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Annual Report 2011-12 Project Team Trevor Rowe, Violeta Zammit Design Mac ‘n’ Me Graphics Print Barney’s Print Management At V/Line we work to reduce our footprint where we can. In the interests of sustainability, this report has been printed using waterless technology on Australian-made recycled paper. To help reduce paper usage, this report may be viewed online at vline.com.au Cover: Southern Cross Station. Contents About us 2 V/Line’s strategic agenda 2 Letter to the Ministers 3 Passenger network map 4 Chairperson’s report 5 CEO’s report 6 Key results 8 Facts and figures 9 Safety and security 10 Our customers 12 Patronage 14 Sustainability and environment 15 Our people 18 Operations 20 Fleet 21 Infrastructure 22 Victorian rail network map 23 Financial summary 24 Corporate governance 25 Financial statements 31 Independent auditor’s report 58 V/Line’s Statement of Corporate Intent 60 Disclosure index 61 CONTENTS V/LINE ANNUAL REPORT 2011-12 1 About us V/Line is Australia’s largest regional public transport About this annual report operator. In 2011-12 it served a record 15.5 million train This is the annual report of V/Line Corporation – formerly and coach passengers. known as V/Line Passenger Corporation (VLC) – and its Each week there are more than 1,400 train services that wholly owned subsidiary V/Line Pty Ltd (V/Line) formerly run between Melbourne and: known as V/Line Passenger Pty Ltd. • Geelong (including South Geelong and Marshall) V/Line Corporation is a not-for-profit corporation under and Warrnambool the State-Owned Enterprises Act 1992. • Bacchus Marsh (including Melton), Ballarat, Ararat As a franchisee, V/Line must fulfil its contractual and Maryborough obligations under the franchise agreement. The franchise • Sunbury, Kyneton and Bendigo; Swan Hill and Echuca agreement was with the Director of Public Transport until • Seymour, Albury/Wodonga and Shepparton 2 April 2012 then transferred to Public Transport Victoria • Traralgon, Sale and Bairnsdale from that date. There are also almost 600 coach services each week V/Line is responsible to the Victorian Minister for Public that connect with the rail network and serve regional Transport and the Victorian Treasurer. Victorian communities where trains do not operate. Some This report provides a summary of V/Line’s key activities coach services also travel through to South Australia, and financial performance for the period 1 July 2011 to New South Wales and the Australian Capital Territory. 30 June 2012. Private sector buses, under contract from Public Transport Victoria, provide the majority of V/Line bus services. Vision In addition to being a passenger service operator, we also To be recognised by our community as the leading provide access to and maintain 3,420 km of broad gauge Victorian public transport provider. rail track used by the passenger and freight rail services. V/Line is a major employer with a workforce of 1,460, Mission many of whom live in regional areas of Victoria. To provide value for our customers and community by delivering safe, reliable, accessible and sustainable passenger and rail freight transport services as part of an integrated transport system. V/Line’s strategic agenda V/LINE’S OBJECTIVES SAFETY AND SECURITY Continuously improve safety and security in all aspects of our operations and business RETAIN AND GROW REPUTATION Advance and represent the interests and prosperity of regional and outer suburban Victoria SHAREHOLDER SATISFACTION AND FINANCIAL Demonstrate strong governance, efficient operations and RESPONSIBILITY financial responsibility GROW THE BUSINESS Grow and advocate for future investment to ensure sustainable patronage and freight volumes year on year ‘ON-TIME’ AND ‘IN-FULL’ SERVICE DELIVERY Improve reliability and service delivery year on year CUSTOMER SATISFACTION Strive for excellence in customer service and engagement EMPLOYEE SATISFACTION AND WELLBEING Be recognised as the employer of choice in the Australian rail industry, with a positively motivated, engaged and skilled workforce COMMUNITY AND ENVIRONMENTAL RESPONSIBILITY Be a trusted participant in regional communities and drive sustainable outcomes 2 V/LINE ANNUAL REPORT 2011-12 ABOUT US/STRATEGIC AGENDA Letter to the Ministers 16 August 2012 The Hon Terry Mulder MP Minister for Public Transport Level 16, 121 Exhibition Street Melbourne VIC 3000 The Hon Kim Wells Treasurer Level 4, 1 Treasury Place East Melbourne VIC 3002 Dear Ministers I have much pleasure in presenting the Annual Report for V/Line Corporation and V/Line Pty Ltd (V/Line) for the period 1 July 2011 to 30 June 2012. Yours faithfully Hector McKenzie Chairperson LETTER TO THE MINISTERS V/LINE ANNUAL REPORT 2011-12 3 Passenger network map Mildura Robinvale Griffith Ouyen Piangil Manangatang Pinnaroo Sea Lake Swan Hill Finley To Sydney To Adelaide Deniliquin Barham Tocumwal Mulwala Corowa To Canberra Hopetoun Albury Kerang Rutherglen Birchip Cobram Cohuna Yarrawonga Wodonga Barmah Pyramid Moama Nathalia Numurkah Echuca Springhurst Nhill Warracknabeal Rochester Kyabram Shepparton Dimboola Donald Wedderburn Stanhope Wangaratta Beechworth To Adelaide Elmore St Arnaud Benalla Murchison Horsham Murtoa Rupanyup East Mt Beauty Dunolly Bendigo Bright Heathcote Mansfield Maryborough Seymour Stawell Castlemaine Mt Buller To Narooma & Avoca Talbot Wallan Batemans Bay Halls Gap (open 2013) Daylesford Kyneton Yea Ararat Clunes Lancefield To Canberra Woodend Whittlesea Glenthompson Creswick Sunbury Wendouree Cann River Ballarat Melton Skipton Hamilton Bacchus Ringwood Maffra Bairnsdale Orbost Casterton Marsh Werribee Derrinallum Warragul Mortlake Lara Melbourne Dandenong (see inset) Lakes Entrance Mt Gambier Heywood Geelong Camperdown Lang Lang Sale Traralgon Koroit Terang Korumburra Colac Anglesea Portland Leongatha TO BENDIGO TO SEYMOUR Warrnambool Cowes Anderson Port Fairy Lorne Yarram TO BALLARAT Wonthaggi Sunbury Cape Inverloch Watergardens Apollo Bay Melton Broadmeadows Port Paterson Rockbank Campbell Essendon MELBOURNE Sunshine North Melbourne METRO Footscray Flinders Street Richmond Newport Southern Werribee Cross Station Caulfield Geelong Line Train Service (Spencer Street) Clayton Ballarat Line Train Service TO GEELONG Dandenong Berwick Pakenham Bendigo Line Train Service TO GIPPSLAND Seymour Line Train Service Gippsland Line Train Service Coach Service 4 V/LINE ANNUAL REPORT 2011-12 PASSENGER NETWORK MAP Chairperson’s report V/line is a very strong brand and is highly regarded by its We are also contributing to major government planning regional and city users. This position is the result of the studies that are looking to the rail network of the future. delivery of very high quality services over many years. These include a study into the return of passenger trains Since 2003 this was achieved under the chairmanship between Geelong, Ballarat and Bendigo as well as an of Mr Frank Tait who retired as Chair at the end of the investigation into a rail link between the Melbourne- 2011-12 financial year. There is probably no better Geelong line and Avalon airport. acknowledgement of Frank’s contribution than the My fellow board members Jack Diamond, Susan Oliver Minister’s letter of thanks to Frank. This read: and Moana Weir, who have served diligently since 2010, “V/Line continued to perform to a high standard along with John Wilson, who, with me, joined the board during your term as Chairperson and delivered strong in April this year and Dr Josh Wilson SC who joined in July government transport outcomes, including social, 2012 will actively support these and other Government economic and environmental benefits to the State.” projects and studies which have the potential to deliver very significant additional services and benefits to our and customers in years to come. “Your personal commitment, advice and professionalism We look forward to working with Chief Executive Officer as Chairperson of the Board has been greatly valued and Rob Barnett and his management team to deliver the appreciated.” service outcomes demanded and expected by passengers I wish to add my own thanks to the Minister’s for the work and shareholders. We also thank Rob, his management done by Frank and his Board. team and all staff for their contribution in making V/Line the successful rail organisation that it is today. The Board is looking forward to working with management to continue to deliver excellent country passenger and freight infrastructure services this year. We also look forward to working with our partners in the wider transport portfolio to deliver a number of important new projects that will change the face of regional Hector McKenzie passenger services. Chairperson The most significant of these is the multi billion dollar Regional Rail Link (RRL). The RRL will enable trains from Geelong, Ballarat and Bendigo to travel to and from Melbourne on dedicated regional tracks, freeing V/Line from the operational disruptions that arise entering and leaving the congested metropolitan system. The new trains announced in this year’s budget, changes to the scheduling and rostering tools available to V/Line and even the introduction of myki into the interurban region will all create opportunities for V/Line to improve its efficiency and service offering. CHAIRPERSON’S REPORT V/LINE ANNUAL REPORT 2011-12 5 CEO’s report V/Line’s VLocity trains have been a symbol of the • Successfully returned trains to Clunes for the first renaissance of regional passenger rail in Victoria since the time in 18 years on 4 December 2011 with
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