2012-13 Annual Report Letter to Ministers 11 September 2013 The Hon Terry Mulder MP The Hon Michael O’Brien Minister for Public Transport Treasurer Level 16, 121 Exhibition St Level 4, 1 Treasury Place Melbourne VIC 3000 Melbourne VIC 3002 Dear Ministers I have much pleasure in submitting the Annual Report for VicTrack for the period 1 July 2012 to 30 June 2013 for your presentation to Parliament. Yours sincerely Bob Annells PSM Chair Front page images: Artist’s impression of Jewell Station Precinct (main picture) and (l-r) Dynon Rail Freight Terminal hardstand replacement; LandCare volunteers tree planting on VicTrack land at Point Lonsdale; unified communications at V/Line’s headquarters. Contents l 1 Contents Part One – About VicTrack 2 VicTrack – a snapshot 2 Chair’s Report 3 Core functions and business units 5 Part Two – Outcomes Report 6 Delivering value to transport 6 Delivering value to whole-of-government 10 Part Three – Statutory and Financial Reporting 11 Corporate governance 11 Statutory information 16 Financial performance 16 Independent Auditor’s Report 18 Statutory Statement 20 Comprehensive Operating Statement 21 Balance Sheet 22 Statement of Changes in Equity 23 Cash flow Statement 25 Notes to the Financial Statement 30 June 2013 26 Disclosure Index 77 Appendices 79 Crossing Upgrades 2012-13 79 Board members 80 Consultant table 82 Executive team and organisation structure 83 Mission, vision, values 84 2 Part One: About VicTrack VicTrack – a snapshot Victorian Rail Track VicTrack’s core functions are to VicTrack is the custodial owner – VicTrack – is a state- deliver telecommunications to of Victoria’s railway land and also owned business enterprise support the operation of public its infrastructure and, through transport; to be the custodian of the Rolling Stock Holding group that plays a pivotal role land set aside for transport purposes; of companies, much of its rolling supporting the Victorian to dispose of or develop land surplus stock. Almost all these assets are Government to provide to transport requirements; provide leased to Victoria’s rail and tram better public transport civil engineering services to operators via Public Transport outcomes without relying upgrade transport infrastructure Victoria (PTV). The operators on government funding. and to support rail freight by are responsible for managing managing an important open the assets and delivering public access terminal in Melbourne. transport services. With strong support across the Created in 1997, VicTrack is a Victorian Government, VicTrack State Owned Enterprise with an has proactively extended its independent Board reporting to telecommunications infrastructure its sole shareholder, the Victorian to provide much needed Government. VicTrack reports broadband and other IT services to both the Minister for Public to the wider government sector. Transport and the Treasurer and This has also increased VicTrack’s operates under the Transport revenue base. Integration Act 2010. The IKON Glen Waverley development The revenue generated through VicTrack works closely with PTV, is on track for completion by the end of 2013. VicTrack’s activities funds its the Department of Transport, operations and projects and the Planning and Local Infrastructure large financial obligations that (DTPLI), the Department of come with its extensive land Treasury and Finance, public and telecommunications assets. transport franchisees, the VicTrack has from its inception Department of State Development, been self-funded. Business and Innovation (DSDBI), telecommunications carriers, Through its revenue, VicTrack VicRoads, local councils and a funds a wide range of social and broad range of other stakeholders environmental activities, including: and community groups. • a significant ongoing program of land decontamination, asbestos identification and removal and flora and fauna management • providing 400 leases of railway land to local councils and community groups at non- commercial rentals, and • the restoration of heritage rail buildings and other assets. Part One: About VicTrack l 3 Chair’s Report VicTrack has continued to A key objective is to be self-funding, Work progressed on the exercise its responsibilities in that the revenue derived from preliminary design stages of the to be the custodian of land managing VicTrack’s large property planned new Grovedale station assets, including the sale and near Geelong and on behalf of set aside for transport development of surplus land, and PTV, VicTrack provided more than purposes, to provide funds from telecommunication 550 new commuter parking spaces telecommunication services activities enable VicTrack to at stations across metropolitan to enable the public transport operate without relying on funding Melbourne. via the State Budget. network to operate, and VicTrack’s telecommunications to undertake a range of To date VicTrack has been able to network is a critical infrastructure commercial and custodial meet this objective, but to continue asset for the State and an essential activities in line with its charter. to do so has expanded the range service for all Victorians. Without and scope of its commercial it, and the expertise of VicTrack’s activities wherever prudent to do so. technical staff, rail services could not operate. Work continued with During the year VicTrack PTV and Victoria’s train operators energetically pursued its mandate on a range of technology projects to provide enhanced public to improve the reliability, safety and transport outcomes without accessibility of public transport. relying on State Budget funding, resulting in a number of significant VicTrack completed the fibre achievements across its wide transmission network for a digital spectrum of activities. train communication system for metropolitan rail services and With specific funding provided by VicTrack’s unified communications to date has made an investment platform provides smarter and more the State Government, VicTrack in the project of approximately efficient communications to public upgraded 35 level and pedestrian transport partners. $10m from its own funds. crossings across the State, nine Significant progress was also more than the year’s targets. This made in rolling out a modern included completing 16 projects digital communications system funded under the Government’s Fix for V/Line that replaces out-dated Country Level Crossings Program, technology. which has boosted the impact of the ongoing upgrade program. VicTrack also delivered a new unified communications platform VicTrack also oversaw the to V/Line during the year. This has installation of 80 km/h speed placed VicTrack at the forefront of signs at rail crossings on local providing smarter and more efficient roads across Victoria, and worked communications technology to our closely with VicRoads on projects public transport partners. to integrate road and rail signalling. 4 Part One: About VicTrack Chair’s Report (continued) VicTrack continues to proactively With the strong support of successful year. My sincere thanks use the extensive assets under the Victorian Government, go to the current Board members its control to deliver improved VicTrack continued to progress Sam Andersen, Brian Bullus, David telecommunication services to opportunities to partner with the Hunter, Jenny Roche, Michael the wider government sphere. private sector to improve station Trumble and Deputy Chair Yehudi This has also delivered new precincts and contribute to urban Blacher. revenue streams. Completion of renewal. In this vein, a place- I would also like to thank the work on the $10 million Victorian making project was concluded for Minister for Public Transport, Terry Fibre Strategy along the Geelong- a potential development at Jewell Mulder, for his continued strong Warrnambool rail corridor is an station and significant planning support and interest in advancing exciting initiative that will enable work undertaken for future residential the ability of the organisation to high capacity broadband that will developments at a number of deliver transport and broader improve the delivery of health, suburban train station precincts. government outcomes. education and other government The IKON Glen Waverley services for south west Victoria. The efforts and commitment of development has reached ten VicTrack staff under the leadership storeys and is on track for of new Chief Executive Campbell completion at the end of 2013. Rose deserves particular In discharging its extensive acknowledgement. VicTrack’s custodial obligations, VicTrack workforce has delivered impressive spent $10.8 million on activities results across the board in a resulting from 80 asbestos audits, challenging financial environment. 30 remediation assessments and Finally, I would also like to maintenance reviews of numerous acknowledge Cynthia Lahiff for heritage buildings. leading the organisation for a In a separate project, considerable substantial period during the year. VicTrack has played a key role in the resources were devoted to the delivery of more than 550 extra commuter Ballarat Station Precinct Masterplan parking spaces across the metropolitan rail network. Minister for Public Transport process, which will examine the Terry Mulder (centre) with Members for future use and development of the Western Region Bernie Finn (left) and Andrew Elsbury are pictured at the North site over the next 50 years. Bob Annells PSM Williamstown station. VicTrack’s achievements are only Chair possible through close collaboration