Victorian Ports Corporation (Melbourne) Street address Level 5, 530 Collins Street Melbourne Victoria 3000 Australia Postal address GPO Box 261 Melbourne VIC 3001 Australia Tel: +61 3 8347 8300 Fax: +61 3 8347 8301 www.vicports.vic.gov.au Annual Report Ports Corporation (Melbourne) 2018-19 Victorian Department of Transport Authorised by the Victorian Government. This publication is produced by Victorian Ports Corporation (Melbourne). Proudly designed and produced by abCreative productions www.abCreative.com Printed on 100% recycled paper. ANNUAL REPORT 2018-19 Responsible Body’s declaration The Hon. Melissa Horne MP Minister for Ports and Freight 1 Spring Street Melbourne Victoria 3000 The Hon. Tim Pallas MP Treasurer 1 Treasury Place East Melbourne Victoria 3002 Dear Ministers, Victorian Ports Corporation (Melbourne) 2018-19 Annual Report I have much pleasure in submitting to you the Annual Report of Victorian Ports Corporation (Melbourne) for the period 1 July 2018 to 30 June 2019, in accordance with the provisions of the Transport Integration Act 2010 (Vic) and the Financial Management Act 1994 (Vic). Yours sincerely, James Cain Chairman 28 August 2019 Victorian Ports Corporation (Melbourne) 2018-19 Annual Report 1 2 Victorian Ports Corporation (Melbourne) 2018-19 Annual Report Contents Responsible Body’s declaration 1 Section 1: Year in review 5 From the Chairman 6 From the Chief Executive Officer 7 Mission, vision and values 8 An overview of VPCM 9 Manner of establishment 9 Purpose and responsibilities 9 Functions, objects and powers 10 Significant legislative changes 11 Ministerial Direction 11 Operations review 12 Financial information summary 17 Section 2: Governance and organisational structure 21 Corporate governance 22 Directors 23 Board and Committee meetings 25 Organisational structure 26 Executive Management Team 27 OH&S and employment principles 28 Section 3: Workforce data 31 Our people 32 Public sector values and employment principles 32 Comparative workforce data 32 Section 4: Other disclosures 35 Local Jobs First 36 Disclosure of government advertising expenditure 36 Consultancy expenditure 37 Information and Communication Technology expenditure 37 Disclosure of major contracts 38 Freedom of Information 38 Compliance with building and maintenance provisions of the Building Act 1993 (Vic) 39 Competitive Neutrality Policy 39 Compliance with the Protected Disclosure Act 2012 (Vic) 39 Statement of availability of other information 40 Attestation for financial management compliance with Ministerial Standing Direction 5.1.4 41 Section 5: Financial statements 43 Section 6: Appendices 105 A - Disclosure index 106 B - Statement of Corporate Intent 108 Victorian Ports Corporation (Melbourne) 2018-19 Annual Report 3 4 Victorian Ports Corporation (Melbourne) 2018-19 Annual Report Section 1: Year in review Victorian Ports Corporation (Melbourne) 2018-19 Annual Report 5 From the Chairman The international and coastal trade through the port that planning, extensive community consultation is vital to the Victorian economy. Victorian Ports was undertaken to ensure the local community’s Corporation Melbourne (VPCM) is responsible needs and expectations are clearly understood. for providing safe, efficient access to the ports of Melbourne and Geelong, and ensuring these I would like to thank my fellow Board members for gateways for cargo and passengers are open for their contribution over the year. On behalf of the business every day. We are also responsible for the Board, I thank the Chief Executive Officer, Rachel operation of Victoria’s premier passenger terminal Johnson, and the management and staff of VPCM at Station Pier. for their hard work and dedication through another very busy year. Consistent with previous years we find ourselves operating in a changing and increasingly The challenges and opportunities for VPCM exist demanding environment. The global shipping fleet in a complex environment. Looking ahead we are is continuing to change with larger vessels calling at committed to continuing to plan for sustainable Australian ports. At the same time the demand from growth and work cooperatively with our customers, the cruise industry and in particular the appeal of partners and the community to support the Melbourne as a cruise destination has also grown. important contribution the port makes to Victoria. The strength of the Victorian economy and growth in population throughout Melbourne reinforces the need for the port to understand and respond to community expectations. Our focus is to ensure that the management of vital port infrastructure continues to meet the needs James Cain of customers, stakeholders and the Victorian Chairman community into the future and I am pleased to report that over the 2018-19 year there have again been significant achievements. VPCM is introducing newer, improved technology to enhance the safety of vessel navigation and management. Last year, the leading edge version of the dynamic under keel clearance system was commissioned to assist safe access to Port Phillip Bay and the port of Melbourne while the project to install a new Vessel Traffic Services system for improved vessel management and safety in port waters continued. The successful trials for accommodating larger container vessels at Webb Dock and Swanson Dock are continuing. They involve using innovative operating procedures which are made possible through close cooperation between VPCM, Port of Melbourne, the marine pilots, towage companies and the shipping lines. In terms of infrastructure needs, we have continued our planning for capital works at Station Pier to accommodate the growing cruise industry as well as the daily ferry service to Tasmania. As part of 6 Victorian Ports Corporation (Melbourne) 2018-19 Annual Report From the Chief Executive Officer The year 2018-19 saw both consolidation and We continued our support for the wellbeing of preparation for a coming growth phase for the the marine environment in Port Phillip Bay by organisation. once again donating to The Nature Conservancy, assisting with its program of re-establishing The growing international cruise ship and domestic shellfish reefs in the bay. ferry industries are central to our planning for Station Pier. It is vital that we can meet the I thank the Chairman and Board of Directors for future needs of these customers by delivering their work in providing direction and support during sustainable growth at the same time as meeting the the year and setting the path for VPCM. I also expectations of the local community. want to thank the Executive Management Team and the staff for their commitment and work during As part of our continued planning for improved another busy year and express my appreciation for infrastructure and operational solutions at the pier everything we achieved together in 2018-19. we consulted widely with industry and the local community to determine their needs and views. To complement our consultation with the cruise lines we undertook a survey of cruise passengers to help us understand their experience at Station Pier and the surrounding area. Rachel Johnson Input from all these groups helped inform our Chief Executive Officer business case for development; this was submitted to the Victorian Government for consideration as the development phase approaches. Asset management is key to our provision of facilities and services, now and in the future, and we have strengthened our management processes in this area. As part of our asset management, between cruise seasons we continued our maintenance program on the Station Pier structure and both of its terminal buildings. Our project to install an upgraded Vessel Traffic Services system will ensure we can meet the future marine and navigation needs of shipping lines and the port of Melbourne while delivering enhanced safety, productivity and efficiency. As part of our commitment to provide a safe workplace for our staff, contractors and visitors we have revised our drug and alcohol policy to require everyone to be drug and alcohol free in our offices and at our work sites. I want to give credit to all our staff for the way they have embraced the new zero tolerance level and participated in the random testing. Victorian Ports Corporation (Melbourne) 2018-19 Annual Report 7 Mission, vision and values Our mission We contribute to the enhancement of the economic and social prosperity for the people of Victoria by providing vital infrastructure and services for trade and tourism. We do this by: • ensuring safe and efficient navigation of vessels • providing essential connectivity to Tasmania • realising Victorian trade and tourism opportunities for seaborne passengers and freight. Our vision We will be recognised for providing Victoria’s premier gateways for trade and tourism. Our values • Safety - we lead the way in the provision of safe navigation and services. • Innovation - we deliver excellence in sustainable and practical solutions. • People - we support, respect, and challenge each other – we value diversity. • Customers and communities - we put our customers and communities at the centre of everything we do. • Integrity - always. 8 Victorian Ports Corporation (Melbourne) 2018-19 Annual Report An overview of VPCM As a result of a Machinery-of-Government change Tourism gateway effective on 1 January 2019, the Department of VPCM manages Station Pier as Victoria’s Economic Development, Jobs, Transport and premier cruise shipping gateway. The pier also Resources (DEDJTR) became the Department