ANNUAL REPORT Accessibility 2017 – 2018 If you would like to receive this publication in an accessible format, such as large print or audio, phone 03 9619 5958 or email [email protected] Unless indicated otherwise, this work is made available under the terms of the Creative Commons Attribution 3.0 Australia licence. To view a copy of this licence, visit creativecommons.org/licenses/by/3.0/au It is a condition of this Creative Commons Attribution 3.0 Licence that you must give credit to the original author who is the State of Victoria. ANNUAL REPORT 2017 – 2018 – 2017 REPORT ANNUAL V/LINE Authorised by Transport for Victoria, 1 Spring Street, Melbourne. MSR01744 Annual Report 2017-18_4pp Cover.indd 1 3/12/2018 3:24 PM V/Line Corporation ABN 91 273 289 190 GPO Box 5343 Melbourne VIC 3001 Head Office / Administration Level 9, 750 Collins Street Docklands VIC 3008 Telephone (03) 9619 5900 Facsimile (03) 9619 5000 vline.com.au Customer information, reservations, sales and feedback Freecall 1800 800 007 Project team Rebecca Northeast Scheree Mularczyk Les Lovell Denis Grigolato Printed by Finsbury Green, Port Melbourne. MSR01744 Annual Report 2017-18_4pp Cover.indd 2 3/12/2018 3:24 PM Table of Contents Responsible Body’s declaration 2 Section One: Year in review 3 Section Two: Governance and organisational structure 21 Section Three: Workforce data 31 Section Four: Other disclosures 39 Financial Statements 57 Disclosure Index 134 MSR01744 Annual Report 2017-18_2.indd 1 3/12/2018 3:40 PM 2 V/Line | Annual Report | 2017 – 2018 Responsible Body’s declaration 4 September 2018 The Hon Jacinta Allan MP Minister for Public Transport Level 20, 1 Spring Street Melbourne VIC 3000 The Hon Tim Pallas MP Treasurer Level 4, 1 Treasury Place East Melbourne VIC 3002 Dear Ministers In accordance with the Financial Management Act 1994, I am pleased to present the Annual Report of V/Line Corporation (and its subsidiary V/Line Pty Ltd) for the year ending 30 June 2018. Yours faithfully Jeroen Weimar Chair MSR01744 Annual Report 2017-18_2.indd 2 3/12/2018 3:40 PM 3 YEAR IN REVIEW Section One MSR01744 Annual Report 2017-18_2.indd 3 3/12/2018 3:40 PM 4 V/Line | Annual Report | 2017 – 2018 Purpose, Vision, Mission, Values Purpose To provide a connected and bright future for Victorians Vision A modern, high performing railway and coach service for all Mission Connecting Victoria by empowering our people to be their best Values Accountable We hold ourselves and others to account for the work that we do Be bold We challenge, share ideas, and empower our people to speak up Integrity We are honest, ethical, and transparent Respectful We value others and accept their differences Be our best We always strive for excellence and deliver this to our customers, colleagues and community MSR01744 Annual Report 2017-18_2.indd 4 3/12/2018 3:40 PM Section One – Year in Review 5 Chair’s Report The 2017-18 financial year has been one of We are committed to providing V/Line with improved leadership and performance stability confidence for the future and have taken steps while V/Line continued to experience enormous to ensure stability in its ownership structure. patronage growth. On 17 February 2018 all the employees, assets, liabilities, contracts and business operations Under the stewardship of the previous Chair, were transferred from V/Line Pty Ltd to V/Line Jennifer Dawson, the Board has overseen Corporation. This ensures the consolidation a strengthening in corporate governance of V/Line’s legal and corporate structure and processes, has fortified the financial rigour secures the ongoing public ownership of of the business and demanded executive V/Line’s business. accountability which has contributed considerably to improving the overall The Regional Rail Revival investment by the business confidence within V/Line. Victorian and Commonwealth Governments is welcomed by the Board, but will see an even On behalf of the Board of V/Line, I extend greater volume of works and disruption to our gratitude to Jenny for her leadership. passenger journeys over the coming years It was also the first full financial year for our as these important upgrades are delivered. Chief Executive Officer, James Pinder, who has With this increasing volume of improvement established clear business priorities including: works being undertaken across the network, • improving performance the Board has continued to focus on ensuring • focusing on modernisation and safety, service delivery and customer key projects communication are at the forefront of • empowering the people of V/Line. business planning. The leadership team James has assembled On behalf of the Board I would like to thank has provided stability and focus for the business all the people across V/Line; our station staff, during 2017-18 which has translated into conductors and drivers, controllers and increased employee engagement. Significant schedulers, service planners and administration steps have also been taken to modernise legacy teams, coach service planners and the operational systems and hold third-party engineers who work up and down our network. maintenance providers to account for improved V/Line is able to provide regional rail and coach rolling stock reliability. services to record numbers of passengers thanks to more than 1,900 dedicated and professional V/Line staff who work around the clock to run and improve our railway. Jeroen Weimar Chair MSR01744 Annual Report 2017-18_2.indd 5 3/12/2018 3:40 PM 6 V/Line | Annual Report | 2017 – 2018 CEO’s Report The last financial year has seen a significant Other highlights of the 2017-18 financial increase in momentum for V/Line as Victoria’s year include the re-opening of the Ararat to regional rail network continues our evolution Maryborough freight line after 15 years as part towards becoming a high frequency commuter of the Murray Basin Rail Project and the rollout railway. of technology to improve mobile phone and data reception across the VLocity fleet. Significant government investment is helping us deliver the upgrades we need to our V/Line delivered more than 20 million passenger infrastructure and rolling stock and my role as journeys for the first time in 2017-18 and we put leader of this organisation is to continue the our 200th VLocity carriage into service as well drive towards modernising our culture and as delivering 151 new train services per week. workforce in order to adapt to this ever- I would like to extend a sincere thank you to the changing environment. V/Line Board and Executive team and to all of There are great challenges for V/Line in the our hardworking staff across Victoria. It is the coming years, but with these challenges come people of V/Line who make this organisation opportunities. such an important element of the social and economic fabric of regional Victoria. We need to refine our approach to recruitment and training to ensure we give our people the In particular, I extend a personal thank you to right skills to fill future roles as we take delivery Jenny Dawson, who finished her three-year term of more trains and run more services. as Chair of the V/Line Board on 30 June 2018. It has been an absolute pleasure to work with We need to modernise our legacy systems and learn from Jenny. Her leadership during for service planning, timetabling, rostering a challenging time has been critical to this and performance. organisation and she leaves a significant legacy. And all of this needs to happen in conjunction I am pleased to welcome Jeroen Weimar as the with improved punctuality and reliability during new Chair of the V/Line Board. Jeroen’s expertise a period of unprecedented patronage growth. will provide invaluable support to the V/Line The commencement of the $1.75 billion management team and he will no doubt help Regional Rail Revival project – which will deliver us foster stronger ongoing relationships with improvements across all of V/Line’s rail corridors Victoria’s other key transport agencies. – is among the highlights of a busy 2017-18 year. V/Line undertook significant work to prepare the Gippsland line for the running of its first VLocity train on 26 August and the August 2018 timetable which will see the life of the Avon River Bridge extended while works are undertaken to replace it. James Pinder Chief Executive Officer MSR01744 Annual Report 2017-18_2.indd 6 3/12/2018 3:40 PM Section One – Year in Review 7 Manner of Establishment and Responsible Ministers This is the annual report of V/Line Corporation V/Line Corporation and V/Line Pty Ltd (V/Line) and its wholly owned subsidiary V/Line V/Line Corporation was established as a Pty Ltd. statutory corporation in July 2003 and V/Line is governed by the Transport Integration continues under the Transport Integration Act 2010, which sets out its objectives and Act 2010. On 14 October 2008, V/Line functions, and the State-Owned Enterprises Act Corporation was declared a state business 1992. It operates as a not-for-profit corporation. corporation pursuant to the State-Owned V/Line is responsible to the Victorian Minister Enterprises Act 1992. for Public Transport and the Victorian Treasurer. V/Line Corporation has an independent Board This report provides a summary of our key appointed in accordance with the Transport activities and financial performance for the Integration Act. period 1 July 2017 to 30 June 2018. V/Line Corporation is the sole shareholder of V/Line Pty Ltd. In April 2017, Parliament Transport for Victoria passed the Transport Integration Amendment V/Line is part of Victoria’s integrated transport (Head, Transport for Victoria and Other portfolio, Transport for Victoria.