passenger of New South Wales; rail services and rural feeder 2. The financial statements have been prepared in accordance with the coach services, principally in provisions of the Public Finance and Audit Act 1983, the Public Finance New South Wales. and Audit Regulation 2000, and the Treasurer’s directions; and 3. We are not aware, as at the date of this statement, of any circumstances 20 Interest in Associate which would render any particulars included in the financial statements State Rail has an interest in an to be misleading or inaccurate. associated entity, Parramatta Rail Link Company Pty Limited.
The company was registered on 14 June 2000 for the purpose of facilitating the design and construction of a railway from P. A. Binsted L. Di Bartolomeo Parramatta to Chatswood Chairman Acting Chief Executive via Epping. 12 October 2001 State Rail, Rail Infrastructure Corporation, and the Director- General of the Department of Transport each hold one third of both the equity and the voting power in the company.
The company manages the Parramatta Rail Link Project as agent of the three shareholders.
The carrying amount of State Rail’s investment is $10.
P. Scarlett Executive Director Finance
12 October 2001
(Finish of audited financial statements)
67 Financial Statements
68 Contents
70 The State Rail Authority Board
76 Board Code of Conduct
76 Comments on Staff Code of Conduct
77 Major Works in Progress
78 Five-year Comparative Income and Expenditure Statement
State Rail Authority of New South Wales 80 Performance in Paying Accounts Appendices for 2000-2001 80 Liability Management Performance
80 Investment Performance
82 Land Values and Land Disposal
83 Insurance Activities
83 Consultants
83 Funds Granted to Non-Government Organisations
84 Pricing Policies
84 Government Funding and Social Programs
84 Responses to significant issues raised by the Auditor-General
85 Internal and External Committees
86 Human Resources
88 SES Performance Reviews and Executive Remuneration
92 Equal Employment Opportunity
92 NSW Government Action Plan for Women
93 Privacy and Personal Information
93 Ethnic Affairs Priority Statements and Agreement
94 Overseas Travel
94 Freedom of Information
97 Customer Commendations and Complaints
98 Heritage Management
98 Research and Development
98 Publications
99 Changes in Acts and Subordinate Legislation
99 Credit Card Use
69 Appendices
Appendix 1 Lucio Di Bartolomeo Ron Cunningham BE (Civil), MEngSc, ME(Aust), B.Comm. (Age 53) The State Rail Authority Board FCIT (Age 48) as at 30 June 2001 A Director since January 1997. Appointed Acting Chief Executive Current term expires on Paul Binsted on 9 June 2001. 30 June 2002. B.Ec., LLB (Age 47) During the last decade Mr Cunningham is currently Chairman since November 1998. Mr Di Bartolomeo has played a teacher with NSW TAFE in Current term expires on a key role in the rail reform which accounting and finance, having 31 December 2002. has occurred within New South previously been involved in the Mr Binsted is a Vice Chairman of Wales and Australia. He was Group accounting profession in the areas Salomon Smith Barney Australia, General Manager, Freight Rail for of taxation and auditing. In the Investment Bankers. He is a solicitor almost four years, from 1990, then 1970s, Mr Cunningham was and an Associate of the Securities spent a short time as Group General employed as a transport economist Institute of Australia. Mr Binsted has Manager, CityRail before becoming in the Commonwealth Department previously held senior roles at Chief Executive of State Transit in of Shipping and Transport and the Schroders Australia Limited and 1995. Mr Di Bartolomeo returned Industries Assistance Commission. Lloyds Corporate Advisory Services. to Freight Rail to oversee the He is also the Principal of several He has also previously held Board corporatisation process and private publishing and distribution positions at Rail Access Corporation, establishment of FreightCorp. companies operating in the Sydney Ports Corporation and During his time as Managing Australian tourism industry. Paringa Mining and Exploration Director of FreightCorp, the Mr Cunningham is a member Company plc. corporation has consistently of the 3801 Limited Board. recorded profitable results, Samantha Mostyn expanded the business nationally BA, LLB (Age 36) and implemented a considerable program of reform and productivity A Director since January 2000. improvement. Current term expires on 30 January 2003. Mr Di Bartolomeo has twenty four years’ experience in the rail/transport Ms Mostyn is currently Director of industry and has previously worked Corporate Development and Acting on South African railways. Currently, Director of Human Resources at Mr Di Bartolomeo is the President Optus. She previously held the of the Australasian Railways positions of Group Director, Human Association and Managing Director, Resources, Cable & Wireless plc Freight Rail Corporation. and Director of Government and Corporate Affairs at Optus. Prior to joining Optus in 1995, she was Communications Policy Adviser to Prime Minister Paul Keating, having previously advised former Ministers for Communications, Senator Bob Collins and Michael Lee MP. She is legally trained and practised commercial law at Gilbert & Tobin before advising government.
70 Joanne Rees Gabrielle Trainor Changes to the Board LLB (Age 45) LLB, MAICD (Age 44 ) During the year, the following changes to the Board have A Director since October 1999. Appointed a Director on occurred: Current term expires on 13 February 2001. • Mr Simon Lane resigned as 30 June 2002. Current term expires on Chief Executive and a Director 13 February 2003. Ms Rees is a consultant with the on 30 October 2000. Australian Securities & Investments Ms Trainor is a founding partner of •Mr Ron Christie was appointed Commission managing major John Connolly & Partners Pty Ltd, Acting Chief Executive and a litigation following recent significant a specialist government relations Director on 1 November 2000 corporate collapses in Australia. and corporate communications firm. and retired on 8 June 2001. She was previously a partner of Her background is in law, newspaper •Ms Joanne Curin resigned on several large Sydney law firms, journalism and government. She 9 January 2001. including managing partner of the is Director of the (Melbourne) •Ms Gabrielle Trainor was Canberra office of Phillips Fox for Docklands Authority (Chair, Risk appointed on 13 February 2001. a period of seven years. Ms Rees and Compliance Committee), the •Mr Lucio Di Bartolomeo was is a member of the Department Public Interest Advocacy Centre, appointed Acting Chief Executive of Information Technology and the Public Interest Law Clearing and a Director on 9 June 2001. Management Audit Committee and House, Barnardos Australia and the • Mr Anthony Sheldon resigned a member of that Department’s Land Australian Sports Drug Agency. She on 28 June 2001. Property Information Advisory Group. has served as a Director of the NSW Since the end of the year, Mr Anthony State Transit Authority and the Rail Anthony Shepherd Shepherd resigned as a Director on Access Corporation. She is the B.Comm. (Age 56) 10 August 2001. Commissioner of the AFL A Director since October 1999. (NSW/ACT) Commission. Resigned on 10 August 2001.
Mr Shepherd is the Deputy Chairman of Transfield Services Limited. He previously held the position of Chief Executive Officer of Transfield Project Development. Mr Shepherd is a member of the Australian Industry Group Defence Manufacturers Council, Vice President, Australia Council for Infrastructure Development, Advisor to the Managing Director of Transfield Holdings Pty Ltd and a Director of ADI Limited.
71 Appendices
Risk Management Professional Development State Rail’s risks are managed Board members are offered through the risk management opportunities for professional process developed by NSW development at State Rail’s expense. Treasury. The Board has established An induction process has been a number of arrangements to ensure developed which includes briefings it can monitor the management of on the organisation, corporate risks, including: governance issues and the • Establishing a Safety Committee legislative framework. to review safety risks; • Reviewing reports of internal and Board Committees external auditors which focus The Board, from time to time, on risk areas; and establishes committees to enable • Revising delegations for contracts detailed attention to be given to key and implementing regular areas and to ensure it meets its reporting for contracts over responsibilities. There are four $1 million. Board committees: • Appointments and Remuneration; In 2000-2001, the Board received a • Audit; quarterly report on the organisation’s • Major Projects; and risks and the management of • Safety. those risks. Each committee has a charter and Conflicts of Interest the minutes of the committee To ensure potential conflicts of meetings are provided to the Board, interest are identified at an early along with a short report from the stage, each director completes Committee Chair. a register of interests, which is updated annually. The Board has The Glenbrook Committee was adopted procedures to manage established to advise on matters conflicts including declaration of relating to the inquiry process the potential interest at the Board following the Glenbrook rail accident. meeting and, if material is of Following the release of the Final personal interest, the particular Report of the Special Commission director will not be involved in of Inquiry, the work of the committee discussion on the matter or vote. on matters relating to the Final In addition, the Board has a Code Report has been included in the of Conduct. Safety Committee Charter.
The Secretary of the Board and each of its committees is Margot Maasakkers, Corporate Secretary.
72 Committee Membership Charter Appointments Samantha Mostyn (Chair) Recommends appointments to key positions reporting to the Board, and Remuneration Paul Binsted including the Chief Executive and Corporate Secretary. Joanne Rees Reviews the performance and remuneration of the Chief Executive Gabrielle Trainor and Senior Management.
The Committee consists entirely of non-executive independent directors. Audit Ron Cunningham (Chair) Reviews the effectiveness of the internal and external audit programs. Joanne Rees Ensures internal controls and risk management structures are appropriate. Reviews draft financial statements. Reviews significant recommendations of the internal and external auditors. Reviews any changes in accounting practices and policies.
The Committee consists of a majority of non-executive independent directors. An independent external member is currently being sought.
Both the internal and external auditors have direct access to the committee and may discuss any matters that arise in connection with their audits. Major Projects Joanne Rees (Chair) Reviews contractual and commercial issues in respect of significant Committee Paul Binsted* and selected projects. Lucio Di Bartolomeo* Peter Scarlett The Committee consists of at least one non-executive director and Ron Cunningham (Alt*) the Chief Executive. A non-executive director chairs the Committee. Safety Anthony Shepherd (Chair) Addresses due diligence issues with respect to safety and active work. Ron Cunningham Aims to improve safety attitudes and behaviour. Paul Binsted Monitors and reviews the implementation of the recommendations Alex Claassens from the Final Report of the Special Commission of Inquiry into the Lucio Di Bartolomeo Glenbrook Rail Accident released on 11 April 2001. Owen Henry The Committee consists of a majority of non-executive directors, the Chief Executive, the Executive Director Safety and a member of State Rail’s operational staff. Other executives attend by invitation.
73 Appendices
Board Meetings Attendance Appointments & Remuneration Name Board Committee Eligible Attended Eligible Attended Paul Binsted 11 11 2 2 Ron Cunningham 11 11 – – Lucio Di Bartolomeo* 1 1 – – Samantha Mostyn 11 10 2 2 Joanne Rees 11 10 2 – Anthony Shepherd 11 7 – – Gabrielle Trainor** 6 6 – – Ron Christie*** 7 7 – – Joanne Curin**** 4 1 – – Simon Lane***** 3 3 – – Anthony Sheldon****** 10 5 2 1
* Appointed 9 June 2001 ** Appointed 13 February 2001 *** Appointed 1 November 2000; retired 8 June 2001 **** Resigned 9 January 2001 ***** Resigned 30 October 2000 ****** Resigned 28 June 2001 # This Committee was integrated with the Safety Committee on 31 May 2001 ## Alternate Director
74 Major Audit Glenbrook Projects Safety Committee Committee# Committee Committee Eligible Attended Eligible Attended Eligible Attended Eligible Attended – – 3 3 5 3 3 2 3 3 – – 2## 2 3 3 – – – – – – – – – – – – – – – – 3 3 3 3 5 4 – – – – – – – – 3 3 – – – – – – – – – – 1 1 1 1 3 1 2 2 – – – – – – – – 2 2 4 4 – – – – – – – – 3 –
75 Appendices
Appendix 2 10 A director should not engage in conduct likely to bring discredit Board Code of Conduct upon the organisation. 1 A director must act honestly, in 11 A director has an obligation, good faith and in the best interests at all times, to comply with the of the organisation as a whole. spirit, as well as the letter, of the 2 A director has a duty to use due law and with the principles of care and diligence in fulfilling the this Code. functions of office and exercising the powers attached to that office. 3 A director must use the powers Appendix 3 of office for a proper purpose, Comments on Staff Code and in the best interests of the of Conduct organisation as a whole. Minor amendments were made 4 A director must recognise that to State Rail’s Code of Workplace the primary responsibility is to Standards during the year. A draft the organisation’s stakeholders Workplace Standards document has as a whole but should, where been developed and will be placed appropriate, have regard for on the State Rail Intranet. The the interests of all stakeholders. document summarises the Code 5 A director must not make improper of Workplace Standards. It also use of information acquired as makes specific references to State a director. Rail policies which provide more 6 A director must not take improper detail to assist staff and managers advantage of the position of director. in understanding their rights and 7 A director must not allow personal responsibilities regarding appropriate interests, or the interests of any and acceptable behaviour. associated person, to conflict with the interests of the organisation. 8 A director has an obligation to be independent in judgement and actions and to take all reasonable steps to be satisfied as to the soundness of all decisions taken by the Board. 9 Confidential information received by a director in the course of the exercise of directors’ duties remains the property of the organisation from which it was obtained and it is improper to disclose it, or allow it to be disclosed, unless that disclosure has been authorised by that organisation, or the person from whom the information is provided, or is required by law.
76 Appendix 4
Major Works in Progress The uncapitalised costs of major works in progress as at 30 June 2001 were as follows: Completion Project $000 due Installation of Closed Circuit TV on stations 13 784 2002 Millennium Trains 11 631 2003 Bondi Junction station access and general upgrade 9 342 2002 Integrated ticketing project 6 660 2002 Station appearance enhancement program 6 592 2006 Rollingstock upgrading 5 044 2002 New engines for XPT power cars 4 593 2002 Train crew scheduling and rostering system 3 327 2002 Allawah station access upgrade 2 596 2002 Katoomba station access upgrade 2 025 2002 Upgrading servicing facilities for Millennium Trains 1 548 2002 Engadine station access upgrade 1 494 2002 Regents Park station access upgrade 1 479 2002 Caringbah station access upgrade 1 362 2002 Infrastructure improvements 1 300 2008 IT systems 1 151 2002 City underground stations fire management system 1 137 2002 On-train and station passenger information system 1 120 2006 Total 76 185
77 Appendices
Appendix 5
Five Year Comparative Income and Expenditure Statement 96/97 97/98 Actuals Actuals $000 $000 Revenues Passenger services 411 262 434 083 Social program funding 507 501 495 525 Capital and other government contributions 413 578 458 045 Anciliary services to other NSW rail entities 137 608 121 901 Rents 25 495 26 127 Asset disposals 1 362 2 081 Interest 1 367 2 872 Other (non operating) 42 484 27 849 Total Revenue From Ordinary Activities 1 540 657 1 568 483 Expenses Payroll costs 422 259 440 474 Employee entitlements 145 151 177 308 Severance payments 3 024 15 297 Workers’ compensation 38 727 41 271 Rail acess fees 419 047 332 609 Operating lease rentals (including rail access fees) Contract and general expenses 309 868 350 548 Consultants 1 403 855 Depreciation 190 639 171 017 Assets revaluation decrements 03 565 Assets written off or sold 59 060 36 602 Inventory write down or losses 04 572 Borrowing costs 20 948 18 164 Other financing expenses 1 915 3 812 Audit fees 449 349 Board members’emoluments 159 211 Doubtful debts expense 170 2 707 Capital grants to Rail Infrastrcture Corporation 0 7 319 Total expenses from ordinary activities 1 612 819 1 606 680 Net surplus/(deficit) from ordinary activities (72 162) (38 197) Abnormal items (11 756) (7 187) Extraordinary items –– Operating Surplus/(deficit) (83 918) (45 384)
78 98/99 99/00 00/01 00/01 01/02 Actuals Actuals Actuals Budget Budget $000 $000 $000 $000 $000
457 292 517 850 534 373 543 781 553 398 483 650 478 900 593 116 590 620 595 083 490 923 481 512 596 961 491 482 549 326 102 308 81 688 82 717 82 596 46 193 25 857 30 416 29 477 25 956 37 361 4 354 21 230 969 48 336 3 275 1 798 1 293 1 500 1 531 34 541 56 002 49 429 36 238 39 688 1 602 200 1 669 396 1 888 335 1 772 221 1 822 916
445 422 431 481 505 677 477 077 503 087 168 042 130 237 178 312 159 324 184 153 25 984 9 047 5 488 7 399 8 614 17 905 25 590 43 273 24 218 24 563
343 257 362 617 381 993 391 651 386 666 353 754 366 800 398 135 387 414 403 004 790 587 391 568 249 150 851 153 006 154 726 162 146 164 611 00000 73 423 48 005 88 781 47 425 30 304 121 0 37 1 3 21 057 13 412 16 847 16 137 14 837 264 1 152 264 264 264 376 353 397 350 450 245 232 243 270 270 55 371 500 99 0 38 725 42 372 99 216 77 954 77 036 1 640 271 1 585 262 1 874 280 1 752 297 1 798 111 (38 071) 84 134 14 055 19 924 24 805 51 600 – ––– ––––– 13 529 84 134 14 055 19 924 24 805
79 Appendices
Appendix 6
Performance in Paying Accounts The performance in paying trade creditor accounts during the year ended 30 June 2001 was as follows:
Current Up to 30 (Paid days on time) overdue 1st quarter Number of accounts (%) 69 27 Amount paid ($m) 277 32 2nd quarter Number of accounts (%) 59 35 Amount paid ($m) 133 35 3rd quarter Number of accounts (%) 76 19 Amount paid ($m) 235 43 4th quarter Number of accounts (%) 73 23 Amount paid ($m) 258 25 Total for 2000-01 ($m) 903 135
During the year 69% of accounts (by number) were paid on time compared with a quarterly target of 90%.
The prompt processing of accounts was adversely affected by system problems, late submission of certified invoices and short-term funding shortfalls.
Several initiatives are planned to enable the achievement of the 90% target in 2001-2002. These include the expansion of the use of purchasing cards to pay low value invoices, the monthly reporting of late invoices to divisional management and the creation of a Business Services division to centralise all accounts payable processing.
No penalty interest was paid during the year ended 30 June 2001, under clause 18 of the Public Finance and Audit Regulation 2000, due to the late payment of any supplier’s account.
Appendix 7
Liability Management Performance In the year ended 30 June 2001, the generalised cost of funds in State Rail’s debt portfolio was 7.08%. During the same period the generalised cost of funds of a risk-neutral benchmark portfolio (determined in accordance with the Treasurer’s guidelines) was 6.54%.
Appendix 8
Investment Performance In the year ended 30 June 2001, State Rail earned 5.82% on surplus funds invested. During the same period the comparable Treasury Corporation ‘hour-glass’ investment facility earned 6.01%.
80 31-60 61-90 Over 90 days days days Total overdue overdue overdue paid
211100 311314
321100 927186
212100 747296
211100 114289 20 8 19 1085
81 Appendices
Appendix 9
Land Values and Land Disposal Value as at Value as at 30.6.2001 30.6.2000 Land use $000 $000 Rail infrastructure or stations 2 314 575 2 171 267 Strata (air space) leased to tenants 11 118 10 216 Residences 10 827 9 742 Surplus land 70 888 76 570 Total land owned or occupied 2 407 408 2 267 795
The total value of land owned or There was no family connection or occupied is higher than the land business association between any value recognised in the balance property purchaser and the person sheet. The latter value excludes responsible for approving the land under rail infrastructure disposal of the property. because, despite its being owned Properties were disposed of during by State Rail, it is controlled by the 2000-2001 to raise funds for Rail Infrastructure Corporation and Treasury to fund part of State Rail’s is therefore not recognisable as capital works program. an asset. Applications for access to During 2000-2001, 45 property documents concerning details of sales were completed, yielding properties disposed of during the gross proceeds of $88.532m. year may be made in accordance Contracts were exchanged on one with the Freedom of Information further property with a value of Act 1989. $3,000.
Of the 45 properties sold, 11 were disposed of by public auction, 2 by tender and 32 by private treaty. Of the last group, 16 were sold to government bodies, 13 were sold to adjoining landowners and 3 were sold to others. Private treaty sales were all conducted in accordance with State Rail policy and none exceeded $5m.
82 Appendix 10
Insurance Activities State Rail manages its risk exposure via a significant risk management program in conjunction with a fully integrated insurance program, a program developed and evolving as a blend of self-insurance and risk transfer to commercial insurers.
The risk and insurance programs encompass the major areas of risk exposure and their impact on people, property, liability and environment to protect the assets and income and secure the safety of all parties throughout State Rail.
The joint risk and insurance programs are constantly being developed and refined to reflect the most appropriate response to the risks faced.
The year 2000-2001 has seen the successful collection of $9m in relation to the hail damage which occurred in April 1999. This involved significant negotiation in the face of the collapse of HIH, State Rail’s major insurer at the time of loss.
A significant achievement for State Rail has been the establishment of long term insurance coverage at a fixed premium. Won against a backdrop of incurred losses and a hardening market, this tangibly supports State Rail’s risk management strategies into the future.
Appendix 11
Consultants Consultant Project Cost ($) Contracts exceeding $30 000 Indec Consulting Pty Ltd Review of staff and structure 99 000 David Sheedy Pty Ltd Rollingstock conservation management plan 96 000 Goodman MacKay Pty Ltd Rollingstock conservation management plan 73 000 Total contracts exceeding $30 000 (3 contracts) 268 000 Contracts under $30 000 (11 contracts) 132 000 Total expenditure in 2000-2001 (14 contracts) 400 000
Appendix 12
Funds Granted to Non-Government Organisations Grantee Amount ($) NSW Railway Employees’ Welfare Fund 20 000 NSW Railway Band 7 000 Parramatta Street Youth Project Inc 5 000 NSW Transport Retired Employees’ Association 2 500 Wesley Mission 2 000 SRA & STA Anzac Day Committee 950 NSW Railway & Tramway Museum 750 Mission Australia – Heart Stopper 2001 500 MS Society 100 Total granted in 2000-2001 38 800
83 Appendices
Appendix 13 IPART’s determination, handed down State Rail programs have been in June 2001, granted State Rail an identified as supporting Government State Rail Pricing Policies increase of 3.3%. State Rail applied social program ‘codes’ in the areas CityRail the increased fares from 1 July 2001. of public transport, urban/non urban The State Government and the passenger services, transportation Countrylink Independent Pricing and Regulatory of students and social security Countrylink fare levels are set by the Tribunal (IPART) determine CityRail and welfare. Government each year and include passenger fares. State Rail is required a range of concession fares for to make an annual submission pensioners, senior citizens, students Appendix 15 concerning CityRail fares to IPART, and other groups. These fare levels which determines maximum fare Responses to significant issues range from free travel to 50% off the levels for the following period on raised by the Auditor-General normal published fare. the basis of the CityRail submission, Responses to significant issues raised submissions from user groups and Countrylink also offers discounts by the Auditor-General in his report other information. to attract non-concessional business. on the 1999-2000 year under section These discounts are offered in the off- 43(2) of the Public Finance and Audit Subsequent to State Rail’s peak periods between school holidays Act 1983 are set out below. March 2000 submission to IPART and are yield managed to maximise concerning CityRail fares for the 1. Revenue accounting the revenue from the fares offered. 2000-2001 period, IPART handed system problems down an 8.1% weighted average fare Countrylink fares have remained The audit noted serious deficiencies increase. This increase was granted unchanged since 19 July 1999. in Countrylink’s revenue accounting to compensate State Rail for the systems and related internal controls. effects of the Goods and Services The CityRail revenue control account Appendix 14 Tax introduced from 1 July 2000. reconciliation procedures were also Government Funding and found to have broken down. Adult Single fares increased between Social Programs $0.20 and $2.00 with most Sydney Response Government Community Service Suburban Adult Single fares not Countrylink’s revenue accounting Obligation (CSO) funding is provided increasing more than $0.40. Adult system is now stable. A project to to State Rail. The Transport Off-Peak fares increased between develop a front end solution is under Administration Act allows the Minister $0.20 and $2.00. Adult Weekly fares way. New CityRail revenue control for Transport to direct State Rail increased between $1.40 and $7.00. account reconciliation procedures to provide services that would not Weekly fare increases within the have been instituted and documented otherwise be commercially viable and Sydney Suburban area did not and are operating satisfactorily. allows State Rail to recoup the net exceed $3.00. costs of these services. 2. Insufficient controls over plant State Rail applied this 8.1% fare and machinery The CSO payments also permit State increase on 1 July 2000. The audit noted again that controls Rail to offer targeted concessions over the physical security and In March 2001 State Rail delivered pricing (low fares). recording of plant and machinery its 2001-2002 CityRail fares review State Rail received a total of $543.3 need to be strengthened. submission to IPART. In this million in core CSO contract payments submission State Rail sought a Response in 2000-01, $465.3 million for CityRail weighted average fare increase The issue primarily relates to computer and $78.0 million for Countrylink. In in line with inflation of 3.3%. State equipment. A stocktake of information addition, State Rail received $49.8 Rail’s submission also included a technology equipment was performed million in funding to cover the net cost draft Customer Service Commitment in May 2001 and the results are being of the Olympic Games. outlining CityRail’s commitment to reconciled with previous records. A its customers. State Rail’s CSO payments for proposal for the electronic tracking of 2001-2002 will be $595.1 million. personal computers is currently being assessed. The majority of computer equipment is located in a security- controlled building.
84 3. Excessive overtime In November 2000, a State Rail Safety • Juvenile Justice Mediation The audit noted that while the number Steering Committee was convened to Sessions (Graffiti/Vandalism); of significant overtime payments to monitor safety performance and to •Membership of the Institute of individual employees had decreased, ensure that improvements and Public Administration; high levels of overtime continued to corrective actions are taken, where •Transport Coordination Committee be worked in Countrylink and in necessary, in a timely manner. It meets (Department of Transport); Broadmeadow Train Control. twice monthly and comprises the Chief • Integrated Ticketing Project Executive, the Executive Directors of Steering Committee (Department Response Safety, Capital Works & Development of Transport); Additional staff have been recruited in and Human Resources, the Chief •Infrastructure Coordination Group both areas to obviate the need for the Operations Manager, the General (Premier’s Department); working of overtime. The full impact of Managers of Station Operations and •Parramatta Rail Link Company this will not be realised until 2001-2002. Passenger Fleet Maintenance and board 4. Unauthorised payroll other key safety personnel. • Joint Working Group on Developer expenditure Contributions for Transport The Rail Improvement Coordination The audit noted the continuing non- (Department of Urban Affairs and group was established by the authorisation of payroll expenditure, Planning); Coordinator General of Rail in June in breach of the Public Finance and •Warren Centre Advisory Panel; 2000. It meets weekly and comprises Audit Act 1983 and the Treasurer’s • Membership of the NSW State representatives of executive Directions. Chamber of Commerce; management and operational staff •International Association of Public from both State Rail and the Rail Response Transport Executive Management Infrastructure Corporation. All payroll expenditure is now being Committee; authorised in accordance with The Olympic Steering Committee • Australasian Railway Association statutory requirements. met on a fortnightly basis to monitor (ARA) Board of Management; 5. Incorrect recovery of SES planning for rail transport for the Sydney •Urban Improvement Program officers’ motor vehicle costs 2000 Olympic and Paralympic Games. Steering Committee (Department The audit noted that the cost of SES Its task was completed successfully at of Urban Affairs and Planning); officers’ motor vehicle usage was the end of the Paralympic Games on • Project Control Groups for a range being recovered from them on a 29 October 2000. of projects including Parramatta notional rather than an actual Rail Link and North West Rail Link; The Heritage Committee provides cost basis. • Electrolysis Committee; advice and guidance on the • Wheel Rail Committee; Response management, conservation and • NSW Public Sector Corruption New procedures are in preparation restoration of State Rail’s heritage Prevention Committee; for implementation in 2001-2002. assets. The heritage community is • Australian Securities Investigations represented on the committee, which Commission, Australian Federal is chaired by State Rail management. Police, NSW Police Joint Appendix 16 Meetings are held quarterly. Investigative Committee; • Strategic Rail Safety Coordination Internal and External Committees The Millennium Train Executive Management Committee meets Committee; Internal monthly to monitor and review • Rail Safety Consultative Forum; State Rail’s Executive Management the project. • NSW Rail Industry Safety Forum; Committee met weekly to review • Sydney Underground Local operational issues, policy matters External Emergency Liaison Committee; and develop strategies for improving During 2000-2001 State Rail was and performance. This committee consists represented on the following external •Public Transport Authority. of the Chief Executive and the senior committees: management team. •Graffiti Solutions Taskforce (Premier’s Department); •Graffiti Strategy Taskforce (Premier’s Department);
85 Appendices
Appendix 17
Human Resources 17.1 Staff Numbers
Year Salaried Professional Tradesperson 1994-1995 6 781 1 792 1995-1996 6 993 1 588 1996-1997 5 038 776 1997-1998 3 742 595 1998-1999 3 137 465 1999-2000 2 976 430 2000-2001 3 033 430
17.2 Staff by Level Staff responded to Level Total Staff EEO data form Male Less than $26,276 49 18 46 26,276 to 34,512 2419 693 1636 34,513 to 38,582 2294 795 1779 38,583 to 48,823 3017 806 2769 48,824 to 63,137 815 347 717 63,138 to 78,921 304 149 258 More than $78,921 94 45 76 SES 25 8 20 Total 9017 2861 7301
17.3 Staff by Employment Category Permanent Full time 8362 2765 6954 Part time 565 85 286 Temporary Full time 44 3 24 Part time 0 0 0 SES 27 8 21 Casual 17 0 14 Other 202 Total 9017 2861 7301
17.4 CES/SES Bands Total Total CES/SES CES/SES Level as at 30.6.2001 as at 30.6.2000 6 5 3 5 2 2 4 4 4 3 8 4 2 6 12 1 1 3 CEO under S.11A 1 1 TOTAL 27 29 Women in SES positions 5 4
*CEO position listed under S.11A of the Statutory and Other Offices Remuneration Act 1975,
86 not included in Schedule 3A of the Public Sector Management Act 1988. Non-tradesperson Total 11 613 20 186 11 161 19 742 3 530 9 344 4 980 9 317 4 942 8 544 5 560 8 966 5 554 9 017
People from People with a Aboriginal or racial, ethnic, People whose disability requiring Torres Strait ethno-religious first language People with adjustment Female Islander minority groups was not English a disability at work 302030 783 23 226 145 31 8 515 22 234 154 39 13 248 27 213 140 50 21 98 4 83 62298 46 0 42 27175 18 06431 500010 1716 76 806 532 173 56
1408 75 780 509 170 55 279 1 24 21 2 1
20 02200 000000 600010 300000 000000 1716 76 806 532 173 56
87 Appendices
Appendix 18
SES Performance Reviews and Executive Remuneration No performance pay incentive payments were made to any State Rail staff engaged in the Chief and Senior Executive Service.
Name Ron Christie Position Acting Chief Executive Level 8 Period in position July 2000 – 8 June 2001 Total remuneration package $397,600 (includes special allowance for occupying dual role)
Mr Christie led the development Mr Christie introduced initiatives Mr Christie has continued to steer and delivery of State Rail’s Olympic to focus on daily operational issues, organisational improvements and transport commitments and in particular the implementation of released the One State Rail Delivery implemented key programs to safety measures to protect both Plan. Implementation of the plan has improve the delivery of rail services. rail workers and the travelling public. commenced and will occur over the These programs included improved These initiatives extended to the next two years. The plan provides passenger information and delivery of safe working training a better alignment of functional communication protocols and and the implementation of responsibilities and emphasises the development of internal accredited safety systems to the importance of safety and communication strategies to facilitate infrastructure inspection capital works planning with the improve the coordination and and maintenance. establishment of new divisions management of incidents. to manage these areas. The new Mr Christie continued to lead the Mr Christie made significant gains management structure will provide development of rail safety initiatives with the implementation of programs for a more responsive delivery by State Rail and the development to improve the presentation of rail of services reducing overlap of incident management protocols infrastructure which includes and duplication. to clearly define agency roles, in stations and trackside environs. particular State Rail and the NSW Mr Christie retired from State Rail Police Department. effective from 8 June 2001.
Name Geoff Amos Position General Manager, Station Operations Level 6 Period in position November 2000 – 30 June 2001 To tal Remuneration Package $210,120
Mr Amos commenced in the position to gain a more coordinated response on 13 November 2000 and initially to incidents and reduce rail downtime. focussed on revenue protection and Customer service and safety security issues. Two major operations issues continued to be addressed were implemented to reduce the and a review of complaint handling incidence of fare evasion and also procedures was carried out and an increase public awareness of State independent audit of contract security Rail’s commitment in this regard. and guard activities completed to A strategic analysis of security on improve service delivery. Workplace the rail network was completed to safety committees were established enable targeted programs to be and communication processes put implemented. In partnership with in place to increase safety awareness the Chief Operations Manager, on stations and generally improve the protocols observed by the Rail communications between frontline Coordination Centre were reviewed staff and management.
88 Name Ron Creighton Position Chief Operations Manager Level 6 Period in position March 2001 – 30 June 2001 Total remuneration package $193,800
Mr Creighton was instrumental in Safety continued to be a focus; A Safety Management System (SMS) the successful delivery of the special a safeworking rewrite has training package was developed event timetable for the 2001 Royal commenced. A revision of and introduced for frontline safety Easter Show. On-time running of safeworking rules to meet the staff. A revised competency based 89.9% was achieved for the year, recommendations of the Special training program was also developed an improvement of 3.7% on the Inquiry into the Glenbrook Accident and introduced for train crew (drivers previous year. Restructuring within (eg. SWU135) has also begun and and guards), train controllers and the division continued with an an Occupational Health, Safety and signallers, and staff position amalgamation of Countrylink Train Rehabilitation (OHS&R) program descriptions were reviewed to Crew/Coach Operations into Train developed to address workplace reflect the One State Rail structure. and Crew Operations. injuries with emphasis on the most frequent occurrences.
Name Peter Scarlett Position Executive Director, Finance Level 6 Period in position January 2001 – 30 June 2001 Total remuneration package $212,000
Mr Scarlett was initially seconded Mr Scarlett has led the development Mr Scarlett in partnership with to the Office of the Coordinator of complex and critical funding the Executive Director, Human General of Rail (OCGR) to assist proposals which have placed State Resources led the development the Government in solving critical Rail in a more favourable position to and implementation of the shared problems associated with the deliver key rail initiatives. Mr Scarlett services concept of providing NSW rail industry. Mr Scarlett has also reviewed critical finance corporate support services. has subsequently been occupying functions, developed and Mr Scarlett also made a major the dual role of Executive Director, implemented a more focused contribution to the delivery of Finance in both the OCGR and finance management structure Olympic related rail services by State Rail. and strengthened the audit function. developing funding options and strategies. Mr Scarlett in this dual role made a significant contribution to the development and release of the One State Rail Delivery Plan which is a significant program to improve State Rail’s delivery of rail programs and services.
89 Appendices
Name Arthur Smith Position Executive Director Capital Works & Development Level 6 Period in position March 2001 – 30 June 2001 Total remuneration package $207,645
Mr Smith held the position of Chief As Chief Operations Manager, Since March 2001, Mr Smith has Operations Manager until March Mr Smith was responsible for the taken responsibility for centralising 2001 when he was appointed the operations of State Rail across New the management and planning for Executive Director, Capital Works South Wales. Major achievements the $350 million annual capital works and Development. realised during this period include program undertaken by State Rail. the successful delivery of railway operations in the lead up to and delivery of the Olympic and Paralympic Games in September/October 2000 and the 2000-2001 New Year’s Eve rail operations.
Name Fran McPherson Position Executive Director, Human Resources Level 5 Period in position January 2001 – 30 June 2001 Total remuneration package $188,700
Ms McPherson was initially Ms McPherson led the development The development of human resource seconded to the Office of the and implementation of the One State strategies covering key areas such Coordinator General of Rail (OCGR) Rail Delivery Plan and in partnership as equity, aboriginal employment to assist the Government in solving with the Executive Director, Finance and the employment of staff with critical problems associated with the led the development and a disability were other initiatives NSW rail industry. Ms McPherson implementation of the shared introduced, together with a range has subsequently been occupying services concept of providing of development programs targeted the dual role of Executive Director, corporate support services. at senior and middle management Human Resources in both the Ms McPherson played a leading and frontline staff. Learning and OCGR and State Rail. role in the delivery of Olympic related development initiatives focused rail services by developing staffing on improving safety and customer strategies for adoption during the service were also developed. Olympic period to provide flexibility A major project completed during and ensure the delivery of critical the year was a complete review of State Rail services. human resources policies, which included consultative processes to meet both management and union requirements.
90 Name Geoff Deacon Position General Manager, Information Technology and Telecommunications Level 6 Period in position April 2000 – 30 June 2001 Total remuneration package $228,360 (includes recruitment allowance)
During 2000-2001 Mr Deacon led Mr Deacon was also a major Other projects to which Mr Deacon the development and implementation contributor in both the development made a significant contribution of major information technology of the Rail Coordination Centre, included the train operations projects. These included the rollout which played a significant role in management system to provide of CCTV camera coverage across the delivery of rail transport during computer visibility of trains on the the station network and the delivery the Olympic Games, and the design CityRail network; integrated ticketing; of 65 critical sites in time for the and implementation of a Disaster the design and specification for the Olympics Games to enable better Recovery Site for Train Control to establishment of a Disaster Recovery monitoring and management during minimise any risks during the Centre at Wynyard to back up the the event. An additional 15 station Olympic Games. Mr Deacon also computer centre at Chippendale, the passenger information plasma led the preparation of plans and the development of an IT infrastructure screens were also installed for letting of contracts to commence strategy and the calling of tenders the Olympic Games. development of a Management for the upgrade of State Rail Information System. The initial areas enterprise computing, data storage addressed will be Countrylink Yield and directory management. Management, Rail Coordination and Mr Deacon ceased in the position Human Resources. on 5 September 2001.
Name Rob Noyes Position General Manager, Corporate Services Level 5 Period in position November 1999 – 29 June 2001 Total remuneration package $189,150
Mr Noyes managed corporate support services across State Rail and assisted the Executive Director, Finance in the development of financial strategies. Mr Noyes ceased in the position on 29 June 2001.
91 Appendices
Appendix 19 A State Rail EEO Management iii) prepare policies, guidelines and Plan 2001-2003 is being developed. procedures for the control of Equal Employment Opportunity The plan will incorporate key EEO the risks. Equal Employment Opportunity has strategies and initiatives identified • taken measures to ensure a work been integrated across State Rail by the respective divisions. environment which is equitable businesses through a review and and free of discrimination, update of all HR policies and harassment and violence against programs. The current Appendix 20 women through education and implementation and communication training programs. of these policies will further enhance NSW Government Action Plan • continued to achieve a family- State Rail’s equity program. for Women friendly workplace which Key results for the area during State Rail supports the NSW recognises the variety of family 2000-2001 included: Government Action Plan for Women, needs of its employees, through • A Diversity Training Program which focuses on initiatives the development and was developed and delivered to specifically designed to improve the implementation of appropriate 94% of State Rail employees; economic and social participation human resource policies; • An increase in female of women in workplaces and the availability of a free child and representation within the community. In working to achieve elder care referral and information organisation from 18% to 21%; the objectives of the Plan, State service; and provision of • An Aboriginal station staff member Rail takes responsibility to ensure professional counselling services. secured a scholarship sponsored women’s needs are recognised in • supported the Women on Wheels by the Institute of Public its policies, workplace programs project, sponsored by the Administration Australia to and service delivery. Department of Women and the undertake the 2001-2002 Public Accordingly, State Rail has: Premier’s Council for Women, Sector Management Course; • increased the representation which aimed to promote • Members of the Aboriginal of women, particularly in the Government services to women Network Committee were trained traditionally male dominated in regional, rural and remote in basic computer skills and operational areas. Currently five New South Wales. project management; key positions within the Operations • Various training courses were State Rail continues to provide areas are held by women. made available to members of the greater safety on trains and reduce • improved the Spokeswomen Program including accidents at stations with improved representation/appointment initial contact counselling skills. lighting, CCTV surveillance and of female members on the State This program was designed to security patrols. Lifts and escalators Rail Authority of NSW Board. provide Spokeswomen with the have been installed at key locations Currently approximately 43% basic skills to assist and support to improve accessibility for mobility of the members are female in other female employees; impaired customers. Other initiatives comparison with 28% in the • The number of part-time include a platform gap reduction previous years. employees increased from 305 program which reduces the • initiated a project aimed at to 352. Women make up 53% incidence of trips and falls by supporting managers and of this figure, men 47%; passengers, particularly children. employees in the effective • Support programs such as Family These improvements have a management of pregnant Carelink are ongoing; and flow-on benefit to people with workers in operational roles. • Amendments in EEO legislation prams and strollers. The project aims to: pertaining to Carer’s i) identify and assess health Countrylink offers long distance rail Responsibilities Discrimination and safety risks for pregnant and coach services to country and were promoted and subsequent workers; interstate destinations and places an awareness training conducted for ii) identify any issues of direct or emphasis on greater safety and 50 line managers. Further training indirect discrimination; and comfort for women, families travelling will be organised by the respective with children and persons with divisions. special needs.
92 Appendix 21 • Become more involved with station-based events, projects and Privacy and Personal Protection festivities with particular relevance The Acting Chief Executive to ethnic communities including distributed a notice to all staff Aboriginal and Torres Strait outlining State Rail and staff Islanders, youth, older people obligations under the Privacy and and people with disabilities. Personal Information Protection Act •Promote CityRail services in 1998. The notice provided staff with the ethnic media with some practical information to ensure any advertisements translated into private/personal information is community languages. appropriately handled. The notice • Continue to provide discussed: apprenticeships, industrial • what is classified as personal traineeships and cadetships and information; encourage people from diverse •the principles of information cultural/ethnic backgrounds to protection including collection, apply. storage, use and disclosure; and • Review the Community Language • exemptions. Allowance for staff who use A draft Personal Information Policy community language skills has been developed and will be to assist customers. distributed with all other Human During 2000-2001 the main Resources policies following the strategies involved: consultation and approval process. • Helping to promote seminars on behalf of the Association of Non-English Speaking Appendix 22 Background Women of Australia Ethnic Affairs Priority Statement and the Women’s Rights Action and Agreement Network Australia; State Rail is developing an Ethnic • Provision of information to staff Affairs Policy that reflects the on Skillmax and Adult Migrant organisation’s commitment to Work Experience Program; ensuring that the provision of • Delivery of education and training assistance and accessibility programs focused on harassment of services to all customers are prevention and non-discriminatory delivered without partiality or work practices and service unfairness, as well as promoting delivery; and a discrimination free workplace • Supporting and sponsoring that assures the fair treatment community events to maximise of employees. appreciation of ethnic and cultural diversity, including celebration of State Rail’s main ethnic affairs NAIDOC Week and Anzac Day. objectives are to: •Target the whole NSW community, particularly schools and in areas with high ethnic populations, to reinforce safety at stations and safer rail travel.
93 Appendices
Appendix 23
Overseas Travel 2000/01 – Trips completed Class of Officer and Position Travel Details Dates Travel Expenditure John Comb To present State Rail’s 27/10/00 Business $736.00 Insurance Manager insurance renewal to to 03/11/00 international underwriting panels in the United Kingdom. Barry Lovat To review the combined 20/10/00 Business $17,577.00 Project Manager testing of the Millennium to 30/10/00 Millennium Train Train electrical equipment David Inwood in France and evaluate the Manager Maintenance & operation of the single air Operations Millennium Train spring bogies in Switzerland.
Appendix 24
Freedom of Information During 2000-2001 State Rail received 174 Freedom of Information (FOI) applications. This represents a substantial increase on the 1999-2000 figure of 66 applications.
The majority of applications were processed within the statutory 21 day period. Regrettably, several applications were delayed over the Olympic period. This delay accounted for all but one late matter.
The FOI Officer was located in Corporate Legal Services until late in the reporting period. The Officer is now located in Communications and Marketing, and the role has been expanded to include applications for personal information under the Privacy and Personal Information Protection Act 1998 (NSW).
The FOI Officer is located at Level 6, 18 Lee Street, Chippendale NSW 2008 (PO Box K349, Haymarket NSW 1238); and may be contacted on ph: 8202 2323 during business hours.
FOI Statistics, NSW Freedom of Information Act, Data between 1 July 2000 and 30 June 2001 inclusive.
Section A Numbers of new FOI requests – Information relating to numbers of new FOI requests received, those processed and those incomplete from the previous period.
FOI requests Personal Other Total A1 New (including transferred in) 107 67 174 A2 Brought forward 1 2 3 A3 Total to be processed 108 69 177 A4 Completed 79 51 130 A5 Transferred out 6 0 6 A6 Withdrawn 11 10 21 A7 Total processed 96 61 157 A8 Unfinished 3 17 20
94 Section B What happened to completed requests? (Completed requests are those on line A4) Result of FOI request Personal Other B1 Granted in full 49 42 B2 Granted in part 12 6 B3 Refused 18 3 B4 Deferred 0 0 B5 Completed 79 51
Section C Ministerial Certificates – number issued during the period. C1 Ministerial Certificates issued 0 –
Section D Formal consultations – number of requests requiring consultations (issued) and total number of formal consultation(s) for the period. D1 Number of requests requiring formal consultations 11 14
Section E Amendment of personal records – number of requests for amendment processed during the period. Result of amendment request Total E1 Result of amendment – agreed 1 E2 Result of amendment – refused 0 E4 Total 1
Section F Notation of personal records – number of requests for notation processed during the period. F1 No. of requests for notation 0
Section G FOI requests granted in part or refused – Basis of disallowing access – Number of times each reason cited in relation to completed requests which were granted in part or refused. Basis of disallowing or restricting access Personal Other G1 Section 19 (application incomplete, wrongly directed) 0 0 G2 Section 22 (deposit not paid) 0 0 G3 Section 25 (1) (a1) diversion of resources) 0 0 G4 Section 25 (1) (a) (exempt) 12 3 G5 Section 25 (1) (b), (c), (d) (otherwise available) 0 1 G6 Section 28 (1) (b) (documents not held) 15 5 G7 Section 24 (2) – deemed refused, over 21 days 4 1 G8 Section 31 (4) (released to Medical Practitioner) 1 0 G9 Totals 32 10
Section H Costs and fees of requests processed – during the period (those included in lines A4, A5 and A6). Assessed costs FOI fees received H1 All completed requests $6,035.00 $4,167.00
Section I Discounts allowed – numbers of FOI requests processed during the period where discounts were allowed. Type of discount allowed Personal Other I1 Public interest 0 0 I2 Financial hardship – pensioner/child 4 2 I3 Financial hardship – Non profit organisation 0 0 I4 Totals 42 I5 Significant correction of personal records 0 0
95 Appendices
Section J Days to process – number of completed requests (A4) by calender days (elapsed time) taken to process. Elapsed time Personal Other J1 0-21 days 63 36 J2 22-35 days 16 14 J3 Over 35 days 0 1 J4 Totals 79 51
Section K Processing time – number of completed requests (A4) by hours taken to process. Processing hours Personal Other K1 0-10 hrs 79 51 K2 11-20 hrs 0 0 K3 21-40 hrs 0 0 K4 Over 40 hrs 0 0 K5 Totals 79 51
Section L Reviews and Appeals – number finalised during the period. L1 Number of internal reviews finalised 4 L2 Number of Ombudsman reviews finalised 2 L1 Number of District Court appeals finalised 0
Details of Internal Results – in relation to internal reviews finalised during the period. Bases of internal review Personal Other Grounds on which Upheld* Varied* Upheld* Varied* Internal review requested L4 Access refused 0000 L5 Deferred 0000 L6 Exempt matter 0013 L7 Unreasonable charges 0000 L8 Charge unreasonable incurred 0 0 0 0 L9 Withdrawn 0000 L10 Totals 0003 * Note: relates to whether or not the original agency decision was upheld or varied by the internal review.
96 Appendix 25 Inside the carriage – 9% The largest number of complaints The biggest concern for customers in concerned the following issues: Customer Commendations this category related to overcrowding, Staff – 20% and Complaints caused by there being insufficient There was an increase in the number CityRail carriages on the run or a reduction of complaints about staff due to the During 2000-2001 4% of feedback in the number of carriages on the run. enforcement of booking and luggage (594 cases) were compliments Customers also reported inconsistent restrictions. received from CityRail customers. carriage temperatures and litter on Fares and Ticketing – 18% Compliments commonly related carriages. CityRail has an active Customers most frequently reported to staff helpfulness. program which encourages reporting concerns with the restrictions on use of dirty train carriages which accounts of their Pension Travel Vouchers due 14,400 complaints were recorded, for this number of complaints. a decrease of 14% compared to to a quota system for bookings. the previous year (16,685). These Announcements – 9% Operations – 13% complaints were registered by phone The biggest area of complaint Customer concern centred on and e-mail through the Transport in this category was the lack of on-time running and delays. Infoline. Some variation from last year announcements or confusing was expected as a new system was announcements. Luggage – 10% implemented for registering Due to the limited luggage space Over 3% of complaints received complaints. The Sydney 2000 Olympic on board the XPT and Xplorer trains, related to other passengers’ Games period saw a drop in the there was an increase in complaints behaviour. number of complaints registered. due to restrictions being imposed. State Rail’s Government Relations unit The largest number of complaints registered 2,779 Ministerial matters concerned the following issues: during 2000-2001. Train service – 18% Late trains and skipped stops were Countrylink the most frequently reported areas During 2000-2001 5% of feedback of complaint Terminated trains was (265 cases) were compliments the third area of concern. received from Countrylink customers: the majority acknowledged staff On the platform –11% helpfulness and courtesy. Customers most frequently complained about unhelpful staff and Countrylink received 5,103 complaints, cancellation of trains in this category. compared to 9,241 the previous year, which represents a decrease of 44%. Ticketing – 11% These complaints were registered by In relation to ticketing, customers phone, e-mail and in writing. complained most frequently about unhelpful staff, ticket disputes, queues Some variation from last year was and the ticket office being closed. expected as a large number of complaints were received in the previous year due to the installation of a new telephone system and a Y2K-compliant reservation system.
97 Appendices
Appendix 26 Appendix 27 •Tickets to Ride brochure; • Accessing CityRail brochure; Heritage Management Research and Development • DayTripper brochure, postcard State Rail is the owner of the largest Working with the Department of and poster; collection of heritage assets of any Transport, State Rail is continuing to •Student RailPass brochure State Government agency and is develop a detailed analysis of current and bookmark; one of the State’s leaders in heritage and future passenger demand • Easter Show signs; management. requirements. • Easter Show brochures and These assets include structures, This enables the development of posters; disused (non-essential) infrastructure, future timetables, which undergo •Mini-timetables – Olympic and rollingstock and track vehicles, operational simulations to test various Intercity services; machinery and equipment, antique infrastructure options in relation to • South Coast electrification furniture and clocks, artworks, small the proposed future train plan. This brochures and posters; artefacts, historic records and complex modelling is used to confirm • East Hills quadruplication brochure archaeology. the optimum operating pattern and and poster; infrastructure configuration. •Fare evasion brochure and poster; The programs for buildings and and moveable heritage items have State Rail is working with the • Attraction, Travel, Destination and reached the end of their second Rail Infrastructure Corporation to Hotels information brochure. year and are on schedule. The understand the implications of new conservation and maintenance of technology in train control and Countrylink State Rail’s heritage buildings and signalling. Considerable research • Springtime Gardens & Flower structures is continuing, with large and development effort has also been Festivals brochure; restoration projects being undertaken invested in the development of the •Floriade in Canberra brochure; in many places around New South new Millennium Train. • Countrylink Travel Centre flyers; Wales including Petersham and • Rail Escapes brochure (two Millthorpe stations. versions – summer and winter); Appendix 28 •Discovery Pass flyer; The assessment of State Rail’s Publications •Countrylink Business Plan brochure; moveable heritage collection is External publications listed were • XPT & Xplorer brochure; nearing completion and management published during the reporting period. •Mainstream Holidays 2001-2001 plans are being developed. In addition brochure; a Conservation Management Plan State Rail •Group Deals flyer; is being established for the entire 1999-2000 Annual Report •Travel Club brochure; heritage rollingstock collection of •Monet & Japan and Gold & CityRail approximately 300 vehicles, which Civilisation holidays brochure; •Wonderlink posters/flyers; will assist with their ongoing • Autumn in Victoria flyer; • Blue Mountains poster; management and conservation. • Sales Bulletin flyer; • Sydney City maps; • International Rail Holidays State Rail acknowledges its legal •TravelPass posters; 2002-2003 brochure; obligations towards its heritage and •CityRail Olympic timetables; •Melbourne’s Great Indoors Winter appreciates many of the assets are • CityRail timetables; Escapes flyer; held in high regard by the public, •Timetable posters; •Timetable & Fares booklet employees and former employees, •Olympic timetable posters; (effective April 2001); railway preservation groups and • A3 tear off maps of CityRail •Timetable flyers (4 versions); historical societies. network/location maps • Countrylink Network map; • CityRail Sydney and Beyond The Heritage and Conservation •Olympic Ticket Wallets; and brochure; Register may be inspected by • Olympic Information Guide. •Travelling Safely poster; appointment. •TravelPass posters; •Service Changes posters;
98 Appendix 29 The Transport Administration Appendix 30 Amendment (Rail Management) Changes in Acts and Subordinate Credit Card Use Act 2000 was assented to on Legislation Credit card use in State Rail has been 6 December 2000 and the Act The Transport Administration in accordance with the requirements commenced (with the exception of (Amendment) (Parramatta Rail Link) of Premier’s Memoranda and schedule 4) on 1 January 2001. This Act 2000 commenced on 1 July 2000. Treasurer’s Directions. Act effected changes to the Transport This is the enabling legislation for the Administration Act 1988 and other construction of the Parramatta Rail Acts. The object of the Act is to revise Link between Parramatta and rail management in New South Wales Chatswood. following reports from the Coordinator The Occupational Health and General of Rail and recommendations Safety Act 2000 was assented to made by the Commissioner of the but by 30 June 2001 it had not yet Special Commission of Inquiry into the commenced. This Act repeals the Glenbrook Rail Accident. Schedule 3 OH&S Act 1983. It includes higher of the Act changed the management penalties for employers who breach of the State Rail Authority. The its provisions and requires employers Authority: to have a higher level of consultation •is required, as its principal with workers regarding OH&S matters. objective, to deliver safe and reliable railway passenger services The Anti-Discrimination Amendment in an efficient, effective and (Carers Responsibilities) Act 2000 financially responsible manner; amends the Anti-Discrimination Act • is required to act in the best 1977 to render unlawful discrimination interests of the network as a whole; on the basis of a person’s and responsibilities as a carer, including • is subject to Ministerial control, discrimination during the course without the previous exception of employment. that a direction which the Board The Transport Administration (Staff) considered was not in the Regulation 2000 commenced on commercial interests of the 1 September 2000. Authority need not be complied with unless the Treasurer approved a reimbursement of the financial loss concerned from public revenue.
The Workers Compensation Legislation Amendment Act 2000 was assented to on 6 December 2000 and parts of it have commenced.
99 Index
80 Accounts Payable Performance 84 Government Funding and 17 Safety Social Programs 69 Appendices 84 Significant Issues raised by the Auditor-General 68 Auditor-General’s report 98 Heritage Management 86 Staff by Employment Category 86 Human Resources 16 Board (The) 86 Staff by Level
23 Improving Access 67 Statement by Members of Board 86 CES/SES Bands 40 Statement of Cash Flows 4 Chairman’s Report 1 Letter to the Minister 38 Statement of Financial 99 Changes to Acts and 82 Land Values and Land Disposal Performance Subordinate Legislation 39 Statement of Financial Position 1 Charter 77 Major Works in Progress 2 Statement of Purpose 8 Acting Chief Executive’s Report 21 Millennium Train 2 Statement of Values 76 Code of Conduct – Board 3 Structure 35 Network Maps 76 Comments on Code of Conduct 32 Sydney 2000 Olympic – Staff 25 Noise Management and Paralympic Games 97 Customer Commendations 83 Non-Government Organisations Transport Task and Complaints – Funds Granted
85 Committees – Internal and 41 Notes to the Accounts 22 Train Maintenance and External Presentation
83 Consultants 20 On-time running – CityRail 23 Ticketing
25 Contaminated Land 20 On-time running – Countrylink 17 The Year in Review Management 94 Overseas Travel 25 Waste Management 25 Environmental Performance 14 Organisational Structure 92 Women – NSW Government 92 Equal Employment Opportunity Action Plan for Women 12 Performance Indicators 93 Ethnic Affairs Priority Statement 84 Pricing Policies and Agreement 93 Privacy and Personal Protection 88 Executive Remuneration 98 Publications 24 Financial Overview 98 Research and Development 37 Financial Statements
94 Freedom of Information
100 designed by Miller Hare Contact Details State Rail Authority of New South Wales Head Office 18 Lee Street Chippendale NSW 2008 PO Box K349 Haymarket NSW 1238 Telephone (02) 8202 2000 Fax (02) 8202 2111 www.staterail.nsw.gov.au
CityRail For timetables and service information call the Transport Infoline 131 500 between 6am and 10pm seven days a week; Interactive Voice Response 24 hours a day Teletypewriter service for hearing and speech impaired customers 1800 637 500 www.131500.com.au www.cityrail.nsw.gov.au
Countrylink For timetables and reservations call: Countrylink Central Reservation Centre 13 22 32 between 6.30am and 10.30pm seven days a week Countrylink Holidays 13 28 29 between 9am and 5pm Monday to Friday, and between 9am and 2pm Saturday Countrylink Group Bookings (02) 9379 1606 between 9am and 5pm Monday to Friday Teletypewriter service for hearing and speech impaired customers 1800 637 500 www.countrylink.nsw.gov.au