Annual and Financial Report 2012-13 Welcome to the Queensland Rail Annual and Financial Report for the financial year (FY) 2012/13. This report is broken up into four sections beginning with general company information, followed by a review based on Queensland Rail’s strategic pillars of Safety, Customer, People, Commercial and Community. The organisation’s Governance and Statement of Corporate Intent (SCI) is detailed in the third section moving through to the Financial Report FY2012/13. This report is also available, along with other useful resources, via the Queensland Rail website: queenslandrail.com.au. For further information on Queensland Rail: Phone: 13 16 17 Mail: GPO Box 1429, Brisbane, Queensland, 4001 Registered Office Queensland Rail, Level 14 Rail Centre 1, 305 Edward Street Brisbane, Queensland, 4000 Queensland Rail ABN 68 598 268 528 Queensland Rail Limited ABN 71 132 181 090 Queensland Rail FY2012/13 Annual and Financial Report Copyright © Queensland Rail Limited 2013. Disclaimer While all care has been taken in preparing this publication, Queensland Rail accepts no responsibility for decisions or actions taken as a result of any data, information, statement or advice, expressed, implied or contained in this publication. Queensland Rail is committed to minimising our impact on the environment by printing a limited numbers of copies of this report. Electronic versions of this document are available from our website at queenslandrail.com.au. To request a copy of our report, please contact our Manager of External Communications. Queensland Rail FY2012/13 Annual and Financial Report 3 ABN 68 598 268 528 queenslandrail.com.au Level 14, Rail Centre 1 305 Edward Street Brisbane Qld 4000 The Honourable Scott Emerson MP Minister for Transport and Main Roads Member for Indooroopilly Level 15, Capital Hill Building 85 George Street Brisbane Qld 4000 The Honourable Tim Nicholls MP Treasurer and Minister for Trade Member for Clayfield Level 9, Executive Building 100 George Street Brisbane Qld 4000 Dear Minister/Treasurer FY2012/13 Annual and Financial Report for Queensland Rail I am pleased to present the FY2012/13 Annual and Financial Report for Queensland Rail. I certify that this Annual Report complies with: • the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009 • the detailed requirements set out in the Annual report requirements for Queensland Government agencies • timing consistent with the extension granted by the responsible Ministers to allow the review of accounting treatment to be concluded. A checklist outlining the annual reporting requirements can be found at pages 221-223 in the FY2012/13 Annual and Financial Report for Queensland Rail. Yours sincerely Michael Klug Chairman Queensland Rail FY2012/13 Annual and Financial Report 4 Contents Queensland Rail Annual Report FY2012/13 About Us 6 Financial Summary 8 Summary of Non-Financial Measures 10 Chairman’s Outlook 12 Chief Executive Officer’s (CEO) Report 14 Delivering Value 17 Safety 21 Customer 26 People 32 Commercial 35 Community 40 Governance Structure 46 Board 47 Leadership Team 51 Corporate Governance 54 Summary of the FY2012/13 Statement of Corporate Intent 69 Corporate Entertainment and Hospitality 71 Financial Report for Queensland Rail 72 Financial Report for Queensland Rail Limited 141 Compliance Checklist 221 Glossary 224 Queensland Rail FY2012/13 Annual and Financial Report About Us Queensland Rail has a proud history of contributing to Queensland’s economic, social and regional development. Throughout our 148 year history, our organisation has adapted to meet the changing needs of the growing State of Queensland. On 3 May 2013, the organisation The four core functions in City Network evolved again when the Queensland Queensland Rail - Network, Rail The City network is an integrated Government passed a bill Operations, Access and Business passenger and rail access service transferring it from one of Strategy and Customer Service - are that extends from the centre of Queensland’s largest Government supported by the enabling functions Brisbane, south to Beenleigh and Owned Corporations to a Statutory focused on specialist services, Varsity Lakes on the Gold Coast, Authority. This change of status has governance and enterprise north to Ferny Grove, Shorncliffe, sharpened Queensland Rail’s focus frameworks and systems. We offer Doomben, Caboolture and Gympie, to solely delivering passenger services and products that support east to Cleveland and west to services, train operations and Queensland’s four pillar economy Richlands, Ipswich and Rosewood, network management. As built on agriculture, tourism, and soon to Springfield. Queensland Rail, we remain resources and construction. committed to building a better Passenger services are provided What Queensland Rail does and how passenger business, improving through the City network and are we do it is underpinned by five key frontline services and contributing integral to the daily life of our areas - Safety, Customer, People, to Queensland’s growth and customers, whether students, Commercial and Community. development, as we have done for workers, tourists or residents, the last 148 years. Through day-to-day business and moving between suburbs and cities. long-term strategic planning Aside from the rapid expansion in As an integrated rail operator, activities, Queensland Rail is South East Queensland’s Queensland Rail operates the rail focused on improving its three main population, commuter and long network along with a fleet of trains services: distance passenger trains compete that provide vital public passenger with freight operators for access to transport in South East Queensland • City network paths on the network. Queensland Our long distance trains travel • Regional Access Rail is working with the Queensland between Brisbane and Cairns, Government to tackle the capacity Long Distance Commuter and Rockhampton, Longreach and • challenges through a long term rail Tourist. Charleville and Townsville to Mount network strategy for growth. Isa. We are continuing to implement Queensland Rail’s network consists key initiatives to improve reliability of 6754 kilometres of track, and frequency on the City network, including the Mount Isa, North such as Active Platform Coast, Western, West Moreton, Management, improved terminating South Western and Central Western train procedures and availability of lines. This critical infrastructure network response teams during gives our freight customers from peak periods. the agricultural, mining, manufacturing, retail and tourism industries of Queensland access to supplies and key markets. Queensland Rail FY2012/13 Annual and Financial Report 6 A key challenge we are faced with We are also developing network We also own and operate specialist is improving patronage growth. We plans to meet customer growth and travel centres in key regional hubs are focused on initiatives to build seamless infrastructure supply offering complete holiday packages enhance patronage growth such as chain outcomes along the Mount Isa to complement our customers’ rail the provision of additional services Corridor with the Port of journey. One key strategy for during peak periods and improving Townsville. Queensland Rail Travel is to open the on-time running of our trains. new market segments. The new By fostering a disciplined safety We have also made enhancements Cairns Tilt Train will help deliver on and compliance culture, we will to our station facilities, improved this strategy by providing a new keep our people, customers and the cleanliness and maintenance of level of train travel in Queensland. property safe as we continue to our trains and we are continuing to meet the needs of our customers as The business is also working to improve the quality of service well as freight, travel and tourist deliver online reservation system information for our customers. rail operators. improvements across the product range and a revised timetable, in Regional Access order to best meet our customers’ Agreements Long Distance Commuter needs. and Tourist Services Regional access agreements include Queensland Rail Travel provides long distance services throughout the design, delivery and The long distance commuter and regional Queensland. In FY2012/13, management of network paths and tourist service integrates travel and more than 750,000 passengers rail assets across Queensland. regional accessibility for travelled with Queensland Rail commuters and tourists, with a These agreements contributed $218 along the Queensland coast, west comfortable rail experience across million in revenue to Queensland to Charleville, Longreach and the state. This includes services Rail in FY2012/13. Approximately Mount Isa, as well as along the along the north coast, services 28 million tonnes of freight is Kuranda Scenic Railway. connecting the western transported on our network each communities, along with the year. These services continue to provide Kuranda Scenic Railway and a safe and reliable transport option With a focus on improving supply Gulflander services. for both travelling Queenslanders chain solutions, developing and tourists visiting regions Customers of the Queensland Rail partnerships and creating new throughout the state. We are also Travel network are provided with a business opportunities, we are working closely with regional areas unique rail travel experience in working with supply chain partners throughout Queensland