Orion cChristchurchc Cityh Holdingsl Airport Christchurch City Holdings Limited is a wholly-owned subsidiary of Christchurch City Council. Lyttelton Port Company Enable Services City Care Development Christchurch annual EcoCentral report 2016 C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

2016 snapshot

$1.2 $113.9 6,000 billion million people work on the the capital and the dividend campus dividend payments CCHL paid to The largest employment site CCHL has made Christchurch City in the South Island. to the Council Council since 1995 for the 2016 year. Allowing major investments in community assets, while reducing the impact on rates.

over % 16 5.6 2 million improvement million New Zealanders in crane rates at Red Bus fleet kms serviced by City Care Lyttelton Port during the year

2016 and beyond The CCHL group has grown significantly in value over the years, and the Council is in the position of owning a valuable portfolio of trading assets. We will work proactively with the Council in implementing its capital release programme over the next few years. eight the number of subsidiary companies 195,000 that make up CCHL the number of Orion, Christchurch Airport, Lyttelton Port Company, homes & businesses Enable Services, City Care, to which Orion Red Bus, Development Christchurch and EcoCentral. distributes power

25,817 the number of business, school and 8,086 home broadband tonnes users which were recovered for resale connected to Enable’s by EcoCentral fibre network

the rebuild The CCHL group continues to play a vital role in the rebuild of Christchurch and Canterbury following the series of earthquakes that struck the region in 2010 and 2011. CCHL remains ready to assist its 100% shareholder Christchurch City Council as it addresses the multitude of challenges in rebuilding Christchurch.

C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

Contents

2 The CCHL Group 3 About CCHL 4 The CCHL Group subsidiaries

9 Chairman’s Report

14 Financial Overview

16 Group position and results 17 Corporate Governance Statement

19 Board of Directors 20 Subsidiary and associated companies: 20 Orion Ltd 22 Christchurch International Airport Ltd 24 Lyttelton Port Company Ltd 1 25 Enable Services Ltd 26 City Care Ltd 30 Red Bus Ltd 32 EcoCentral Ltd 34 Development Christchurch Ltd

36 Monitored entities: 36 Canterbury Development Corporation 38 CCHL Financial Statements 97 Statutory Information 99 Report of the Auditor-General 102 10 year Summary 103 CCHL Directory and Group contacts

Photo courtesy www.rsphotos.co.nz C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

THE CCHL Group

75% 100% Christchurch Lyttelton Port International Airport Ltd Company Ltd

% % 89.3 ▲ ▲ 100 Orion Enable New Zealand Ltd Services Ltd 100% ▲ ▲ Christchurch City Holdings Ltd Ltd Connetics Ltd 100% Associate INFRASTRUCTURE

cChristchurchc Cityh Holdingsl is the commercial and investment arm of

% % 100 ▲ 100 ▲ 2 City Care Ltd Development

Christchurch Ltd

▲ ▲ CONTRACTING 100% 100% Red Bus Ltd EcoCentral Ltd URBAN DEVELOPMENT URBAN ▲ MONITORING Canterbury Development ROLE Corporation C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

ABOUT CCHL

Christchurch City Holdings Ltd (CCHL) is the commercial and investment arm of Christchurch City Council (the Council). The company is responsible for managing the Council’s investment in eight fully or partly-owned trading companies – Ltd, Christchurch International Airport Ltd, Lyttelton Port Company Ltd, Enable Services Ltd, City Care Ltd, Red Bus Ltd, EcoCentral Ltd and Development Christchurch Ltd. CCHL also monitors the Canterbury Development Corporation on behalf of the Council.

CCHL’s key purpose is to invest in and Financial contribution Independent governance of promote the establishment of key Christchurch City Council’s decision in trading companies infrastructure, and this now extends 1993 to retain its key infrastructural One reason for such a strong growth to assisting the Council in the rebuild assets through the establishment and return rate is the independent and redevelopment of Christchurch of CCHL has created a successful and commercial approach taken by following the Canterbury earthquakes, public ownership model. The model the boards and management of the and to working with the Council has enabled CCHL to make over trading companies. to implement its capital release $1.2 billion of capital and dividend CCHL places a great deal of emphasis programme as outlined in its Long payments to the Council since on ensuring the group has first class Term Plan. Currently, this involves the 1995, allowing major investments in governance processes in place. release of up to $600m of capital from community assets, while reducing Through a structured, independent CCHL over the next three years. the impact on rates from such process, CCHL recommends director investments. appointments to subsidiary companies Over the same period, the asset value and monitors those companies on of CCHL through its trading companies behalf of the Council. Further detail 3 has grown from some $400m to regarding the company’s corporate CCHL’s key $3.4bn. Total group equity has risen governance polices is set out on pages from $261m in 1995 to over $1.8bn 17 and 18. purpose is to today (of which $1.6bn is attributable Accountability to the Council to Christchurch City Council as the invest in and 100% shareholder of CCHL). CCHL is accountable to the Council through a number of mechanisms, CCHL’s ordinary dividend to the promote the including: Council for the 2017 year is forecast at establishment of $40.6m, plus the return of any capital • Approval of CCHL’s annual release funds, potentially amounting Statement of Intent; key infrastructure. to $110m. • Council appointment of CCHL directors (four councillors and four external); • Confirmation of director appointments to subsidiary companies • Quarterly reporting to the Council; and • Publication of six monthly and annual reports. C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

THE CCHL Group subsidiaries

Orion staff are on-hand in all Spitfire Square has 13 of 17 sites 89.3% weather conditions. 75% already leased. Orion New Zealand Ltd Christchurch International Airport Ltd

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Orion owns and operates the electricity distribution Christchurch Airport is the Gateway to the South Island, the network that provides power to around 195,000 homes and busiest and most strategic southern air connection to the businesses. world's trade and tourism markets. It welcomed more than six million passengers in the past year. Orion aims to provide a safe, resilient, reliable and cost effective electricity distribution network. As one of the largest The airport is a major driver of the South Island regional electricity distributors in New Zealand, Orion’s network economy, with some 6000 personnel working on the airport covers remote rural areas, regional towns and the city of campus making it the largest site of employment in the Christchurch. South Island.

Its network traverses 8,000 square kilometres between the It is one of the partners in the “South” initiative, which sees Waimakariri and Rakaia rivers and from the Canterbury all 15 regional tourism organisations working collegially to coast to Arthur’s Pass. Electricity retailers pay Orion for promote the South Island. the network delivery service and include this in their retail Christchurch Airport is consistently rated by an independent charges to homes and businesses. international quarterly travellers’ survey as the best airport in Around 180 employees work directly for Orion, and most Australia and New Zealand. days a further 250 contractors work on the network. All of these people are critical to Orion’s business as they plan, engineer, operate and control the network, manage finances and contracts, and give customers the best service they can.

Orion owns Connetics – an electrical contracting service provider to utility network operators, local authorities, developers and commercial/industrial customers. C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

Deploying fibre broadband 100% LPC’s new Pilot Launch. 100% in Christchurch’s CBD. Lyttelton Port Company Ltd Enable Services Ltd

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Lyttelton Port of Christchurch (LPC) is the South Island’s Enable Services Limited and its subsidiary Enable Networks largest Port and Container Terminal, managing 80% of Limited (Enable Group) are building and connecting local the area’s container trade imports and more than half its homes and businesses to a world-class fibre network as part exports. Over 360,000 TEUs (20-foot equivalent units) of of the Government’s ultra-fast broadband (UFB) initiative. containerised cargo travels through the Port each year. Today, this network reaches 117,988 potential customers Lyttelton Port is a vital link for national and international in Christchurch, Rangiora, Kaiapoi, Woodend, Rolleston and shipping with 14 container shipping lines and nine shipping Lincoln. The network will continue to be extended until it services providing direct connections all over the world. More reaches 180,000 potential customers, with a planned build than 900 ships visit Lyttelton each year from 90 international completion date of 31 December 2018. ports and 39 countries. Enable owns this critical fibre infrastructure and provides LPC has a full array of shipping services, including wholesale fibre broadband services to 38 retailer service stevedoring and cargo handling, and offers a diverse range providers – so they can supply broadband services to homes, of trades. On the water, full marine services are provided schools, businesses, hospitals and community service including the provision of tugs, a new Pilot Launch and organisations within our region. experienced Pilots to escort ships in and out of the Port. With over 25,000 customers connected, Enable’s network LPC has two Inland Ports. MidlandPort, opened in June 2016, is transforming how people in greater Christchurch use provides a rail connection for freight containers between technology to do business, learn, provide community Rolleston and Lyttelton and unprecedented connectivity for services, communicate with family and be entertained. South Island trade. LPC’s other Inland Port is CityDepot, six Enable has generated approximately 500 new jobs within the kilometres from Lyttelton. This container storage and repair local community as a direct result of its UFB network rollout. service has the capacity to store up to 9,000 TEUs.

The Port operates 24/7, has the largest coal facility in New Zealand, is the country’s third largest port and is the largest employer in Lyttelton, with over 500 permanent staff. C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

THE CCHL Group subsidiaries CONTD.

City Care won two major greenspace contracts during the year, in 100% Dunedin and Waikato. 100% Red Bus control room. City Care Ltd Red Bus Ltd

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City Care is a leading provider of construction, Red Bus’ vision is to “lead the way in passenger transport” maintenance and management services across the by operating a profitable and modern passenger service and built environment. City Care delivers its services to maintaining a safe fleet and reputation as a good employer. over two million New Zealanders, from 17 offices and Delivering on this vision contributes to quality passenger depots throughout New Zealand. transport services supporting the Canterbury recovery. Since its launch in 1999 as a company operating solely It operates a large passenger transport business serving in Christchurch, City Care has grown into a large, profitable Canterbury and the South Island. national entity. It now holds a major portion of the local government infrastructure maintenance market, with 13 Last year its Canterbury urban and school bus services city and district council clients (including Christchurch City carried 3.74 million passengers and travelled 5.6 million fleet Council) and is recognised as a major player within the kilometres. building, civil construction, water and wastewater, green space, roading, construction and facilities management sectors.

In 2011, City Care joined four other contractors in signing the Stronger Christchurch Infrastructure Rebuild Team (SCIRT) agreement to rebuild Christchurch’s earthquake damaged roads, water networks and bridges. This work is expected to continue until the end of 2016.

City Care is known for the calibre and dedication of its people who are proud to work around the clock in their communities to keep things working 24/7. C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

EcoSort team decontaminating the recycling Artist’s impression of the proposed 100% – please recycle wisely. 100% Christchurch Adventure Park. EcoCentral Ltd Development Christchurch Ltd

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EcoCentral Ltd manages the processing of household and Driving investment opportunities, encouraging urban commercial refuse and the automated sorting of recycling development, aiding regeneration and engaging the throughout the Canterbury region. community in activities that will benefit Christchurch, are all part of Development Christchurch Limited’s (DCL’s) mandate. The company is committed to reducing the amount of waste going to landfill and finding ways to ensure Christchurch Established in 2015 by Christchurch City Council, DCL leads the way in recycling. was created to deliver on the city’s ambition to enable investment, development and regeneration activities that will EcoCentral Ltd manages: drive better inter-generational outcomes across the city. • EcoSort, a large facility that receives all the ‘yellow bin’ DCL’s first year of operation has been an extremely busy recycling from Christchurch and surrounding areas. Here one as it managed the challenges of both establishing a new the materials are automatically sorted, baled and sold as entity and advancing the four priority projects the Council reclaimed material either in New Zealand or overseas. tasked DCL with leading. These included: • EcoDrops, three transfer stations that manage the city’s recycling and refuse. Each station accepts unwanted • Leading the implementation of the New Brighton Master household items, recycling, household hazardous waste, Plan developed by the Council. general refuse, green waste and hardfill. • Engaging with the private sector in respect of • EcoShop, on Blenheim Road, is the retail outlet for the opportunities to partner in the development of new car- household recycled goods received from the EcoDrop parking facilities across the central city. transfer stations. Goods are inspected by workshop staff • Preparing a development management plan for the before they are sold in the shop. redevelopment of the Peterborough Quarter, centred on the old convention centre site. • Investing in the Christchurch Adventure Park as a significant new amenity for locals and visitors alike. C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

THE CCHL Group subsidiaries CONTD.

John Morgan, FoodSouth chief executive Monitored (left) and Cookie Time general manager, Lincoln Booth trial a new variety of cookies - by CCHL green tea - for the Japanese market. Canterbury Development Corporation

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Canterbury Development Corporation (CDC) is a 100 percent Christchurch City Council controlled organisation. Christchurch City Holdings Limited (CCHL) undertakes a monitoring role of CDC on behalf of Council.

CDC’s vision is a better way of life through a strong economy.

To achieve this CDC supports, encourages and influences the economic success of the greater Christchurch region. CDC works with business, government agencies and private sector experts to drive innovation and exports, generate wealth and prosperity and supports high-growth potential businesses to drive efficiencies, invest wisely and develop new markets.

The Christchurch Economic Development Strategy (CEDS) is a work programme under the Council Community Outcomes framework. CEDS outlines strategic priorities for growth and has over 20 other implementation partners across the private and government sectors. CDC is currently consulting with stakeholders to refresh and update the 2013 document. C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

Chairman’s REPORT

The Christchurch City Holdings Group (CCHL) continues to grow in value through the success of its long held strategic assets, and the growth of some of its newer additions. CCHL’s approach of working with the Council to identify infrastructure needs of the region that are not being filled by the private sector or existing Council operations has led to the establishment of entities like Enable Overall the group Services Ltd (ESL), and more recently Development Christchurch is in good heart and Ltd (DCL). in strong financial This approach has resulted in CCHL Financial 100% shareholder, Christchurch City Group shape, with many of Council (CCC), being in the position of The reported consolidated profit owning a valuable portfolio of trading the companies now for the year was $38.8m. This is assets. significantly lower than the $132.3m experiencing Overall the group is in good heart and recorded in the 2015 financial year. in strong financial shape, with many The 2015 result included a $29m improved of the companies now experiencing insurance receipt by Orion, but the improved profitability and growth. most significant discrepancy between profitability and the two years is the booking of an As part of its Long Term Plan the CCC impairment by Lyttelton Port Company has determined that it will need to growth. (LPC) in the 2016 year. raise a substantial amount of capital 9 from CCHL through its capital release The LPC net asset position increased significantly in 2014 when insurance proceeds programme in order to keep its of $358m were received as income. The funds were received to replace assets forecast debt within appropriate limits. destroyed and damaged in the Earthquakes of 2010 and 2011. LPC invested significant capital to increase the resilience of the company’s infrastructure, During the year CCC requested CCHL although that investment did not, in isolation, increase operating earnings. The to put City Care Ltd, a wholly owned resulting discrepancy between earnings and net assets gave rise to the impairment. subsidiary, into a sales process, with a view of using sales proceeds to In 2016 the Board of LPC assessed the “value in use” of the company to be fund the 2016 component of the significantly lower than its net asset position. On this basis a net impairment impact capital release programme. After a on the profit and loss for the group of $78.5m has been realised. rigorous sales process the decision The CCHL Board fully support the assessment taken by the LPC board. Over the to retain City Care was made in July last couple of years there have been a number of indicators that have highlighted 2016 by the shareholders (CCC). It this potential impairment issue, including independent valuations undertaken by is not anticipated that further sales CCHL. The impairment of the LPC’s net assets brings the net equity in its financial processes will be undertaken with statements in line with the valuation of the investment in CCHL’s Statement of any strategic asset, however CCHL Financial Position. is committed to working proactively in executing the Council's capital The following table normalises the reported pre-tax group profits of 2016 and 2015, release strategy over the anticipated and the forecasts in last year’s Statement of Intent (SoI), for the above-noted factors timeframe of the next three years. to arrive at a more comparable portrayal of the underlying profit before tax figure:

A significant achievement for the year Analysis of profit before tax Group Group SoI was the completion of the acquisition 2016 2015 forecast $'000 $'000 $'000 of the Crown Fibre Holdings Ltd (CFH) shares in Enable Networks Profit before tax for yearas reported 55,288 177,995 123,700 Ltd (ENL), by Enable Services Ltd (ESL). This essentially means that Gain arising on business combination (11,838) the Christchurch community now Impairment 107,425 holds a 100% ownership stake in its fibre broadband network. Whilst this Insurance proceeds recognised – (29,000) – was ultimately always the intention, Investment property (gains) (12,489) (18,086) (5,000) the success to date of the network rollout has allowed the group to work 83,098 (47,086) (5,000) closely with CFH to bring forward this decision. Underlying profit before tax 138,386 130,909 118,700 C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

Chairman’s REPORT CONTD.

The gain arising on business Parent company public EV charging stations will be combination reflects the revaluation The parent company’s net profit for rolled out across the region this year. of ESL’s investment in ENL as an the year of $82.3m was well up on Airport associate immediately prior to the the previous year’s result of $68.8m, Christchurch International Airport purchase of the CFH’s shares in ENL. mainly reflecting the receipt of a Ltd is back on its growth plan with The underlying profit before tax for special dividend from Orion New 2016 seeing an all-time record 6.3 the year has improved by some $7.5m Zealand Ltd and increased dividends million passengers. That is an average from the 2015 result, and is $19.6m from CIAL. of 17,000 passengers a day passing higher than the SoI forecast. Parent company reserves increased through the airport. The main reason for the by $282m, primarily as a result CIAL’s Net Profit before Tax of $57.5 improvement over the previous year of revaluations of the company’s million is up 14.6% on previous years. is an improvement in Christchurch investments in its subsidiaries from In addition the CIAL Board has lifted International Airport Ltd’s (CIAL) $2.098m to $2.403m. The two material its dividend payout policy to 90% underlying pre-tax profit reflecting changes to investment value this of NPAT which means this year the continued growth in passenger year are Orion at $673m down from airport delivered $29m of dividends numbers, one off gains on asset sales $753m after the share buy-back and to CCHL – this was $11m more than and continued focus on productivity Christchurch International Airport forecast. Results also included net and cost control. increased to $862m from $635m. investment property revaluation gains Further information regarding the The company paid dividends to of $9.2 million reflecting the significant financial results and position of Christchurch City Council of $131.9m investment in property development the group and parent company is which included a special dividend over the last few years. provided in the “Financial overview” of $90m towards the capital release Other key achievements this year section on pages 14 to 16, and in the programme. by the airport included the arrival of reviews of the individual companies on 10 Electricity network China Southern Airlines, a direct long pages 20 to 37. Orion New Zealand Ltd has recorded haul service to China. As well there another strong year in 2016, a were increased trans Tasman flights, consistent performer for the all reflecting strong tourism growth in group, Orion has delivered $136m the region. in distributions to CCHL this year The airport continues its strong including $80m via a share buy back property development phase with the and a special dividend of $13m. announcement of a new 200 room After reviewing its capital structure hotel being built in 2016. This is in last year, Orion increased its debt response to demand from the airlines’ by $90m, and reduced its equity by partners, and supports the tourism returning $90m to its shareholders. growth the region is experiencing. Not only did this help with the capital In addition, the successful opening of release programme for the city, this Spitfire Square, the new retail precinct moved the company towards a more and the expansion of the other efficient capital structure, well within precincts has moved the airport to The main prudent levels. being one of the largest single centre’s reason for the In addition, Orion continues to build of employment in the South Island capacity and resilience into its network with over 6000 people on campus. with the completion of its $60m sub- improvement over Port transmission ‘northern loop’ project, Lyttelton Port Company Ltd (LPC) the previous year which means the city’s 66kV network is has had a significant year. Whilst now more interconnected, robust and the decrease in dairy prices and is an improvement ready for future customer growth. exports has impacted the container in Christchurch Orion is continually looking for ways volumes, there were a number of key to meet customers changing needs. milestones achieved including: Electric vehicles are one of those so International • Approval of the Lyttelton Port Orion has not only increased the Recovery Plan (LPRP), providing number of hybrids in its own fleet, Airport Ltd’s (CIAL) a framework for developing the they have installed 12 EV charging Port as the South Island’s major stations at its head office – which are underlying pre-tax international trade gateway available for the public to use during profit … the day. It is anticipated that further • Opening of MidlandPort, the C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

company’s new Inland Port at 2017 will be another significant buses to replace some of the large Rolleston, providing a rail connection year for Enable in terms of growth, urban buses on some of the existing for container freight with Lyttelton completing its second to last routes, matching customer demand Port. deployment programme. Enable is and reducing operating costs. • Opening of the new Cashin Quay 2 targeting around 50,000 connections Red Bus continues to look for ways wharf which doubles the container in the 2017 financial year. to improve its customer experience berth capability of the port. Contracting reflective in the introduction of telematics in 2015 being extended An increased focus on health and City Care has had a tough year throughout the fleet, leading to safety this year has seen the Total and the company has continued to a noticeable improvement in the Recordable Injury Frequency Rate perform well whilst being involved in smoothness of ride, as well as (TRIFR) reduce by 45%, a reflection a very demanding sales process. The significant fuel savings. on the importance that LPC place on company has had strong cashflows safety. which have allowed it to purchase Recycling Land reclamation in Te Awaparahi Bay Apex Environmental Services, adding EcoCentral Ltd recorded another good has increased to 9.85 hectares allowing to its expertise in design and build result for the year, and has continued for extra container storage. wastewater treatment capability as to repay debt. well as paying dividends of $4.1m and A specific concentration on efficiencies Trading through the EcoDrop transfer reducing debt. has seen a significant improvement in stations has reduced as expected the crane rate by 16%. A key highlight for the year was the as the demolition activity in the city opening of the Margaret Mahy Family Community engagement has been high diminishes. A strong ongoing focus Playground undertaken as a joint on the agenda this year for LPC. Two on health and safety has seen the venture with John Filmore Contracting significant initiatives this year were the addition of pit face fall restraints Ltd. LPRP, which received overwhelmingly added to all the EcoDrop sites as a positive public feedback and the City Care Ltd’s involvement in Stronger means to continue to protect our 11 introduction of the free monthly port Christchurch Infrastructure Rebuild customers. tours which have been consistently Team (SCIRT) is winding down this EcoSort continues its innovative booked out and highly regarded by year, and the company is focused on measures to make recycling affordable all who attend. LPC recognise and replacing this work with new contracts. by purchasing new equipment to appreciate the importance of the Key contracts won this year include enhance efficiencies. ongoing relationship it has with the the Dunedin City Council’s parks A partnership with Nurse Maude is local Lyttelton community. maintenance south, the open spaces helping to increase support through maintenance contract with Waikato the EcoShop. Broadband District Council and an extension to its Enable Services Ltd had another facilities management contract with Urban development successful year, with fibre broadband Wellington City Council. In 2016 the Council approached CCHL network deployment completed to City Care also continues its significant and asked it to invest in a company over 31,000 homes and business involvement in emergency response that could work with the Council premises, bringing the total to 117,988. operations – in particular some major to help progress and contribute to In addition the key milestones of flooding events in Timaru and various the region through development, ensuring services were available to locations in the lower and central investment and regeneration activities. 100% of schools and 90% of businesses North Island. Development Christchurch was were achieved in December 2015. established to achieve this, working Public transport Group income after the reorganisation closely with Regenerate Christchurch, exceeded expectations, and the net Red Bus Ltd continues its Otakaro Limited, other public sector loss decreased against budget. These improvement in its financial agencies, community groups and positive indicators have the company performance, returning another profit the private sector. It will contribute on track to be NPAT positive within the for the year. Patronage levels on Red to Christchurch by providing strong next four years. Bus's urban passenger services have commercial focus and commitment reduced slightly over the previous year Rates of fibre uptake continue to to engage proactively in a variety of as the company continues to explore be very strong, which has had its regeneration projects. new ways of growing the business. challenges as Enable translates this Whilst still in the early stages DCL Red Travel which was introduced in higher than expected uptake into has already achieved a significant 2015 has shown strong growth this connections. Investment in resources milestone by providing the year, with additional coaches being and systems has gone some way to commercial advice and engagement added to the fleet in the coming year. helping with this, but it remains a into the region’s investment into the key focus of Enable to improve the Another success this year is the Christchurch Adventure Park. Without customer experience. purchase of eight mid-sized urban this dedicated focus it is unlikely this C H R I S T C H U R C H C I T Y H O L D I N G S L I M I T E D I 2 0 1 6 A N N U A L R E P O R T

Chairman’s REPORT CONTD.

facility would have started this year, Governance the number and calibre of the let alone be on target to opening in The CCHL Board recognises that experienced and talented people who December. good governance is critical to the continue