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ANNUAL REPORT 2005-06 Contents Letter to The VicTrack ANNUAL REPORT 2005-06 Contents Letter to the Who is VicTrack? ................................................1 Minister Report from the Chairperson ..............................3 Report from the Chief Executive .........................5 4 October 2006 VicTrack Commercial Services ............................6 VicTrack Property Services .................................9 The Hon Peter Batchelor MP Minister for Transport VicTrack and the Rail Business ..........................11 Level 26, Nauru House 80 Collins Street VicTrack and Asset Management ......................13 Melbourne Victoria 3000 VicTrack and Victoria’s Rail Heritage ...............15 Dear Minister I have much pleasure in submitting the Annual Report VicTrack and the Environment ..........................17 for VicTrack for the period of 1 July 2005 to 30 June 2006 for your presentation to Parliament. VicTrack and its People .....................................18 Yours sincerely Members of the Board .......................................20 Executive Team .................................................21 Corporate Governance ......................................22 Elana Rubin Chairperson VicTrack’s Organisational Structure ..................24 VicTrack’s Financial Performance ......................25 Finance Report ..................................................26 Statutory Information .......................................60 Disclosure Index and Glossary ..........................61 Who is VicTrack? VicTrack is a commercially driven and socially responsible 2005-06 Highlights organisation that, in its custodian role, protects and adds • Installed a network for the provision of closed circuit value to Government assets, primarily state rail land and television (CCTV) at principal metropolitan railway stations, infrastructure. It successfully manages around $50 million worth to provide enhanced security for the 2006 Commonwealth of projects each year, on behalf of the Victorian community. Games; VicTrack (Victorian Rail Track) was created on 1 April 1997 • Completed construction of Sherwood Park Station under section 8 of the Rail Corporations Act 1996. It is a (Warrnambool), allowing better student access to Government Business Enterprise, reporting to the Minister for Deakin University; Transport. • Undertook a new development process at Stubbs Street, Kensington that will result in a positive commercial return VicTrack is the custodian of strategic rail assets including: while also providing an ongoing revenue stream and flexibility • Land and interests in the land; for future options; • Track; • Successfully completed heritage restoration works at Ballarat • Signals; and St Arnaud stations; • Buildings and structures; • Oversaw the completion of draft vegetation management • Overhead wiring; guidelines for the rail industry; and • Power substations; • Commenced preparations for the relocation of the head office • Rolling stock; to 1010 La Trobe Street, a new high-tech precinct • Communications networks; and in Docklands. • Communications base stations. The majority of these assets are leased to the Director of Public Transport (DPT). DPT then sub-leases the assets to various rail transport operators and track access providers. Under the leases to DPT, VicTrack has the right to undertake commercial activities in the areas of telecommunications, property leasing and licensing, outdoor advertising and commercial property development. In undertaking its commercial activities, VicTrack must not, however, adversely interfere with transport operations. In addition to these commercial activities, VicTrack performs a range of important social and environmental activities including proactive environmental management, maintenance of rail heritage assets and provision of leases to not-for-profit community organisations at nominal rates. ...commercially driven and socially responsible VicTrack Annual Report 2005-06 VicTrack provides a unique rail perspective to various committees at a time where predictions indicate significant growth in rail transport into the Port of Melbourne. ...a significant year in terms of planning for the future 2 VicTrack Annual Report 2005-06 Report from the Chairperson In its role as custodian of strategic rail assets, VicTrack operates Proactive environmental management plans, rail heritage across a diverse range of industry sectors. In this financial restoration and preservation, infrastructure maintenance, year, VicTrack consolidated its position within these sectors property information systems and a commitment to leasing and delivered a strong financial performance, allowing it to VicTrack land and buildings at nominal rates to not-for-profit contribute to the delivery of State Government policy objectives community organisations are just some of the activities that and provide social and environmental benefits for the enabled VicTrack to deliver a social benefit to Victoria. One of Victorian community. the key factors in VicTrack’s ongoing success will be to continue to strike a balance between these non-commercial activities and In collaboration with Government departments, particularly commercial initiatives. the Department of Infrastructure (DOI), VicTrack continued to assist Government in the delivery of key policy objectives including Growing Victoria Together, Linking Melbourne: Looking forward to 200 and beyond Metropolitan Transport Plan and Melbourne 2030. During the year, the Government outlined its blueprint for VicTrack contributes significantly to the Victorian economy Victoria’s transport system into the future in its transport and and the community with operations in four key business areas: liveability statement Meeting our Transport Challenges. • Telecommunications sector, providing services primarily to VicTrack will work with DOI to assist in the delivery of the rail transport operators and related contractors; transport objectives outlined in this document. • Rail and transport industries, both passenger and freight; • Property management and development, providing access to In the year ahead, our head office will relocate to and developing VicTrack’s property portfolio; and 1010 La Trobe Street in the new high-tech Docklands precinct. • Rail transport infrastructure development, maintenance This relocation, which will integrate our head office people for and preservation. the first time, will provide an excellent opportunity for further enhancement of a strong and cohesive culture within VicTrack. A positive commercial outcome This year has been one of consolidation and success for VicTrack but also a significant year in terms of planning for the It is pleasing to report that continued growth in demand for future. A clear vision for our organisational objectives to 2010 VicTrack services and expertise across all four business areas and beyond, involvement of our people in planning the move delivered a positive commercial outcome in the 2005-06 to 1010 La Trobe Street and ongoing positive cultural change financial year. provides us with great optimism when looking to the future of VicTrack. We have again achieved our bottom line revenue and operating expenditure budgets. Revenue from VicTrack’s business activities increased by eight per cent to more than $59 million. Thank you Our capital expenditure program of $50 million represents a significant investment in the state’s rail infrastructure assets for I would like to thank my fellow Directors for their the benefit of the Victorian community. contributions during the year, and on behalf of the Board, to thank John Sutton and the VicTrack people for their enthusiasm and ongoing hard work. Social and environmental sustainability While performing these commercial activities, VicTrack also conducted a range of activities that generated social Elana Rubin and environmental benefits for the broader community. These activities were valued at around $27 million in this financial year. VicTrack Annual Report 2005-06 VicTrack employee Chris Hogan, conducting a risk assessment at a level crossing with passive protection. …strategically positioned to maximise commercial outcomes and fulfil our obligations to the community VicTrack Annual Report 2005-06 Report from the Chief Executive One of the most pleasing results of the past year has been the continued to contribute its knowledge and unique perspective significant and continued demand for VicTrack services and rail of the industry, land, operations and terminal management by industry expertise. advising private rail operators, franchisees and Federal and State Government planning, policy and project committees. A continuing Government focus on areas such as security and safety in the rail network, increasing use of public transport Delivering safer level crossings is a key Government and resultant infrastructure demands, a greater focus on the commitment. The VicTrack Asset Management Group rail network for moving freight and a burgeoning community is supporting the delivery of this objective through the interest in broadband access represent some of the changes in management of the Victorian Railway Crossing Safety Steering our operating environment influencing the growth of VicTrack. Committee’s level and pedestrian crossing upgrade programs. Asset Management also continued essential research and Over the past year, considerable attention has been given to development work into enhancing crossing safety. understanding our changing environment and its stakeholders and forward planning to ensure
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