Annual and Financial Report 2014-15 General information This is the consolidated Annual and Financial Report 2014-15 Translation and interpreting assistance: (“the report”) of Queensland Rail (ABN 68 598 268 528) and its Queensland Rail is committed to providing accessible services to subsidiaries, Queensland Rail Limited (ABN 71 132 181 090) (QRL) and Queenslanders from all culturally and linguistically diverse backgrounds. On Track Insurance Pty Ltd (ABN 18 095 032 670) (OTI). If you have difficulty in understanding the report, please contact Queensland Rail is a statutory authority established under the Queensland Rail on 13 16 17 and we will arrange an interpreter to Queensland Rail Transit Authority Act 2013 (Qld) (QRTA Act) and share the report with you. is a statutory body for the purposes of the Financial Accountability Act 2009 (Qld) and the Statutory Bodies Financial Arrangements Act 1982 (Qld). Queensland Rail’s functions are detailed in Section 9 of the QRTA Act. Queensland Rail discharges its statutory functions through its wholly- owned subsidiary QRL. QRL does not employ any personnel, but owns all non-employee related assets and contracts. It performs the role of rail transport operator under the Transport (Rail Safety) Act 2010 (Qld). OTI is a wholly-owned subsidiary of QRL. It provides insurance cover for claims on Queensland Rail, QRL and the Aurizon group of companies in respect of events up until 30 June 2010. Unless the context otherwise requires, Queensland Rail together with its subsidiaries QRL and OTI, are collectively referred to as “Queensland Rail” for the purposes of the report. A general description of the nature of Queensland Rail’s operations and principal activities is included in the report. This report is available, along with other useful resources, via the Queensland Rail website: queenslandrail.com.au For further information on Queensland Rail: Phone: 13 16 17 Copyright © Queensland Rail Limited 2015. Mail: GPO Box 1429, Brisbane, Queensland, 4001 Disclaimer Registered Office While all care has been taken in preparing the report, Queensland Rail Queensland Rail accepts no responsibility for decisions or actions taken Level 14, Rail Centre 1 as a result of any data, information, statement or advice, expressed, 305 Edward Street implied or contained in this report. Queensland Rail is committed Brisbane, Queensland, 4000 to minimising the impact on the environment by printing a limited Queensland Rail ABN 68 598 268 528 numbers of copies of this report. An electronic version of this report is available at queenslandrail.com.au Page 2 | Queensland Rail Annual and Financial Report 2014-15 Bety departing Emerald, April 2015 Queensland Rail Annual and Financial Report 2014-15 | Page 3 305 Edward Street T 07 3072 0565 GPO Box 1429 F 07 3072 0090 Brisbane QLD 4001 www.queenslandrail.com.au The Honourable Jackie Trad MP Deputy Premier Minister for Transport Minister for Infrastructure, Local Government and Planning Minister for Trade and Member for South Brisbane Level 12, Executive Building 100 George Street BRISBANE QLD 4000 The Honourable Curtis Pitt MP Treasurer Minister for Employment and Industrial Relations Minister for Aboriginal and Torres Strait Islander Partnerships and Member for Mulgrave Level 9, Executive Building 100 George Street BRISBANE QLD 4000 Dear Deputy Premier and Treasurer Queensland Rail Annual and Financial Report 2014-15 I am pleased to present the Queensland Rail Annual and Financial Report 2014-15. I certify that this annual report complies with: • the requirements prescribed by the Financial Accountability Act 2009 (Qld), the Financial and Performance Management Standard 2009 (Qld), the Queensland Rail Transit Authority Act 2013 (Qld) and the Corporations Act 2001 (Cth) • the guidelines set out in the annual report requirements for Queensland Government agencies. The report outlines Queensland Rail’s strong operational performance as well as the financial efficiencies that have been achieved during the 2014-15 financial year. The Queensland Rail Board and Executive Leadership Team are confident that the organisation can continue to sustain its operational performance in the next financial year while pursuing further opportunities for cost optimisation. As outlined in the report, a dividend of approximately $179 million will be declared for this financial year. The Board unanimously endorses the Queensland Rail Annual and Financial Report 2014-15. Yours sincerely Michael Klug AM Chairman Page 4 | Queensland Rail Annual and Financial Report 2014-15 Table of contents Queensland Rail Annual and Financial Report 2014-15 About us 6 Chairman’s and CEO’s outlook 8 Year at a glance 10 Operational performance 11 Financial performance 12 Our history, our future 14 Our safety and security 18 Our people 22 Our environment 24 Our community 26 Citytrain 30 Regional Network and Freight 34 Travel and Tourism 38 Governance structure 42 Organisational structure 43 Board 44 Executive Leadership Team 46 Corporate governance 48 Summary of the 2014-15 Operational Plan 56 Compliance checklist 57 Glossary and acronyms 60 Queensland Rail Financial Report 2014-15 62 Queensland Rail Annual and Financial Report 2014-15 | Page 5 About us Queensland Rail has a proud 150 year history of being a safe and reliable railway operator and contributing to Queensland’s economic, social and regional development. With approximately 5800 staff, more than $6 billion in fixed and other Queensland Rail performs its railway operations via a wholly owned assets, and more than 6500 kilometres of track, Queensland Rail is subsidiary Queensland Rail Limited. Queensland Rail has a Board which an integrated customer and rail infrastructure business servicing the is ultimately responsible for setting its strategic direction and for the passenger, tourism, resources and freight customer markets throughout exercise of its powers and functions. Queensland. The Board has in turn appointed a Chief Executive Officer (CEO) and The organisation aims to be the safest, best performing and customer Executive Leadership Team (ELT) who are responsible for Queensland focused railway in Australia. Rail’s day-to-day operations. Members of the Queensland Rail Board are appointed by responsible Ministers under the QRTA Act. Throughout 2015, Queensland is celebrating 150 years of rail in the state. Queensland Rail’s expansive network of long distance, tourist The Queensland Rail Board is accountable to two responsible Ministers: and city tracks has played a major part in shaping the history of • The Honourable Jackie Trad MP, Deputy Premier, Minister for Queensland and connecting communities. Transport, Minister for Infrastructure, Local Government and Planning and Minister for Trade Queensland Rail’s vision • The Honourable Curtis Pitt MP, Treasurer, Minister for Employment Queensland Rail’s vision is ‘Connecting Communities and Communities and Industrial Relations and Minister for Aboriginal and Torres Strait Connecting’, which acknowledges the essential role it plays in providing Islander Partnerships. jobs, delivering passenger rail services, transporting commodities, and supporting industry across the state. Each year, the Board submits an operational and strategic plan for approval by the responsible Ministers. The Queensland Rail Operational The vision demonstrates Queensland Rail’s responsibility in delivering Plan 2014-15 is a formal performance agreement between the the infrastructure and services to ‘connect communities’. These Board and responsible Ministers with regard to service delivery and products allow Queensland Rail’s customers to connect to the things performance. that matter – family, friends, jobs, recreation and travel opportunities. The vision also illustrates the organisation’s role in the tourism industry, Queensland Rail’s products providing connection to regional Queensland and its key tourist With more than 6500 kilometres of track and 216 stations across the destinations. state, Queensland Rail’s business consists of three primary products: The flow on effect of providing a safe, reliable and efficient transport Citytrain, Travel and Tourism, and Regional Network (including Freight). service results in ‘communities connecting’, facilitating social outcomes and economic prosperity for the state. Citytrain Queensland Rail’s Citytrain network is an integrated passenger and Queensland Rail’s purpose rail access service covering more than 800 kilometres in south-east Queensland Rail is committed to providing a safe, reliable, on-time, Queensland. The network extends from Brisbane’s Central Station: value for money and efficient rail service that benefits the community • south to Beenleigh and Varsity Lakes on the Gold Coast and supports industry. • north to Ferny Grove, Shorncliffe, Doomben, Caboolture and Gympie To achieve this, Queensland Rail aligns its business activity to three • east to Cleveland strategic objectives: • west to Richlands, Ipswich, Springfield Central and Rosewood. • People – improving safety outcomes and increasing productivity Across the network, Queensland Rail has 146 Citytrain stations and • Progress – optimising operational expenditure and targeting carries approximately 140,000 passengers per day. Each weekday, it capital investment operates more than 900 services on the Citytrain network. • Performance – sustaining operational performance. Regional Network and Freight Queensland Rail’s operating environment Queensland Rail’s regional network supports industries on the Mount Queensland