VICTRACK ANNUAL REPORT 2006 – 2007 CONTENTS 2006-07 Highlights 2 Members of the Board and Board Committees 30 Report from the Chair 4 Executive Team and Organisation Structure 31 Report from the Chief Executive 6 Corporate Governance 32 Improving and Managing Victoria’s Rail Assets 8 Statutory Information 34 Driving Commmercial Services 12 Financial Performance 36 Delivering Innovative Property Solutions 14 Statutory Statement 37 Developing Victoria’s Rail Capacity 18 Independent Audit Report 38 Preserving Victoria’s Rich Rail Heritage 20 Victorian Rail Track Financial Report 40 Supporting Environmental Sustainability 24 Disclosure Index 72 Managing and Developing Our People 28 LETTER TO THE MINISTER 20 September 2007 The Hon Lynne Kosky MP Minister for Public Transport and the Arts Level 26, 80 Collins Street Melbourne Victoria 3000 Dear Minister, I have much pleasure in submitting the Annual Report for VicTrack for the period of 1 July 2006 to 30 June 2007 for your presentation to Parliament. Yours sincerely Elana Rubin Chair Cover image courtesy of Department of Infrastructure. Authorised and produced by VicTrack, GPO Box 1681, Melbourne, Vic, 3001 Printed by John Herrod & Associates, 46 Lexton Road, Box Hill, Vic, 3128 Designed by Blenheim Design Partners, www.blenheimdesign.com.au DELIVERING VALUE FOR VICTORIANS VicTrack is a commercially driven and socially responsible organisation that protects and adds value to Victoria’s public transport infrastructure and land. It manages around $50 million worth of projects each year on behalf of the Victorian community. Victorian Rail Track (VicTrack) was created on 1 April 1997 under The majority of these assets are leased to the Director of Public Section 8 of the Rail Corporations Act 1996. It is a Government Transport. The Director then sub-leases the assets to various Business Enterprise, reporting to the Minister for Transport. transport operators and track access providers. VicTrack is the custodian of strategic rail assets including: Under the leases to the Director, VicTrack has the right to undertake • land and interests in the land commercial activities in the areas of telecommunications, property • overhead wiring leasing and licensing, outdoor advertising and commercial property • track development. In undertaking its commercial activities, VicTrack • power substations must not, however, adversely interfere with transport operations. • signals • rolling stock In addition, VicTrack performs a range of important social • buildings and structures and environmental activities including proactive environmental • communications networks management, maintenance of rail heritage assets, and • communications base stations provision of leases to non-profit community organisations at nominal rates. VICTRACK 2006-07 ANNUAL REPORT | 1 2006-07 HIGHLIGHTS Image courtesy of Department of Infrastructure. 2 | VICTRACK 2006-07 ANNUAL REPORT DELIVERING 37 passive to active crossing upgrades across the state against a target of 30 for the year. UPGRADING Horsham and Nhill stations and installing safety fencing at 20 regional stations. EXTENDING VicTrack’s fibre network between Caulfield and Frankston and Parkville and Clayton, providing additional broadband access and links to participating universities and tertiary institutions. COMPLETING a state-of-the-art facility to provide back-up services to Metrol, the central control centre for Melbourne’s public transport system. PROVIDING technical expertise and advice to the state during negotiations with Pacific National to buy-back its lease to the Victorian Regional Rail Network. COMPLETING five whole-of-municipality land management plans, which provide VicTrack land-use blueprints for the municipalities of Moreland, Wyndham, Yarra Ranges, Brimbank and Moira. BRINGING the administration of hundreds of rural and community leases in-house to better manage and service the leases. RELOCATING VicTrack’s head office from Collins Street to 1010 La Trobe Street at Docklands to improve the productivity of staff across the organisation. VICTRACK 2006-07 ANNUAL REPORT | 3 REPORT FROM THE CHAIR Elana Rubin VicTrack’s charter is to ensure its assets make a commercial return for the state while at the same time, supporting the Victorian Government’s broader sustainability agenda. I am pleased that over the 2006-07 financial year, the business has again generated financial, social and environmental benefits for the state and for the communities in which it operates. While the Annual Report will outline some of this year’s highlights in detail, I would like to draw out some of the major achievements for 2006-07. Delivering for the Community Delivering for Government This year, VicTrack’s most important achievement, from a VicTrack continues to make available its resources and expertise community safety perspective, has been the development and in support of state and local government policy, programs and successful implementation of its accelerated level crossing projects. upgrade program. Over the 2006-07 financial year, Rail Business played a critical VicTrack has worked closely with stakeholders, government part in advising the Victorian Government on key elements of departments and the industry to develop a new process for the the buy-back of the Regional Rail Network lease from Pacific Victorian Government’s level crossing program. This ensures all National. the necessary resources are in place to manage the upgrades efficiently and expediently. We also played a significant role in maintaining the strong growth in container traffic through the Port of Melbourne by stepping in As a result of this detailed work, VicTrack was able to complete to manage Dynon Intermodal Terminal after it was divested by 37 pedestrian and rail crossing upgrades during the 2006-07 Toll Holdings. financial year – seven more than the original target and 17 more than in the previous financial year. In addition, works were The Property Group has worked closely with five local councils undertaken on a further six level crossings to make them safer to develop Municipal Strategic Plans to assist local councils pro- for people with disabilities. actively identify and appropriately develop surplus VicTrack land. A reflection of the success of this collaboration is the growth in For the 2007-08 financial year, VicTrack has adopted an ambitious demand for the service, and the division has undertaken to deliver target of 40 upgrades, together with other level crossing a further 15 Municipal Strategic Plans over the next 12 months. works that have been commissioned as part of the Victorian Government’s response to the tragic Kerang level crossing Partnerships with VicUrban, Department of Infrastructure and the accident in June 2007. Department of Human Services have also resulted in identifying, providing and developing VicTrack land to deliver a diverse range VicTrack also continues to provide community benefit through of offerings including light office space, aged care facilities and its Community Leasing program. This year the program has freight terminals. undergone restructuring, placing greater focus on service delivery and making it more flexible and responsive to the varied needs of And, the Commercial Group continues to support a range of state the not-for-profit and community sector. government departments, as well as the private sector, through its provision of world-class telecommunications infrastructure, Seeing Eye Dogs Australia now has a new, accessible exercise including the recent completion of a Fibre to the Node Next area in Kensington for their dogs to use as result of a successful Generation Network. community leasing agreement negotiated with VicTrack. The environmental and social work we have undertaken this year across the business has once again provided an estimated $27 million in community benefits. 4 | VICTRACK 2006-07 ANNUAL REPORT Right: Minister for Public Transport and the Arts, Lynne Kosky, MP (right), with VicTrack Chair, Elana Rubin, at the Minister’s opening of VicTrack’s new offices. Delivering for the Future With Appreciation VicTrack is an agency that operates very much in the present, with People are VicTrack’s greatest asset and this year in particular, an eye on the future. We take our role as custodians of community our people have really risen to the challenge to meet, and in assets very seriously and aim to ensure they are maintained in many cases exceed, their targets despite participating in a major way that reflects community expectations over the long-term. internal cultural change program – Project Newstart – and moving offices from Collins Street to 1010 La Trobe Street. The assets we protect and manage are diverse – from heritage stations, such as Maryborough, which is undergoing a $1.6 On behalf of the Board, I would like to thank them for their million renovation, and rail and tram rolling stock, through to the commitment and ongoing efforts. rare grassland ecosystems that remain on our land. I would also like to thank VicTrack’s Chief Executive Officer, VicTrack is proud of its initiative to help protect what remains John Sutton, not only for his strong leadership of the organisation of our native grasslands from further destruction. VicTrack’s again this year, but for putting VicTrack in an excellent position Environment division has continued its partnership with Landcare to continue delivering on all its responsibilities – economic, through the “Grassroots” program to fund community initiatives environmental and social – into the future. that specifically