annual report 2008-2009 - V/Line

V/LINE PASSENGER PTY LTD 

ABN 29 087 425 269 

GPO Box 5343 

Melbourne VIC 3001 

HEAD OFFICE/ADMINISTRATION 

Level 23, 570 Bourke Street 


Telephone (03) 9619 5900 

Facsimile (03) 9619 5000 

vline.com.au 

CUSTOMER INFORMATION, 

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Telephone 136 196 

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Freecall 1800 800 120 

All information correct at time 

of printing, October 2009. 

ANNUAL REPORT 

2008–2009

V/Line is Australia’s largest regional public transport operator, serving Victoria with more than 1400 train and 600 coach 

services per week. In 2008–09, a record 13.17 million passenger trips were made on our services. 

This is the annual report of V/Line Passenger Corporation 

We are also a major employer, with a workforce of 1382 employees – many of whom live in regional Victoria. 

V/Line is a not-for-profit operator, fully owned by the State of Victoria, with train services running between Melbourne 

and the following townships: 

(VLPC) and its wholly owned subsidiary, V/Line Passenger 

Pty Ltd (VLPPL). V/Line complies with two sets of governance 

requirements – those applying to VLPC as a statutory 

corporation and a state business corporation, and those 

• Geelong, South Geelong, Marshall and Warrnambool 

• Melton, Bacchus Marsh, Ballarat and Ararat 

• Sunbury, Kyneton, Bendigo, Swan Hill and Echuca 

• Seymour, Albury / Wodonga and Shepparton 

• Traralgon, Sale and Bairnsdale. 

applying to VLPPL as an entity incorporated under the 

Corporations Act. As a franchisee, V/Line must also fulfill 

its contractual obligations under the franchise agreement 

with the Victorian Department of Transport (Director of 

Public Transport). 

Coach services connect with the rail network and serve regional Victorian communities where trains do not operate. 

Some coach services run interstate, to South Australia, New South Wales and Canberra. These coaches are operated by the 

V/Line is responsible to the Victorian Minister for Public 

Transport and the state’s Treasurer. 

private sector under contract to the Department of Transport. 

We also operate and maintain 3770 kilometres of broad-gauge rail track used by the passenger and freight rail services 

following the Victorian Government’s buy-back of the regional network and access business from Pacific National and 

This report provides a summary of V/Line’s key activities 

and financial performance for the period 1 July 2008 to 

30 June 2009. 

Contents 

transferral to V/Line in May 2007. 

VISION 

While V/Line is well known in regional Victoria as a passenger service operator, we are also an access provider to freight 

Connecting Victorian communities and industry. 

operators who use our rail network to transport goods across the state. In recognition of this important economic role, on 

14 October 2008, V/Line Passenger Corporation was also declared a state business corporation under the State Owned 

Enterprises Act 1992. 

Cover: Bendigo Station Officer David Neven and Kathryn Mackenzie, from the City of Greater Bendigo. 

Opposite: Ballarat Area Services Manager Michael Richardson and Sovereign Hill’s Director of Commercial Operations, 

Richard Berman-Hardman, at the award-winning tourist attraction. 

MISSION 

To deliver safe, reliable, accessible and sustainable 

passenger and freight transport services. 

VALUES 

• Put our customers first 

• Be honest 

• Take responsibility 

• Strive for excellence 

• Treat people and the environment with respect 

With SAFETY being paramount in all we do. 

Letter to the Minister 02 

Key partnerships 04 

Strategic agenda 05 

Chairman’s report 06 

CEO’s report 10 

Year in review 14 

Passenger network map 16 

Key results 17 

Facts and figures 18 

Safety and security 20 

Our customers 26 

Sustainability, environment 

and community 32 

Our people 40 

Operations 44 

Fleet 50 

Infrastructure 54 

Victorian rail network map 59 

Finance 60 

Corporate governance 64 

Executive team 68 

Financial statements 69 

Energy Efficiency Opportunities 

Program – Public Report 93 

Disclosure index 97 

section 

01

13 October 2009 

The Hon. Lynne Kosky 

Minister for Public Transport 

Level 16, 121 Exhibition Street 


Dear Minister 

It is with pleasure that I present the annual report for V/Line Passenger Corporation and V/Line Passenger Pty Ltd (V/Line) 

covering the financial year 1 July 2008 to 30 June 2009. 

This period was the third consecutive year of considerable passenger growth for V/Line, with over 13 million trips made on our 

train and coach services – another record. 

Passenger trips on train services have increased by a remarkable 79 per cent in the four years since 2005–06, representing 

a major shift in the travel habits of regional Victorians. 

This growth in passenger numbers is a testament to the recent years of investment in regional rail infrastructure, rolling stock 

and staff – investment that is now enabling many people to live in the country and travel daily to Melbourne for work. 

A key focus of this report is V/Line’s partnerships with our many community, business and government stakeholders, which help 

us deliver our essential service to regional Victoria. It is through these partnerships that V/Line has grown so rapidly, and it is 

with our partners that we will continue to improve our services. 

V/Line again continued to make financial efficiencies during the year, and as a not-for-profit business, our financial result for 

2008–09 was in line with expectations. 

The coming years present another exciting era for regional public transport, following government commitments to build the 

nation’s biggest ever rail project – Regional Rail Link. 

Again, I thank the state government for its ongoing partnership with V/Line, and on behalf of the board and management 

look forward to expanding the V/Line network further in 2009–10. 

Yours faithfully 

Minister for Public Transport Lynne Kosky and Deputy Director of Public Transport, Bus and Regional Services, 

Sergio Lacchiana, at the completion of construction of Wendouree Station in Ballarat. 

Frank Tait 

Chairman 

V/LINE ANNUAL NUA 

REPORT RT 

2008-2009 

0 2 009 

09 

LETTER TO THE MINISTER 2/3

key partnerships 

Strategic agenda 

To deliver our regional transport services, V/Line partners 

with a range of stakeholders, including: 

• Assetco Management Pty Ltd, trading as Southern 

Cross Station Pty Ltd (SCSPL) – manager of 

Southern Cross Station 

• Australian Rail Track Corporation (ARTC) – access provider 

for the main interstate corridors. V/Line will require access 

to provide the Albury service after the broad gauge line is 

converted to standard gauge 

• Connex – metropolitan train operator and access provider 

to the metropolitan network 

• Bombardier – manufacturer and maintainer of our VLocity 

train fleet 

• Councils – V/Line works with regional municipalities to 

meet the transport needs of their communities 

• Department of Transport (DOT): 

– Public Transport Division (PTD) – administers V/Line’s 

franchise agreement, regional infrastructure lease, subsidy 

payments, and V/Line branded coach contracts 

– Infrastructure Projects Division (IPD) – 

implements government rail projects 

– Public Transport Safety Victoria (PTSV) – 

administers the rail safety accreditation system 

– Freight, Logistics and Marine (FLAM) – 

administers government freight policy 

• Downer EDI Rail (EDI) – maintains our locomotive-hauled 

and Sprinter fleets and the VLocity fleet as sub-contractors 

to Bombardier 

• Essential Services Commission (ESC) – 

administers the Victorian Rail Access Regime 

• Independent Transport Safety and Reliability Regulator 

(ITSRR) – administers rail safety regulation in New South 

Wales (V/Line operates some broad gauge track in 

southern NSW and will operate on the standard 

gauge in Albury/Wodonga from 2010) 

• Metlink / Viclink – call centre and journey planner 

provider as well as advocate for public transport 

• Transport Ticketing Authority (TTA) – responsible for 

developing the new myki smartcard for Victoria with 

Kamco, the successful tenderer for the project. 

TTA also assumed responsibility for management 

of V/Line’s ticket agents in 2008–09 

• rail freight operators, including Pacific National 

and El Zorro – users of the regional network 

• Victorian Managed Insurance Authority (VMIA) – 

provides the majority of V/Line’s insurance requirements 

• Victorian Government – the Minister for Public 

Transport and the Treasurer 

• VicRoads – major partner in our work to improve level 

crossing safety as the authority for main roads 

• VicTrack – owner of rail infrastructure which is leased 

to V/Line and other operators either via the Director of 

Public Transport or directly. 

V/Line also partners with a wide range of suppliers who 

deliver goods and services essential to our business. 

V/Line’s strategic agenda 

SAFETY AND SECURITY 

RETAIN AND GROW REPUTATION 

SHAREHOLDER SATISFACTION 

AND FINANCIAL RESPONSIBILITY 

GROW THE BUSINESS 

‘ON-TIME’ AND ‘IN-FULL’ SERVICE DELIVERY 

CUSTOMER SATISFACTION 

V/LINE’S OBJECTIVES: 

Continuously improve safety and 

security in all aspects of 

our operations and business. 

Be an integral and 

respected organisation in 

the Victorian community. 

Be recognised by the government 

as demonstrating strong 

governance, efficient operations 

and financial responsibility. 

Sustainably grow patronage and 

freight volumes year-on-year. 

Improve service delivery each year. 

Ensure our reputation for excellent 

service stands out, with customer 

satisfaction the highest among 

transport operators and access 

managers. 

Be recognised as an employer of 

choice in the Australian rail 

industry, with a positively 

motivated, engaged and 

skilled workforce. 

Contribute to the sustainability 

of Victorian communities and 

the environment. 

EMPLOYEE SATISFACTION 

COMMUNITY AND ENVIRONMENTAL RESPONSIBILITY 

V/LINE ANNUAL REPORT 2008-2009 

STRATEGIC AGENDA 4/5

‘Nation building’ has become a popular and bold term 

PATRONAGE A GROWTH WELL L MANAGED 

A used to describe the major road and rail infrastructure 

In 2008–09, we recorded more than 13 million passenger 

projects which will shape Australia’s physical and 

trips – a 10 per cent increase on last year. While the term 

economic landscape. 

‘unprecedented’ features regularly in this report, it is the 

During the year it was announced that Victoria will play a 

major role in this vision, with unprecedented investment 

from the federal and state governments for Regional Rail 

word that best describes this territory for V/Line, and 

particularly our frontline staff who manage our growth 

professionally on a day-to-day basis. 

Link. This $4.3 billion project is set to increase services 

This massive growth has it roots in the Regional Fast Rail 

across the V/Line and metropolitan rail networks and 

project that started in 2003 and resulted in vastly improved 

will be one of the biggest infrastructure projects Victoria 

services. This in turn led to patronage records being 

has ever seen. 

smashed every year since as more people saw the benefits 

This investment signals confidence in the future of Victoria’s 

public transport system and recognises the challenges we 

face as a result of our record patronage growth. 

On completion of Regional Rail Link, our Geelong, Ballarat 

and Bendigo customers will experience improved reliability 

as a result of the construction of up to 50 kilometres of 

new track in Melbourne’s western suburbs, avoiding the 

bottleneck in the metropolitan network. For the first time, 

V/Line’s regional trains will have their own track space and 

will not have to compete with busy metropolitan trains. In 

practical terms, it is expected the project will provide the 

capacity for more than 20 extra train services every hour 

across these three lines. 

of country rail over the car. In 2006 we saw the introduction 

of thousands of extra services and the roll-out of 40 new 

VLocity trains. The following year, fares were cut by an 

average of 20 per cent at a time of rising petrol prices, 

giving people a major cost incentive to make the switch. 

In this reporting year, we have seen the first 14 of up to 74 

more V/Line carriages roll off the production line following 

an extension of the state government’s commitment to more 

rolling stock. These carriages have been deployed across 

the network to services most in need, providing an extra 

76 seats per carriage on heavily patronised trains. In another 

first, these extra carriages helped create our first sevencarriage 

VLocity trains on the Geelong line – the largest 

passenger trains in Victoria. 

Start of Regional Rail Link works at Southern Cross Station. 

v 

Victorian Premier John Brumby and Federal Transport Minister Anthony Albanese welcome the start of works on the 

$4.3 billion Regional Rail Link project, which will boost capacity by separating regional and metropolitan trains in Melbourne’s west. 

V/LINE ANNUAL N A REPORT R 2008-2009 

0 2 0 0 CHAIRMAN'S REPORT 6/7

I commend the government for its ongoing investment in 

regional public transport. V/Line’s services have become 

vastly more attractive over the past few years following 

major spending on the Regional Fast Rail project and the 

initial purchase of new VLocity trains. However, we will 

soon embark on the next new and exciting era in V/Line’s 

evolution with the latest round of fleet purchases and 

the government’s commitment to Regional Rail Link. Our 

customers have welcomed this major investment through 

the high satisfaction rating they continue to give V/Line and 

through the record numbers in which they continue to use 

our services. 

ENCOURAGING N G FURTHER R SUSTAINABLE S A GROWTH 

V/Line has a close relationship with country Victoria and 

people in the regions can see for themselves the benefits 

and importance of our service. However, the Melbourne 

market has proven to be somewhat elusive and slower to 

see the massive change for the better on regional trains. 

It is a sign that our rapid growth in the regions has been so 

well managed by the government and V/Line that we have 

the confidence to stimulate new markets and continue to 

grow in a sustainable way. To this end, we have worked hard 

to encourage Melburnians into regional Victoria through our 

See Things Differently marketing campaign, and in return we 

are beginning to see some good results. 

The campaign in the metropolitan area started in November 

2008 and aimed to boost regional train tourism through TV, 

print, outdoor and online advertising. The campaign 

objective was to get Melburnians to shift perceptions to 

showcase the ‘new V/Line’. 

Our partnerships with the state government, regional 

councils, business and tourism operators will continue to 

benefit country Victoria and V/Line alike as we look for 

new ways to promote the regions and new-found 

competitiveness and comfort of our services. 

THE FUTURE 

U Our challenge is to keep pace with demand, and the 

Regional Rail Link will allow us to do just that. But bold 

projects of this scale require considerable investment which, 

in Australia, has traditionally been the sole domain of state 

governments when it comes to public transport. 

While major new roads infrastructure has attracted massive 

investment from the Commonwealth, federal spending 

on rail transport has been previously limited to intrastate 

freight projects. For this reason, the $3.2 billion secured 

from the federal government is a landmark shift in transport 

priorities (the remaining $1.1 billion for this project will be 

met by the state). 

The project promises to stimulate the economy in the 

long term and sustain jobs. It is also the biggest single 

investment in the metropolitan rail network since 

Melbourne’s underground City Loop was built. 

THE V/LINE TEAM 

The dedication of our staff and management team 

has been outstanding during this very busy year and it 

is our grass-roots customer focus that stands us apart. 

I thank the entire V/Line team for another excellent year – 

my sixth as chairman. 

I would also like to thank my fellow board members for 

their hard work in what has proven to be a challenging and 

rewarding year, particularly the hard-working Catherine 

Scott who retires from the board after serving as deputy 

chairperson. Welcome to Fiona Bennett and David 

Worth who joined us this year, bringing fresh ideas and 

contributions to the table. 

I look forward to an exciting 2009–10 as we see projects 

grow from seed and as we watch customers reap the 

benefits of projects that have already begun. We have our 

challenges cut out for us granted, but the future is bright 

as we continue to provide regional Victoria with this vital 

service. 

Frank Tait 

Chairman 

> 

V/LINE TRAIN AND COACH C PASSENGER S E TRIPS 

HAVE INCREASED E BY 82 PERCENT E OVER FIVE YEARS 

04–05: 7.25 million 

05–06: 7.64 million 

06–07: 9.72 million 

07–08: 11.96 million 

> 

08–09: 13.17 million 10% 

* Includes Department of Transport privately marketed coaches. 

– Rail patronage by line detailed on pg 30. 


CHAIRMAN'S REPORT 8/9

The 2008–09 year has seen the strengthening of 

This is an excellent result considering that three of our 

partnerships between V/Line, our staff and the many 

five rail corridors were shut down by the 7 February ‘Black 

regional communities we serve. 

Throughout the year we met with 34 regional councils, a 

range of government departments, MPs, business groups 

and community organisations to better understand the 

changing transport needs of country Victoria. We also 

continued our successful on-train consultations to give 

Saturday’ bushfires. Fires swept through the township 

of Wandong, destroying the station’s platform, pit, 1200 

sleepers and two rail bridges on the Seymour line. Fire also 

burned more than 3000 sleepers on the Warrnambool line 

near Camperdown; and although the Gippsland line was not 

damaged, it closed for a day due to the proximity of fires. 

Track works at Maryborough Station. 

v 

our customers direct access to senior management, and 

we continued to work with hundreds of local suppliers and 

service providers across the state to further spread the 

economic benefits of our service. 

More than $1 million worth of damage was caused to 

V/Line infrastructure, and considering the scale of the 

damage, the fact that Seymour and Warrnambool line 

services were disrupted for just nine days was nothing 

CEO's report 

r V/Line CEO Rob Barnett and infrastructure worker Terry Pring at Maryborough Station. 

These partnerships have not only helped us improve 

our service dramatically in recent years and facilitated 

unprecedented growth, but they have also paved the 

way for us to continue to grow. 

MEETING E THE CHALLENGE L E OF EXTREME E E WEATHER 

E Perhaps the greatest test of our staff was the heat wave that 

swept Victoria during January and February, with several 

days above 40 degrees, power black-outs, heat-related train 

speed restrictions and the devastating impact of bushfires. 

A proactive, well-planned and coordinated response with 

government agencies and other transport operators saw 

nearly all V/Line services run. All but 41 out of 11,834 

scheduled services over those two months either ran 

normally or were replaced with road coaches. Of this 20 of 

those couldn’t be replaced as road access was cut off during 

the peak of the bushfires. 

short of remarkable. Without our dedicated, in-house 

infrastructure team (which has only been part of V/Line for 

the past two years), it is highly unlikely that such a quick 

recovery would have been possible. I am extremely proud 

of the response not only of our infrastructure workers, but 

also our operations team who were constantly in touch with 

emergency services to safely plan road coaches. 

EXPANDING N OUR SERVICES 

E S 

Customer confidence is demonstrated not only in our high 

satisfaction rating of 78.4, but in our record patronage – 

the ultimate guide to how we’re performing as an operator. 

Such massive support for regional train services has 

encouraged further state government investment in 

infrastructure, including the opening of Ballarat’s second 

railway station at Wendouree during the year. In December, 

the government also made an unprecedented commitment 

to public transport in its Victorian Transport Plan, which 


0 2 0 0 CEO'S REPORT 10/11

includes a new Regional Rail Link to provide extra dedicated 

This project, which will be completed by the Australian Rail 

Our staff lost-time injury frequency rate and customer 

CONTINUING N I N TO BREAK RECORDS 

R Total income for the V/Line business was up 13 per cent 

regional train tracks through Melbourne’s western suburbs. 

While Regional Rail Link is expected to take five years to 

complete, within our sights is the return of train services to 

Maryborough, which was also announced in the transport 

plan. This promises to be a boon to the V/Line business 

because the reopening of the lines to Ararat and Bairnsdale 

five years ago have been strongly supported by communities 

in those regions and we expect the same from Maryborough. 

Creswick Station will also be re-opened as part of this project, 

with a daily return service to provide access to education 

and employment opportunities in Ballarat, as well as health 

and retail services in Ballarat and Melbourne. Passenger 

services are expected to return in the second half of 2010. 

Nearing completion is the North East Rail Revitalisation 

Project which is converting 200 kilometres of track between 

Albury and Seymour from broad to standard gauge. 

In May 2009, the Bairnsdale community celebrated five years 

since the return of their train services. > 

Track Corporation next year, will deliver a more reliable and 

comfortable service to our Albury / Wodonga line customers. 

OUR SAFETY FOCUS 

As we grow at a rapid rate, so too must our systems, to 

ensure our excellent safety record is not compromised. 

Ongoing training and procedure improvements, as 

part of our Rail Resource Management pilot program, 

have contributed to the good safety results. This includes 

management programs to make sure staff have the right 

equipment to safely carry out their jobs and understand 

the importance of reporting all issues regardless of how 

insignificant they may seem. 

Emergency and crisis management training continued to be 

a focus this year, with key staff tested in a range of scenarios 

to ensure V/Line is well-prepared to help our customers and 

emergency response agencies in the event of an incident. 

incidents within our control were on par with last year at 

12.1 per million hours worked. While it is pleasing that there 

has been little change despite record patronage, this result 

also demonstrates that we must remain vigilant to drive a 

reduction in incidents. 

Another area of ongoing safety focus is level crossings. 

Our partnerships with VicTrack, the state government, 

Department of Transport, VicRoads and regional councils 

has seen many crossings upgraded throughout the year, 

and direct V/Line maintenance work has been carried out 

at many to improve sightlines. This work will intensify in 

the coming year as we work with road owners to implement 

safety interface agreements to continually improve safety at 

road–rail intersections. 

More than 13 million passenger trips were made on V/Line 

trains and coaches for the first time in Victorian history – a 

massive endorsement of recent years of investment in regional 

rail. This is a 10 per cent increase on last year’s patronage and 

extends the record–breaking era after a 27 per cent increase 

in 2006–07 and a 23 per cent increase in 2007–08. 

At the same time, our infrastructure team delivered a major 

maintenance works program on our passenger network. 

This included platform and stabling extensions to cater for 

longer trains with extra seating capacity, and the replacement 

of more than 114,000 sleepers across the state. 

The ongoing maintenance program has continued to produce 

tangible benefits for our customers as it has been a major 

factor in train punctuality on our regional network improving 

for the third year in a row to 95.2 per cent on time, despite 

extreme weather challenges. This is an excellent result and 

also demonstrates the success of our operations team in 

managing patronage growth so well. 

Similarly, major maintenance was undertaken on the rail 

freight network with 59,000 sleepers replaced to improve 

freight movements across Victoria. 

FINANCIAL N I A PERFORMANCE 

R E 

As more people travel by train and coach, V/Line becomes 

more financially efficient and the benefit of our service to the 

Victorian economy more evident. The subsidy per passenger 

trip dropped again this year to $19.42, from $19.88 last year 

and $22.74 in 2006–07 – an ongoing improved return on 

the taxpayer’s investment. 

to $465.2 million. This included a 15 per cent increase 

in farebox revenue to $68.6 million, and a 12.7 per cent 

increase in government subsidies to $255.6 million. 

However, expenses also rose 12 per cent to $471.6 million, 

with cost increases in train maintenance and coaches as we 

travel further. Revenue from freight access fees continues 

to be poor as a result of the drought’s impact on harvests. 

In 2008–09, just $2.7 million was gained from access 

charges (down from $4.5 million in 2006–07) – well below 

the considerable cost to maintain the extensive freight rail 

network. 

As V/Line is a not-for-profit business funded on a cash 

basis by the Department of Transport, accounting standards 

require a deficit to be reported as asset depreciation and 

other non-cash expenses are not funded. As a result, V/Line 

this year reports a consolidated loss before tax for the year 

of $6.4 million (down from $9 million last year and 

$23.3 million in 2006–07). As a business charged with 

maintaining a currently under-utilised freight network, this 

financial result is in line with expectations. However, a 

breaking of the drought and return to better freight traffic 

may improve the financial result in future years. 

THE YEAR AHEAD 

A The past year is one of many accomplishments and I thank 

the entire V/Line team for an outstanding contribution. 

However, the coming year promises to be equally busy 

as we prepare to return passenger trains to Maryborough 

and works start on Regional Rail Link. 

I also thank our many partners across regional Victoria for 

their support, whether for providing goods and services to 

our business, for representing the transport needs of 

their communities, or for travelling with us in record 

numbers yet again. 

It’s an exciting time for public transport in Victoria, 

and V/Line is proud to be leading the switch back to 

train and coach travel. 

Rob Barnett 

Chief Executive Officer 


CEO'S REPORT 12/13

JANUARY 

Year in review 

e AUGUST 

SEPTEMBER 

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IMPROVING OUR CUSTOMER COMMUNICATION 











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> 

V/Line boosts train maintenance MARCH 

APRIL 

and readies a fleet of 80 coaches Passengers made a record 1.097 V/Line’s support of the 

to support trains as Victoria 

million trips on V/Line trains 

Castlemaine State Festival sees 

experiences one of its hottest 

during the month – boosted 

28 per cent or 3570 people from 

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MAY 

More than 400 Bairnsdale 

residents welcome a special 

anniversary train to the station 

in celebration of five years 

since trains returned to the 

Gippsland town. 

AUGUST 

Works start to lengthen 

platforms on the Geelong line 

to accommodate seven-carriage 

VLocities – the longest 

passenger trains in the state. 

NOVEMBER 

The last passenger train runs to 

the old Wodonga Station ahead 

of works to upgrade the line 

and construct a new station in 

Wodonga as part of the North 

East Rail Revitalisation Project. 

DECEMBER 

The state government 

announces its $38 billion 

Victorian Transport Plan which 

will deliver new V/Line trains, 

station upgrades, return services 

to Maryborough and dedicated 

tracks for V/Line on part of the 

metropolitan network. 

FEBRUARY 

Black Saturday bushfires 

temporarily close the Gippsland 

line and burn sections of track at 

Wandong and Camperdown. 

V/Line crews mobilise quickly to 

replace over 3000 sleepers and 

two bridge decks. 

APRIL 

More than 7000 people and 

businesses with land adjoining 

V/Line’s tracks were contacted 

as part of a special campaign 

to encourage farmers to better 

secure animals to prevent the 

deaths of sheep, cows and other 

livestock on train lines. 

APRIL 

The V/Line Life Training program 

re-launches with a broader 

community focus to bring 

information sessions about 

depression, drugs and binge 

drinking to teenagers in 

12 regional towns. 

MAY 

The Victorian and federal 

governments jointly announce 

the biggest investment in 

Victorian regional rail history, with 

$4.3 billion committed to a new 

Regional Rail Link to give V/Line 

trains on the Geelong, Ballarat 

and Bendigo their own tracks 

through metropolitan Melbourne. 

V/LINE ANNUAL N A REPORT R 2008-2009 0 2 0 0 YEAR IN REVIEW E 14/15 

1

Passenger s e network map 

Pinnaroo 

To Adelaide 

To Adelaide 

To Adelaide 

Mt Gambier 

Mildura 

Ouyen 

Robinvale 

Manangatang 

Piangil 

Swan Hill 

Sea Lake 

Finley 

Barham 

Deniliquin 

Hopetoun 

Kerang 

Tocumwal 

To Sydney 

Birchip 

Mulwala 

To Canberra 

Cohuna 

Barmah 

Corowa 

Pyramid 

Moama 

Cobram 

Rutherglen 

Echuca 

Nathalia 

Yarrawonga 

Albury 

Numurkah 

Wodonga 

Nhill 

Warracknabeal 

Rochester 

Kyabram 

Donald 

Shepparton 

Springhurst 

Dimboola 

Wedderburn 

Stanhope 

Wangaratta 

Beechworth 

Murtoa Rupanyup St Arnaud 

Elmore 

Benalla 

Horsham 

Dunolly Bendigo 

Murchison 

East 

Bright 

Mt Beauty 

Heathcote 

Mansfield 

Stawell 

Maryborough 

Castlemaine 

Seymour 

Avoca 

Wallan 

Mt Buller 

Halls Gap 

Kyneton 

Yea 

Ararat 

Daylesford 

Lancefield 

Creswick Woodend 

Whittlesea 

Glenthompson 

Sunbury 

Skipton 

Ballarat 

Melton 

Hamilton 

Bacchus 

Ringwood 

Maffra 

Casterton 

Marsh 

Bairnsdale Orbost 

Werribee 

Mortlake 

Derrinallum 

Warragul 

Geelong Melbourne 

(see inset) Dandenong 

Lakes Entrance 

Heywood 

Lara 

Camperdown 

Sale 

Lang Lang 

Traralgon 

Koroit 

Portland 

Port Fairy 

Terang 

Korumburra 

Colac 

Leongatha 

Anglesea 

Anderson 

Warrnambool 

Lorne 

Wonthaggi 

Yarram 

Cowes 

Inverloch 

Cape 

Port Campbell 

Apollo Bay 

Paterson 

Griffith 

TO BALLARAT 

Melton 

TO GEELONG 

TO BENDIGO 

Sunbury 

Watergardens 

Cann River 

To Canberra 

TO SEYMOUR 

Broadmeadows 

Rockbank 

Essendon 

Sunshine North Melbourne 

Footscray Flinders Street 

Newport 

Richmond 

Werribee 

Southern 

Cross 

Station 

Caulfield 

Clayton 

(Spencer Street) 

Geelong line train service 

Ballarat line train service 

Bendigo line train service 

Seymour line train service 

Gippsland line train service 

Coach service 

To Narooma & 

Batemans Bay 

MELBOURNE 

METRO 

Dandenong 

Berwick 

Pakenham 

TO GIPPSLAND 

Key results 

CHANGE 



> 

2007 


Total customer trips (rail & coach) 10% 13,169,434 11,960,167 

Rail passenger trips 9.5% 12,050,176 11,008,229 

Coach passenger trips* 17.6% 1,119,258 951,938 

Tickets sold 18.2% 5,136,692 4,344,8816 

Farebox revenue 15% $68.6 million $59.6 million 

Farebox (% breakdown) 1% 71% full fare 72% full fare 

1% 29% concession 28% concession 

Subsidy per passenger trip 2.3% $19.42 $19.88 

Short-distance services 2.3% 61,882 † 60,510 

Long-distance services 10.6% 11,238 † 12,568 

Fleet: 

> 

> 

> 

> 

> 

< 

> 

< 

> 

< 

> VLocity carriages 17.5% 94 80 

> 

> Locomotives – 41 41 

> Loco-hauled carriages – 138 138 

> Sprinters (single-unit) – 21 21 

Stations 1.2% 83 82 

> 

Employees (total head count) 4.7% 1382 1320 

> 

* Includes DOT privately-marketed coaches. 

† 

Short-distance services increased (and long-distance services decreased) as a result of Albury trains being stopped short at Seymour during track upgrade works. 

> 

V/LINE ANNUAL REPORT 2008-2009 KEY RESULTS S 16/17 

1

Facts and figures 



> 

2007 


> 



> 

2007 


> 



> 

2007 


> 



> 

2007 


> 

CUSTOMERS 

SAFETY 

OPERATIONS 

FINANCE 

Passenger trips (rail and coach)* 13.17 million 11.96 million 

> 

Customer satisfaction index 

(DOT target 68) – Trains 74.8 76.7 

Customer satisfaction index – Coaches 79.2 80.3 

No. of customer information enquiries 781,328 803,016 

No. of customer feedback cases 

about V/Line 13,582 12,225 

No. of on-train consultation 

sessions with customers 13 12 

Compensation paid to customers 

for V/Line not meeting on time targets 

(complimentary ticket value) $112,481 $67,140 

< > > > > > > < < < 

EMPLOYEES 

Total employees 1382 1320 

Full-time equivalent staff 1365.3 1291.6 

Training attendance numbers 5312 4372 

Training sessions 446 565 

All of V/Line lost-time injury frequency 

rate (LTIFR) per million hours worked 

(within V/Line’s control) 12.1 12.03 

Above-rail LTIFR per million 

hours worked (within V/Line’s control) 15.4 13.8 

Above-rail LTIFR per million 

hours worked – with stress & trauma 40.1 28.2 

Below-rail LTIFR per million 

hours worked (within V/Line’s control) 5.2 8.1 

Below-rail LTIFR per million 

hours worked – with stress and trauma 5.2 9.4 

Customer incidents within V/Line’s 

control per million passengers 

– requiring medical assistance 0.68 0.64 

Total customer incidents per million 

passengers – requiring medical assistance 3.95 2.01 

Signals passed at danger 

(SPADS per million km) – human factor 0.72 0.14 

> 

> 

> 

> > > < < 

Reliability overall (short & long distance 

services, average monthly performance) 98.3% 98.7% 

Reliability – short distance 98.1% 98.5% 

Reliability – long distance 99.4% 99.7% 

Punctuality overall outside metro network 

(short & long-distance services on time 

to 5 and 10 mins respectively, 

average monthly performance) 95.2% 94.5% 

Punctuality 

– short distance on time to 5 minutes 85.5% 86.1% 

Punctuality 

– long distance on time to 10 minutes 87.8% 86.5% 

No. of services run – short distance 61,882* 60,510 

No. of services run – long distance 11,238* 12,568 

The reliability target is 96% and punctuality target is 92%. 

< 

< 

< 

< > > < > 

* Short-distance services increased (and long-distance services decreased) as a result of Albury trains 

being stopped short at Seymour during track upgrade works. 

Revenue from 

operational activities $381.2 million $328.3 million 

> 

Farebox $68.6 million $59.6 million 

> 

Government subsidies $255.6 million $226.7 million 

> 

Other $57.0 million $42.0 million 

> 

Revenue from 

non-operational activities $84.0 million $83.6 million 

> 

* Includes DOT privately-marketed coaches. 


FACTS AND FIGURES 18/19

At Mitiamo, 70 kilometres north of Bendigo, teamwork between V/Line, VicRoads and Victoria Police saw the upgrade 

of a level crossing ahead of schedule. The site at Bendigo–Pyramid Hill Road was the scene of a fatal car accident in 

February 2008, which had a profound impact on all three organisations. 

The teams jointly undertook a site inspection to plan the road and rail upgrade, then partnered to source suppliers 

that could immediately deliver the upgrade work. 

Work began days later, and in January 2009 the $300,000 crossing was opened – helping to increase the safety of 

the hundreds of vehicles and V/Line trains that operate through this crossing each year. 

Victoria Police have also worked to enforce traffic rules at the upgraded intersection to ensure motorists obey speed 

restrictions and crossing warnings. 

This enforcement activity is mirrored across the state, supporting the ongoing level crossing upgrade work undertaken 

by VicTrack on behalf of the state government, which saw safety improved at a further 45 crossings during the year. 

Partnering r n with Victoria i Police and VicRoads 

to make level e l crossings s s safer 

Victoria Police Senior Constable Dale Lewis, V/Line’s Peter Upton, and VicRoad’s Jim Mensforth at the upgraded Mitiamo crossing in Victoria’s north-west. 

Opposite page: Enforcing speed limits at level crossings in the Colac area. 


20/21 

2

Despite the massive growth of V/Line over the past few 

The only statistically significant shift in safety performance 

MANAGING A N G A SAFE RAIL ENVIRONMENT 

N E N To capitalise on the training and further improve internal 

1992 (DDA) standards – well ahead of the required 50 per 

years, our safety performance remains generally on par 

was the staff lost-time injury frequency rate with stress and 

V/Line’s Rail Resource Management pilot program started in 

efficiencies, V/Line also combined emergency management 

cent compliance by December 2012. 

with the pre-growth era of 2005–06. 

Passenger trips have jumped by 79 per cent and staff 

numbers have increased by 62 per cent over the past four 

years. While there has been no major improvement in the 

safety statistics, it remains a significant achievement that 

such rapid growth has not had an adverse affect on the safe 

operation of the network. 

SAFETY PERFORMANCE 

R E 

For incidents within V/Line’s control, the staff lost-time 

injury frequency rate (LTIFR) per million hours worked was 

maintained at 12.1 in 2008–09 (12.03 the previous year). 

Customer incidents within V/Line’s control also saw little 

change with 0.68 requiring medical assistance per million 

passengers (0.64 in 2007–08). 

Analysis of customer incidents shows most incidents relate 

to slips, trips and falls – particularly among the elderly. 

This will remain a focus in coming years as V/Line works to 

continually improve access for people with special needs, 

to maintain or reduce the low level of incidents despite an 

ageing population travelling more frequently. 

A detailed review of the cause of incidents involving staff 

is the current focus and the findings will be incorporated 

into general awarness of the working environment training 

in 2009–10 to further make staff conscious of potential 

hazards and the need to report issues immediately. 

trauma. This rate increased to 40.1 per million hours worked 

in 2008–09 (up from 28.2 last year). Unfortunately, this area 

of lost time is largely outside V/Line’s control, and reflects 

the trauma experienced by train drivers in particular involved 

in near misses of pedestrians or vehicles, and trespassers 

on the network. 

Another key safety performance measure is the number 

of signals passed at danger (SPADs) by trains. No ‘human 

factor’ SPADs resulting in train-to-train collisions took place, 

with incidents involving human error at 0.72 per million 

kilometres in 2008–09 – one of the lowest incident rates in 

Australia. This is in line with the 2006–07 result of 0.8 but 

an increase on last year’s low rate of 0.14. 

An internal SPAD working group started during the year to 

review individual incidents in significant detail and make 

specific changes to V/Line’s infrastructure and operations 

to reduce reoccurrences. Work has now been completed to 

improve signalling behaviour at locations where multiple 

incidents have occurred in recent years to complement the 

research and training undertaken by V/Line to determine 

contributing causes of SPADs. 

2008–09 to mitigate the potential for incidents in V/Line’s 

operation by promoting the optimal use of all available 

resources – such as information, equipment, and people – 

to achieve safe and efficient operations. 

It encouraged teamwork within the train crew environment, 

with a focus on threat and error management. Similar 

programs have proved successful in the airline industry, 

and V/Line piloted this program during the year, with a plan 

to roll it out across the business in 2009–10. 

During the year, V/Line also partnered with several key 

emergency response agencies to conduct an emergency 

exercise, as part of the Terrorism & Community Protection 

Act 2003, to test its response to both a security incident and 

a major accident. 

Held near Colac in October 2008, the exercise saw over 

20 V/Line staff partnering with the Department of Transport’s 

Security and Emergency Management Division, Ambulance 

Victoria, the Country Fire Authority, State Emergency 

Service and Victoria Police to manage the response and 

recovery. The exercise scenario was complex and involved 

the temporary shutdown of a section of the Warrnambool 

line, but it provided significant learning opportunities for all 

agencies involved and helped to establish a number of key 

relationships that have the potential to prove critical in the 

event of a genuine emergency situation. 

systems for its daily operations and track and civil 

maintenance areas. The systems were separate following 

V/Line’s acquisition of Pacific National’s ‘below rail’ network 

and access operations in 2007. This integration has also 

included the addition of V/Line’s revised environmental 

emergency management systems. 

BETTER T E DISABILITY I I ACCESS 

C S 

In addition to system and training improvements made 

in 2008–09, engineering modifications to our trains also 

helped make the network safer during the year. 

Ongoing train improvements helped improve access for 

mobility-impaired passengers, with new wheelchair ramps 

rolled out for all V/Line trains. Previous versions of the 

ramps were only suitable for wheelchairs due to the way 

they folded for storage. However the new model can now be 

used by people with walking frames, or those unable to step 

up onto vehicles. This was a significant improvement which 

successfully re-engineered the ramps, while still remaining 

lightweight and portable for conductors to use. 

As V/Line continues to roll out a new VLocity carriage each 

month, the quantity of fully accessible vehicles increases 

(and will do so until at least 2012). Additionally, 

refurbishments to the older Sprinters and locomotive-hauled 

N- and H-Set carriages have resulted in better access to toilet 

facilities and wheelchair-friendly facilities. At year’s end, 

88 per cent of the fleet met Disability Discrimination Act 

Engineering improvements were also made to stations, 

including the ongoing resurfacing of platforms to provide 

smoother surfaces, installation of tactile strips for the 

visually impaired, and installation of better signage. 

During the year, four platforms were resurfaced and tactiles 

were installed at Gisborne, Riddells Creek, Lara, Shepparton, 

Warrnambool and Ballarat. Better lighting was installed at 

eight stations, along with several yards and shunting areas 

across Victoria. A major program to install hearing loops at 

regional stations also started, with installations completed 

at 36 stations, with this program set to continue throughout 

2009–10. 

IMPROVING I TRAIN SAFETY 

Almost half the fleet now has high-visibility yellow reflective 

strips added to the fronts of the vehicles to improve safety 

at level crossings. As Sprinters and locomotive-hauled 

carriages undergo refurbishments and the VLocities enter 

their major maintenance cycles, the visibility enhancements 

are made. 

Onboard the trains, every door on every carriage across the 

V/Line fleet became fully automatic from March 2009 

following the completion of an upgrade to our N-set 

carriages over the past few years. The automation of doors 

prevents a passenger manually opening a door while the 

train is moving. 

V/Line Risk and Safety Improvement Programs Manager 

Scott Ryan undertakes a routine inspection 

at Southern Cross Station. 

v 


SAFETY AND SECURITY 22/23

THERE WERE FIVE SERIOUS LEVEL CROSSING INCIDENTS 

ON V/LINE’S REGIONAL NETWORK DURING 2008–09: 

Red Cliffs – 22 February 2009 

A Pacific National freight train clipped a car at Sunny Cliffs Avenue level crossing. 

The motorist sustained minor injuries. 

OTHER SIGNIFICANT INCIDENTS IN 2008–09 INCLUDED: 

Kilmore East Station – 13 March 2009 

A teenage pedestrian sustained non-life threatening injuries after being hit by a Pacific 

National freight train at a pedestrian crossing. The pedestrian alighted from a V/Line service 

at Kilmore East and crossed into the path of the freight train. 

Rosedale – 9 January 2009 

A V/Line Bairnsdale train collided with a ute which was allegedly stationary on a private 

(occupational) crossing. The car occupant was injured in the incident. 

Rochester – 21 September 2008 

A V/Line train struck a car at the Northern Highway level crossing. It is alleged the car stopped 

on the crossing (which was fully operational), then reversed to clear the crossing as the train 

approached. The front bumper of the car scraped the train. No injuries. 

Red Cliffs – 16 September 2008 

A Pacific National freight train collided with a ute at the Sunny Cliffs Avenue level crossing. 

No injuries. 

Litchfield – 26 August 2008 

Minor collision between a V/Line ballast regulator and a truck. No injuries. 

INCIDENTS INVOLVING V/LINE ON THE CONNEX METROPOLITAN NETWORK: 

Hoppers Crossing Station – 6 March 2009 

A pedestrian sustained non-life threatening injuries after being clipped by a 

Geelong-bound V/Line train while crossing at the pedestrian crossing. 

North Melbourne Station – 17 November 2008 

A cyclist accidentally fell off the platform at North Melbourne Station into the path 

of a V/Line train, sustaining fatal injuries. 

Oak Park – 22 October 2008 

A V/Line Sprinter train and ute collided at the Devon Road level crossing. 

Boom gates were operating correctly. No injuries. 

ROAD COACH INCIDENT: 

A V/Line branded coach, operated by South Western Roadways and under contract with the 

Department of Transport, was involved in a tragic accident on 16 April 2009 at Heathmere 

where three people died. No other vehicles were involved in the accident. 

Southern Cross Station yard – 6 March 2009 

Two V/Line VLocity trains were involved in a minor collision while shunting in the yard. 

Both units sustained mirror and window damage. 

Camperdown, Longwarry and Kilmore East / Wandong areas – 7 February 2009 

Black Saturday bushfires closed part of three of V/Line’s five corridors. Fire destroyed 3000 

sleepers in the Camperdown area on the Warrnambool line. The damage was greater in the 

north-east, with 1200 sleepers, the Wandong Station platform and two rail bridges destroyed. 

The Gippsland line at Longwarry was not damaged, but closed on advice from emergency 

services for 24 hours due to the proximity of the Bunyip State Forest fire. 

Bacchus Marsh – 29 January 2009 

Temporary suspension of Ballarat line trains on the advice of the CFA due to a grass fire in the 

Bacchus Marsh area. No damage to track infrastructure. 

Malmsbury – 22 January 2009 

Temporary suspension of Bendigo line trains on the advice of the CFA due to a large fire in the 

Malmsbury area. No damage to track infrastructure. 

Southern Cross Station Yard - 26 November 2008 

A V/Line Sprinter train struck a ‘Vehicle Under Repair’ banner which had been left in place by 

EDI fitters who had completed work on the train. No injuries and no damage to the train. 

Pyramid – 11 October 2008 

Minor derailment of a V/Line ballast regulator during works. 

Lake Boga – 17 July 2008 

A V/Line train struck maintenance equipment left on the line. Minor damage to the train. 

No injuries. 

• Incidents involving trespassers are not included above. 

Another notable onboard safety improvement was the 

withdrawal of the sale of alcohol from on-train catering 

services in December 2008. This move won many customer 

compliments and widespread community support as part of 

work to strengthen the family-friendly environment on long 

distance services. 

AUTHORISED OFFICERS 

F Following a trial in 2008, a team of six authorised officers 

were formally introduced onto V/Line services from January 

2009. While authorised officers have the power under the 

Transport Act 1983 to report fare evasion, they have been 

primarily deployed for staff and passenger security, rather 

than revenue protection. 

While behaviour issues on V/Line’s network are statistically 

low in comparison with the Melbourne network, the 

response to the authorised officers’ presence on board 

V/Line services has been very positive, with customer 

feedback supportive of expanding their presence. As well as 

helping to reduce anti-social behaviour at stations and on 

trains, the officers have also identified the perpetrators of 

repeated vandalism to rail infrastructure. 

LEVEL E L CROSSING S SAFETY 

There were no fatalities on the V/Line regional network at 

level crossings as a result of accidents with trains during 

2008–09. 

While this is excellent news after three fatalities the previous 

year, the behaviour of some motorists at level crossings 

remains an ongoing concern. Five collisions involving 

V/Line or another operator on our network occurred during 

2008–09. Complacency, lack of attention to warnings, 

and risk-taking behaviour have been the key factors behind 

near misses. 

While engineering upgrades to crossings continue to 

be rolled out by VicTrack, with 45 crossings made safer 

across Victoria in 2008–09, motorists must take shared 

responsibility for their safety by obeying the warnings and 

road rules. 

Mutual responsibility for level crossing safety is one of 

the pillars of the Rail Safety Act 2006, which legislates a 

requirement for all parties – such as rail operators, councils, 

road authorities and local land owners – to have a Safety 

Interface Agreement (SIA). SIAs set out an organisation’s 

responsibilities – both broadly across the whole state and 

specifically at each crossing. In the long term it will help us 

take consistent and appropriate action to prevent accidents 

at level crossings. V/Line is working with councils and other 

authorities to establish agreements in regional Victoria, 

and we expect the SIA process will be completed by mid- 

While V/Line’s core responsibility is the maintenance of level 

crossings across regional Victoria, we have a range of active 

roles in advocating change. V/Line’s Chief Executive Officer 

is now a member of the government’s Victorian Railway 

Steering Committee on Level Crossings, which advises the 

Minister for Public Transport on improving safety at crossings 

and makes recommendations to the Minister regarding 

upgrades and closures throughout Victoria, which are statefunded. 

V/Line also has an internal level crossing committee 

which conducts a detailed review of site distance; a key 

factor in establishing danger levels at each crossing site, 

and has started work on a vegetation removal program to 

improve sightlines. 

During 2008–09 V/Line also wrote to about 3500 

landowners adjoining rail reserves to encourage animal 

owners to cross the train lines safely with their stock and 

equipment by providing contact details for the train control 

centre. The special campaign – a first of its kind in Australia 

– also reminded farmers of their obligations to ensure their 

fences did not allow animals to stray onto railway lines. 

2010 for public access road level crossings. 


SAFETY AND SECURITY 24/25

Customer growth of 79 per cent over four years on our network is an excellent result which now makes 

V/Line Australia’s largest regional train operator. 

However, in a business reliant on infrastructure and heavy vehicles, such rapid growth also has potential to 

cause significant growing pains in the form of overcrowding and reduced customer satisfaction. 

Gippsland provides just one example of how V/Line has expanded the service to cater for a growing population 

who are increasingly using country trains as a preferred mode of transport. 

Together with the Department of Transport, several stations on the line have been improved in recent years, 

including Drouin which has been benefited from a station upgrade and new parkway facility with 160 car spaces. 

The Gippsland region has embraced the upgraded train service, more than doubling its passenger numbers in 

just four years. As a result, the timetable has expanded in recent years to offer more services, and more carriages 

are regularly added to these services increase more seating during busy times. 

Strong customer partnerships r p s have helped e us achieve e the 

highest h safisfaction s f a i rating in the Victorian i transport r t industry 

Our customers 

s 

Gippsland-based Services Officer Charlie Grande and customers Sara and Luke at Drouin Station. 


section 

26/27 

2

More people than ever before are catching V/Line trains 

This means more trips are made on V/Line’s trains than on 

The Gippsland line experienced the biggest increase, with 

HIGH H CUSTOMER SATISFACTION S A T I RATING 

KEEPING E CUSTOMERS S 'INFORMED' 

' 

PUTTING T GREATER E R VALUE INTO A V/LINE TICKET 

T 

and coaches around regional Victoria, with total patronage 

any other regional operator in Australia. By comparison, 

patronage up 15 per cent this financial year. Passenger trips 

While the massive and rapid rise in customers would be 

As patronage grows to unprecedented numbers, so does our 

While the cost of V/Line travel has only risen by Consumer 

up 10 per cent on the previous financial year. 

1.6 million passenger trips were made on CountryLink trains 

have more than doubled on the Gippsland line, as they have 

the envy of most businesses, few in the transport sector 

need to get smarter in the way we communicate with our 

Price Index levels since 2007, the relative value regional 

While the rate of growth is slowing from the 27 per cent 

increase in 2006–07 and 23 per cent increase in 2007–08 

across V/Line’s train and coach services, the records 

continue to be re-written as more people choose cheaper, 

more comfortable and environmentally friendly public 

transport over car use. 

In 2008–09, a record 13.17 million passenger trips were 

made on V/Line trains and coaches. Of this, 12.05 million 

trips were made on trains – a 9.5 per cent increase, or 

1.04 million more trips than the 11.01 million recorded the 

previous year. 

in NSW and 926,000 trips made on TravelTrain regional 

services in Queensland in 2007–08. 

However, V/Line coach trips increased more rapidly, rising 

17.6 per cent to 1.12 million passenger trips (951,938 in 

2007–08). 

A NEW GOLDEN ERA OF RAIL 

For the first time, rail patronage surpassed 1940s train 

travel records when few owned cars and trains were the 

main means of transport across regional Victoria. 

In the four years since 2005–06, there has been a 

considerable shift in the way regional Victorians travel, 

and rail passenger numbers have risen 79 per cent. 

on the Bendigo line over the past four years. 

In 2008–09, patronage on the Bendigo line was up 

9.8 per cent, the Geelong line was up 9.5 per cent and 

the Ballarat line increased 12 per cent. 

The new record is all the more significant because the 

Seymour line actually experienced a drop in patronage 

(down 3.6 per cent) due to the temporary closure of the 

line between Seymour and Albury as part of the North East 

Rail Revitalisation Project. 

V/Line’s continued outstanding passenger growth can 

be primarily attributed to the fact that regional Victorians 

are, more than ever, choosing the train as their preferred 

method of transport, particularly during times of economic 

uncertainty and continued high fuel costs. 

would be able to cope logistically with an almost doubling of 

passenger numbers over such a short period. 

The Victorian Government’s commitment to up to 74 new 

carriages – 14 of which were delivered during the year – 

is allowing V/Line to keep up with passenger growth, 

ensuring comfort is not compromised. While several peak 

trains remained very busy, most previously crowded services 

have benefited from extra seating as a new carriage enters 

the network each month. 

This ongoing expansion of the V/Line fleet is a major factor – 

along with affordability and frequency of commuter services 

– in V/Line’s high customer satisfaction rating. 

Quarterly surveys undertaken by the Department of Transport 

continue to show V/Line train and coach passengers as the 

most satisfied of all public transport users in Victoria. The 

satisfaction rating for V/Line trains was 74.8 in 2008–09 

(76.7 last year) and 79.2 for coaches (80.3 last year). 

customers. In 2008–09, two significant innovations to 

V/Line’s business were rolled out to improve information 

provision to our passengers. 

V/Line Inform allows passengers to register their details on 

the V/Line website and indicate services that they usually 

travel on. In the event of a service delay or cancellation 

V/Line Inform sends an SMS or email to individual 

passengers to let them know of the changes. 

The response to V/Line Inform has been outstanding. Since 

its introduction in December 2008, more than 3000 regular 

travellers have signed up to the free service with thousands 

seeing its benefits during Victoria’s period of extreme heat 

in late January and early February 2009, which included the 

Black Saturday bushfires. 

In October 2008, V/Line also launched online ticket sales 

to allow customers to buy individual tickets as well as 

Weekly, Monthly and Date-to-Date passes. The tickets are 

then mailed out to the customer, saving them time waiting 

in queues at busy station ticket offices. The service has had 

customers can take from their ticket has increased 

dramatically in other ways. Not only was metropolitan 

train, tram and bus travel incorporated into the V/Line 

ticket price in 2007, but a range of promotions were 

introduced in 2008–09 to deliver further ‘add-on’ value. 

During the year V/Line established a wide range of 

relationships with major Melbourne cultural institutions 

and events – with the key emphasis on providing 

additional value to V/Line customers as part of their ticket. 

Partnerships established during the year included the 

Melbourne Aquarium, National Sports Museum, Melbourne 

International Comedy Festival, Melbourne Museum’s 

A Day In Pompeii exhibition and National Gallery of 

Victoria’s Salvador Dali: Liquid Desire exhibition. 

With thousands of regional Victorians visiting Melbourne to 

see the successful musical Wicked, V/Line partnered with 

the show to offer a free souvenir show program to patrons 

upon presentation of their V/Line tickets. Take-up was 

strong, with hundreds making the most of this offer. 

a strong take-up, with over 8000 customers booking their 

tickets online in the first six months despite no promotion 

during the early trial stages. The service will be heavily 

promoted in 2009–10 to encourage greater use by periodical 

ticket holders. 

More than 20,000 trips were made to the Australian 

International Airshow on our trains in March 2009. > 


OUR CUSTOMERS 28/29

PERCENTAGE OF ALL RAIL TRIPS BY LINE 

0% 20% 40% 60% 80% 100% 

PERCENTAGE OF ALL TRIPS BY COACH* 

RAIL PATRONAGE BY LINE 

> 

08-09 

07-08 

legend 

08-09 

07-08 

legend 

9.7 14.7 22.2 25.4 28 

11 

14 22 25 28 

seymour gippsland ballarat bendigo geelong 

0% 20% 40% 60% 80% 100% 

1.8 7.1 8.7 10 9.6 11.7 16.5 15.8 18.7 

2 7 8 10 12 12 14 17 19 

north-west goulburn east trans-regional south-east south-west north-east west north 

valley 

* Includes Department of Transport administered coaches. 

geelong bendigo ballarat gippsland seymour 

83.6% over 5 years 132.3% over 5 years 98.8% over 5 years 107.4% over 5 years 17.7% over 5 years 

04–05: 1.84 million* 

05–06: 2.03 million* 

06–07: 2.57 million 

07–08: 3.08 million 

08–09: 3.38 million 9.5% 

> 

> 

04–05: 1.32 million 

05–06: 1.47 million* 

06–07: 2.20 million 

07–08: 2.78 million 

08–09: 3.06 million 9.8% 

> 

> 

04–05: 1.35 million 

05–06: 1.37 million* 

06–07: 1.88 million 

07–08: 2.39 million 

08–09: 2.68 million 12% 

> 

> 

04–05: 0.85 million 

05–06: 0.82 million* 

06–07: 1.05 million 

07–08: 1.54 million 

08–09: 1.77 million 15% 

> 

> 

04–05: 0.99 million 

05–06: 1.05 million 

06–07: 1.15 million 

07–08: 1.21 million 

08–09: 1.17 million* 3.6% 

< 

PUBLIC TRANSPORT R T OMBUDSMAN 

M Victoria’s Public Transport Ombudsman gives customers 

an independent body for the assessment of complaints. 

If customers remain dissatisfied with the response they have 

received from a public transport operator, they have the 

opportunity to have their case reviewed by the Ombudsman. 

In 2008–09, V/Line helped promote the role of the 

Public Transport Ombudsman’s (PTO’s) office through 

customer materials, as well as the regular invitation to 

accompany V/Line management on their monthly on-train 

customer consultations. During the year, the Ombudsman 

independently reviewed 33 cases (out of 73 customer 

contacts with the PTO), compared with up to 64 cases (out of 

100 contacts) last year. In 2008–09 one case resulted in a 

binding decision by the Ombudsman. 

CUSTOMER CONSULTATION T O N AND FEEDBACK 

E Our customer consultation program is an important element 

of our operations. This process sees a team from across 

V/Line’s operations, including the CEO and senior executive 

team, meet with passengers on board services throughout 

Victoria. The process is designed to gauge the opinions of 

customers on the train service. Importantly, the customer 

consultation program provides an opportunity for those who 

may not necessarily contact V/Line with a specific complaint 

or compliment to have their say. Thirteen consultation 

sessions were undertaken during 2008–09, with a stronger 

push to cover the entire V/Line network during both peak 

and off-peak times. 

During the year, compensation in the form of complimentary 

tickets to the value of $112,481 was issued to customers for 

not achieving performance targets. While train performance 

is generally on par with last year, this is a considerable 

increase on the $67,140 worth of tickets issued last year. 

The rise is due in part to the rapid patronage increase, 

as well as greater promotion of the compensation scheme 

in the media. However, customer feedback about V/Line 

increased from 12,225 cases last year to 13,582 cases 

this year. 

Information queries through the V/Line call centre dropped 

three per cent to 781,328 this year (803,016 in 2007–08), 

indicating a growing trend towards the V/Line website as a 

source of customer information. In 2008–09, website visitors 

increased 45 per cent to 3.7 million and page impressions 

grew 33 per cent to 44.4 million. Ongoing upgrades to the 

V/Line website will see it continue to grow as an information 

source throughout 2009–10. 

V/Line partners with Travellers Aid – a service that 

provides help and support to passengers to help them 

reach their destination. 

v 

* Periods of major track upgrade works. 

V/LINE ANNUAL REPORT 2008-2009 OUR CUSTOMERS 30/31

Working with regional councils and tourism operators, V/Line launched the award-winning See Things Differently 

campaign in November 2008 to encourage Melburnians to catch the train to some of country Victoria’s best attractions. 

Making better use of off-peak V/Line trains with spare capacity to create a sustainable economic contribution 

to regional Victoria was the aim of the campaign. 

One of the campaign’s target destinations was the Bendigo and Castemaine region. High-quality events and attractions, 

coupled with a high-quality train service, enticed people out of the city and into regional Victoria. 

Nearly 18,000 extra people caught the train to two major regional events between December and March alone, 

injecting up to $2.3 million into the local economy. 

The extra people travelled to the region by train to attend the Bendigo Art Gallery’s Golden Age of Couture exhibition 

and the Castlemaine State Festival. 

Figures released by the Bendigo Art Gallery show that of the 75,000 people who attended the exhibition, 19 per cent 

or 14,250 travelled to Bendigo on the train. 

The Castlemaine State Festival was another draw card, with a record 51,000 event tickets sold. Half of the estimated 

25,000 patrons who attended the festival came from outside the immediate region and of those, 28 per cent or 

3570 people, travelled to the event by train according to surveys undertaken by festival organisers. 

Partnering r n with local l councils c to 

bring people p e from the city to the regions 

Bendigo Station staff members David Neven and Max Diss join Kathryn Mackenzie, Executive Manager – 

Tourism from the City of Greater Bendigo to promote train travel to the northern Victorian city. 


section 

32/33 

3 3

V/Line’s trains and coaches provide a vital public service to 

regional Victoria, and the nature of our business means our 

social and economic footprint extends beyond just transport. 

As a major employer of country Victorians, manager of 3770 

kilometres of railway track and access provider to the freight 

sector, our stakeholders rightly expect V/Line to deliver more 

than just a reliable public transport service. 

In 2008–09, we worked with councils, MPs, state and 

federal departments, industry groups and businesses to 

better understand our broader role in regional Victoria. 

And to ensure our impact is as positive as it can be, we 

reviewed the way we approach sustainability, environmental 

and community-related issues, and introduced a range of 

internal benchmarks to continually improve the value of 

the business to Victorians. 

STRENGTHENING T E N N G RELATIONSHIPS I S ACROSS S VICTORIA 

I Within all levels of V/Line, staff are encouraged to partner 

with other organisations to not only improve our own 

efficiencies but achieve better outcomes for our customers 

and the broader community. 

Our team of regional managers plays a leadership role in 

improving our connections with the community, essentially 

V/Line sponsored the Castlemaine State Festival in 

March and April 2009. > 

representing something of a ‘front door’ to V/Line for 

each region. Each regional manager lives and works in 

the area they represent – and has a strong knowledge of 

key community issues within the area. To a greater extent 

than ever before, the team of regional managers are now 

considered the first port of call for government and business 

representatives in their regions. 

Our regional and executive managers have also engaged in 

a program of local council consultations across the state. 

During 2008–09, V/Line conducted briefing sessions 

with 34 regional Victorian councils, where key issues of 

service delivery, timetabling and level crossing safety, as 

well as regional events, investment and development were 

discussed. This program will continue to grow in 2009–10. 

SEE E THINGS DIFFERENTLY: 

F E MARKETING V/LINE TO MELBURNIANS 

N Our meetings with regional councils and business partners 

emphasised the view that while V/Line already has a major 

positive economic impact on regional Victoria, it could be 

even greater. 

Working with councils, tourism operators, the Department 

of Transport, Tourism Victoria and the Victorian Government, 

we launched a $1.3 million See Things Differently 

advertising campaign to put V/Line – and regional Victoria – 

into the minds of Melburnians. 

The campaign was the first time in 20 years that V/Line had 

advertised on television. It also included promotion via 

radio, newspapers and billboards (and even a special tram) 

throughout Melbourne to showcase the vastly improved 

V/Line service and the best country Victoria has to offer. 

The pilot campaign encouraged Melburnians to make 

the most of travel opportunities to Geelong, Ballarat and 

Bendigo in particular, and was the winner of the 2009 

Australian Marketing Institute’s ‘Business to Consumer’ 

award in Victoria. Key to its success is that the campaign 

promoted use of off-peak, outbound train services during 

quieter periods such as during the middle of the day, or on 

weekends – making more efficient use of existing services, 

crucial to our push to deliver a more sustainable operation. 

A key element of the campaign was the Family Traveller 

ticket, which allows each adult travelling during off-peak 

times to take up to two children free, making the potential 

for discovering Victoria more affordable. 

Results from the campaign have been very strong. One in 

five people (and one in three families) on target services 

indicated they were travelling because of the campaign, 

and 22 per cent of travellers on target services indicated 

they were travelling with V/Line for the first time. Over 

1000 new trips per week (12,000 in total) were directly 

attributable to the pilot See Things Differently campaign – 

resulting in an estimated $780,000 of economic benefits 

to the target regions over the campaign’s three months, 

and an estimated $3 million in regional spend since the 

campaign was introduced. 

V/Line also partnered with the Castlemaine State Festival in 

March, winning an Australia Business Arts Foundation award 

for the joint promotion. 

COMMUNITY M SUPPORT P TAKES 

V/LINE TO NEW DESTINATIONS 

T I N S 

Regional councils and community partners have welcomed 

V/Line’s continued sponsorship of the Victorian Country 

Football League (VCFL) and several other long-running 

commitments such as Travellers Aid – a service that provides 

travellers with assistance and support to get to where they 

are going. 

Our support of regional Victorian schools also continued, 

through the My Train program which reached record levels in 

2008–09 with 130 schools travelling free on V/Line services 

as part of school excursions. This program provides free 

travel to primary school students throughout Victoria and is 

combined with the Train Training program – which provides 

activity packs to schools to educate children about safety 

around trains and railway stations. 

In 2008–09, V/Line also entered into a partnership with 

Playgroup Victoria, a 50,000-member strong organisation 

that helps families join and organise play groups. This 

partnership provides families with group discounts for 

V/Line travel throughout the state – and provides groups 

with information to build safety awareness among children 

and parents. 

During the year, we also supported a range of other 

community events and activities, including: 

• Mission Australia Family Day, which provides the 

opportunity for over 3,000 migrants, refugees and 

disadvantaged Victorians with the opportunity to enjoy a 

day at Melbourne Zoo – something they simply would not 

be able to afford. Guests at Family Day were provided with 

free travel by V/Line from around Victoria, and the day’s 

activities saw a dedicated team from V/Line volunteering 

at the event. 

• Ronald McDonald House, whose Parkville residence 

provides families of children who are undergoing 

medical treatment at the Royal Children’s Hospital with 

accommodation and support for their time in Melbourne. 

In 2008–09, V/Line established a partnership with Ronald 

McDonald House to provide guests with complimentary 

travel for their journey to and from Melbourne. 

• Regional Achievement & Community Awards, which give 

recognition to some of the ‘unsung heroes’ of regional 

Victoria. V/Line supported both the V/Line Young 

People’s Community Involvement Award and the V/Line 

Volunteering Award at the 2008 event. 

Additionally, on Saturday 2 May 2009, V/Line helped the 

communities of Bairnsdale and Stratford celebrate five 

years since the return of V/Line services to the region at 

a community event held at Bairnsdale Station, that was 

attended by more than 400 people. 

TACKLING TOUGH ISSUES, 

S S BEYOND THE FOOTY O FIELD 

Since 2002, one of V/Line’s most successful community 

relationships has been its long-term partnership with the 

VCFL. This relationship has seen V/Line as the major sponsor 

of the V/Line Cup – considered one of the integral steps in 

the pathway for young country footballers towards AFL-level 

football. The VCFL sponsorship also extends to V/Line Junior 

Carnivals and the V/Line Umpire Development Program. 

However, V/Line’s relationship with the VCFL was taken 

to another level in 2008–09 with the evolution of the 

V/Line Life Training program. The program aims to educate 

teenagers and their families on important health topics 

– and give them the skills to make positive choices when 

difficult issues arise. While this program had been delivered 

in various forms to young footballers over the previous three 

years, it has now been moved from the football field to 

encapsulate a wider audience, ensuring regional Victorian 

teenagers, regardless of gender and whether they play sport 

or otherwise, have the opportunity to take part. 

V/Line continued its sponsorship of the V/Line Cup under 15’s 

football competition – won by Latrobe in 2009. 

v 


SUSTAINABILITY, ENVIRONMENT AND COMMUNITY 34/35

The program sees V/Line ambassador and former AFL star 

Nathan Thompson, joining with industry leaders in the areas 

of depression (Orygen Youth Health), illicit drugs (The 

Victoria Police’s Purana Task Force) and binge drinking 

(Odyssey House) to provide frank, challenging and rewarding 

opportunities for young people to openly discuss these often 

taboo topics. 

Held at 12 locations throughout regional Victoria, the newlook 

V/Line Life Training was attended by over 1200 regional 

Victorian young people in 2008/09 – and will continue to be 

a key element of V/Line’s community 

program during 2009–10. 

ESTABLISHING S I A SUSTAINABILITY S A I I T FRAMEWORK 

R V/Line approved the business’s first sustainability 

framework, covering the four key pillars of our people, 

environment, community, and our market / resources 

to ensure V/Line, our customers, staff and stakeholders 

understand the need to take a proactive approach to 

sustainability issues. It also puts into action the individual, 

proactive objectives the business aims to meet to move 

V/Line from being a business that addresses sustainability 

issues as they arise, to one where these steps are integral to 

the business’s daily operation. 

SETTING T NEW ENVIRONMENTAL N E N STANDARDS 

A D S 

FOR OUR RAILWAYS 

A V/Line makes a substantial environmental contribution by 

encouraging tens of thousands of Victorians to catch more 

efficient public transport rather than use cars for commuting. 

However, with almost 3770 kilometres of railway track under 

our control, including stations, rail yards and a fleet of 

93 individual train sets, V/Line also has many environmental 

challenges. Key challenges relate to management of 

significant vegetation and our dependency on diesel fuel. 

Central to meeting these challenges was the maintenance 

of our ISO14001 Environmental Management Systems 

accreditation for all 83 stations across Victoria, which is a 

significant achievement built on applying and monitoring a 

range of processes at each station. Additionally, certification 

was also achieved for V/Line’s Head Office and fuel point 

operations in 2008–09. 

The Environmental Management System (EMS) puts in place 

the processes for managing the environmental impacts 

of V/Line’s activities for staff and contractors. It provides 

a structured approach to planning, implementing and 

monitoring environmental protection measures – 

such as regular induction, training and assessment of 

environmental awareness. 

In 2008–09, the process of adding the principles of the 

EMS to all contracts with major subcontractors started, 

with a view to ensuring all parties that act on V/Line’s 

behalf share our commitment to the environment and 

understand their shared obligations. This is particularly 

important as we work to improve our environmental 

credentials, after managing two legacy issues during the 

year which pre-date our take-over of the regional rail network 

in 2007, as well as a further three notable environmental 

incidents which occurred during the year – all of which 

involve subcontractors. 

FUELLING L THE FUTURE 

U The push to introduce bio-fuel is one of the key long-term 

plans for V/Line’s operation – with the ultimate objective to 

achieve a B20 (20 per cent blend of biodiesel with standard 

diesel) standard across V/Line’s entire fleet. 

Initial planning undertaken in 2008–09 aimed to determine 

a viable fuel source, before live train testing can commence 

in Ballarat during 2009–10. This testing will aim to confirm 

V/Line’s long-term bio-diesel supplier partner. However, 

introduction of the system would require a significant 

infrastructure and fleet investment, with bio-fuel use 

requiring modifications to refuelling points and vehicle 

fuel systems. 

CONTROLLING O L N WEEDS E AND PESTS 

S 

The vast nature of our rail reserves across country Victoria 

presents a challenge to controlling weeds and pests. 

Throughout 2008–09 V/Line worked closely with the 

Department of Primary Industries, Landcare and farming 

groups to remove noxious weeds across our railway 

property. Recent projects included the removal of gorse – 

a dense, thorny bush – between Castlemaine and Chewton, 

management of serrated tussock on the Sunshine to Ballarat 

corridor, as well as a rabbit control program in Kerang South 

and the Wimmera. 

RECYCLING C ROLLS L OUT 

Initial planning in 2008–09 aimed to determine the 

locations and type of recycling bins to be placed at stations. 

Installation of the recycling bins in 2009–10 will be 

established at Ararat, Ballan, Ballarat, Colac, Echuca, Lara, 

Marshall, Seymour, Shepparton, Swan Hill, Traralgon and 

Warrnambool stations, ensuring V/Line meets its objective 

of reducing station landfill by 10 per cent by 2010. 

ENERGY EFFICIENCIES OPPORTUNITIES PROGRAM 

– PUBLIC REPORT – pg 93. 

V/LINE'S SUSTAINABILITY S A I I T PRIORITIES R I I 2009- 0 2012 

2 

Green stations 

VCFL / youth 

Rolling stock / locomotive service 

Green office 

Sustainable measurement 

Rail reserves 

Green technology 

Industry round table 

Employee development 

Local sourcing 

To save energy and water through improving environmental efficiencies 

at V/Line train stations. 

To increase the support of youth-related activities, events and 

sponsorship between V/Line and regional communities. 

To reduce fuel consumption and corresponding greenhouse gas 

emissions by improving the fuel efficiency of V/Line’s fleet of 

rolling stock. The introduction of bio-fuel is a priority. 

To save energy and water through improving environmental efficiencies 

at V/Line’s offices. 

To develop ongoing sustainability measurement, reporting and 

communication. 

To improve management of reserve biodiversity assets in a manner 

that does not compromise ongoing operation and maintenance 

of rail assets. 

To save energy by improving the environmental efficiency of 

V/Line’s technology. 

To develop a program of consultation to explore regional public transport 

needs among various stakeholders. 

To increase employee health and job satisfaction, 

and career opportunities. 

To support our local communities, local products and services during 

the procurement process. 


SUSTAINABILITY, ENVIRONMENT AND COMMUNITY 36/37

ENVIRONMENTAL N E N ISSUES S S AND INCIDENTS 

I N ISSUES S S INHERITED I E BY V/LINE PRIOR R TO REGIONAL RAIL TAKE-OVER E IN 2007 

0 McLennan Street, Ararat 

In mid-2008, the Environmental Protection Authority (EPA) issued a clean up notice for a rail 

reserve in McLennan Street, Ararat. While the contamination was believed to have been 

caused by previous owners of the site and potentially other parties, as the current lessee, 

V/Line is responsible for the clean up. Assessments were undertaken to determine the toxicity 

of the contaminants throughout the soil in this site, and at year’s end V/Line was working with 

the EPA to determine the best treatment or removal options. Significant clean up costs are 

expected to be incurred in 2009–10, and no determination has been made about whether 

action will be sought to recover these costs from other parties. 

Echuca–Serpentine Rd, Mitiamo 

Following an accident between a freight train and truck on Echuca–Serpentine Road in 2004, 

a number of contaminants, determined to be Category C (acceptable to be transported 

to landfill) were found near the site. These contaminants had come from the contents of 

one of the original freight train’s wagons. In January 2009, after testing had determined 

this substance to be acceptable for landfill disposal without treatment, the material was 

transported to an EPA licensed landfill in Eaglehawk. 

INCIDENTS I N UNDER V/LINE CONTROL 

O Queens Parade, Traralgon 

In October 2008, the EPA issued a pollution abatement notice to V/Line following the detection 

of fuel in a Traralgon creek, which it determined to be sourced from refuelling activities at 

Traralgon Station. In accordance with the notice, V/Line appointed an environmental auditor 

to review refuelling activities at this site, including procedural documentation, and has 

undertaken a risk assessment of the activities. A series of recommendations has been made 

and a preliminary audit report has been submitted to the EPA. V/Line is working to address 

the recommendations made by the auditor. 

Mitiamo Rail Reserve, Mitiamo 

In mid-2007, an independent contractor engaged by V/Line to undertake grading works 

associated with the maintenance of fire breaks on a rail access track allegedly damaged 

between 23 and 38 protected spiny rice-flowers within the Mitiamo Rail Reserve Biosite. 

The Victorian Department of Sustainability and Environment (DSE) brought action against 

V/Line, and the federal Department of Environment, Water, Heritage and the Arts (DEWHA) 

entered into discussions with V/Line. Post this reporting period (July 2009), V/Line voluntarily 

entered into an enforceable undertaking with the federal Minister for the Environment, 

Heritage and the Arts. V/Line has agreed to pay $25,000 to the spiny rice-flower national 

recovery team for research and conservation of the species, and $26,510 will go towards 

monitoring and recovery of the population and proper fencing of the biosite to prevent future 

incursions. V/Line will also devote $136,500 to staff and contractor training to help ensure 

future railway maintenance and upgrade works do not impact on protected species or other 

matters of national environmental significance. As a result of this undertaking, the Victorian 

DSE ceased its action against V/Line. 

Spotswood, Melbourne 

The fuel tank of a V/Line locomotive partially broke away from the vehicle on 11 May 2009, 

leaking diesel on the tracks. The clean-up was managed by Connex as the incident took place 

on their network. 

ENVIRONMENTAL N E N TARGETS 

T 2008–09 represented a major benchmarking year for V/Line as we worked towards 

becoming a more sustainable operation. During the year, monitoring systems were put 

in place across head office, maintenance and station infrastructure to ensure we can 

now fully measure our environmental impact – including energy and water consumption, 

waste generation and fuel consumption. 

Through these measurements, V/Line has set formal benchmarks, which now form the core 

of the V/Line Sustainability Framework. Key objectives and targets include 

OBJECTIVE TARGET OBJECTIVE TARGET 

Improve energy efficiency 

at V/Line-controlled 

operations 

Improve water efficiency 

in all V/Line-controlled 

operations and to reduce 

our impact on water 

resources 

Reduce the ecological 

footprint of V/Line’s 

operations through 

the consideration of 

environmental issues 

in purchasing and 

contractual decisions 

Purchase 15% of energy consumed at V/Line-controlled 

passenger stations and head office from renewable 

sources by June 2010. 

Each corridor to reduce energy consumption by 5% 

per total passengers per corridor by July 2010. 

Head office to reduce energy consumption by 5% 

per full time employee (FTE) by June 2010. 

Reduce water consumption at V/Line-controlled 

passenger stations by 5% per corridor per total 

passengers by June 2011. 

Reduce paper consumption by 20% per FTE by 

June 2011. 

Review cleaning chemicals used at V/Line stations to 

ensure the most eco-friendly products practicable are 

being purchased. 

Reduce the volume of 

waste sent to landfill 

from V/Line controlled 

operations 

Prevent pollution from 

occurring on sites and to 

ensure the responsible 

management of substances 

with the potential to cause 

environmental damage 

Introduce co-mingled recycling facilities to at least 50% 

of V/Line controlled manned passenger stations by 

December 2011. 

Reduce waste to landfill by 5% from head office 

(per FTE) by June 2011. 

Reduce waste to landfill by 10% from stations (corridor 

per total passengers) by June 2011. 

Ensure all works that involve working with asbestos 

containing material will result in no emission of asbestos 

into the environment. 

Zero fuel spills to ground at fuel points by June 2011. 

Stormwater management plans in place for significant 

sites (major stations and fuelling points) by June 2011. 


SUSTAINABILITY, S A I I T ENVIRONMENT N E N AND COMMUNITY M 38/39 

3

V/Line is now training the next generation of leaders and working hard to attract new talent to the business to 

keep pace with our customers’ growing service demands. 

Our staff must also be well-equipped to manage a range of new projects that will see our rail network continue to 

expand in coming years, new technology rolled out, and more services delivered. 

This is why V/Line has partnered with several major TAFEs and universities, including the University of Ballarat, 

Box Hill TAFE, Central Queensland University, RMIT University, and Swinburne University, to give staff specialist skills 

that will continue to improve the service for our customers. 

Rebecca Symington, who started with V/Line in 2005 as a conductor, has progressed her career to become a staff clerk 

and is now a Training and Compliance Officer where she oversees the rigorous training program that the conductor team 

members are required to complete before they start their duties. 

As part of her career development, Rebecca undertook a Certificate IV in Training and Assessment at Melbourne’s RMIT 

University where she learned valuable leadership and training skills that she now passes on to our new recruits. 

Partnering r n with major universities 

i i e s 

to boost o the skills l s of our staff 

f 

Our people 

p e 

CEO Rob Barnett addresses graduates from the 

2009 Diploma in Business course. > 


RMIT Project Manager – Global Business Development, Annmarie Carroll and V/Line Training and Compliance Officer Rebecca Symington. 

section 

40/41 

4

The successful signing of a Heads of Agreement for the 

2009–12 Entreprise Agreement was a win-win for staff and 

customers alike, with wage increases over the next three 

years linked to better service delivery and ultimately funded 

through productivity gains. 

The fact the agreements were achieved without any 

With an average employee age of approximately 45 years, 

V/Line is faced with the challenge of having a significant 

skills and knowledge base potentially retire from its 

business in the coming years. 

V/Line has now put in place a series of clear, achievable 

and diverse career paths designed to provide staff with 

TRAINING I N IMPROVEMENTS M E TO BOOST O PERFORMANCE 

R E 

V/Line’s training programs are central in ensuring all staff 

are well equipped to excel in their roles. These programs 

provide staff with the skills to adapt to innovations and 

encourage diversity and career development within the 

many facets of V/Line’s business. 

TERTIARY T R TRAINING I N PARTNERSHIPS 

R P S 

The majority of V/Line’s training courses are now aligned 

with the Australian Qualification Framework, which ensures 

that they are nationally recognised. 

In addition to existing relationships with Box Hill TAFE, 

Central Queensland University, RMIT University, and 

2007 

0 2008 



0 > 

> 

industrial issues or disruption is a testament to the 

the opportunity to grow their skill-set across the business. 

Staff participation in training has doubled over the past 

Swinburne University, V/Line recently confirmed an 

cooperative approach of the V/Line team; the Department 

Conductors, for example, make up a large portion of the 

four years from a total staff training attendance of 2683 in 

agreement with Ballarat University that now ensures its 

of Transport; the Australian Rail, Tram and Bus Industry 

Union; the Communications, Electrical, Electronic, Energy, 

V/Line team, with the role generally considered to be entry 

level into the railway industry and a platform into many 

2005–06 to 5312 this year. Our employees participated 

in 184 different training courses during 2008–09, with 

internally run Certificates I, II, III and IV in Rail Operations 

and Infrastructure are fully accredited. These partnerships 

V/Line staff promote rail careers at an expo in Melbourne. 

v 

Information, Postal, Plumbing and Allied Services Union 

other areas. During 2008–09 strong career paths were 

446 sessions throughout the year. Programs included 

are fundamental in further developing V/Line’s credibility 

(Electrical Division); and the Association of Professional 

established that can take conductors from their entry into 

V/Line’s Management Development Program, delivered 

as an employer of choice. 

Engineers, Scientists and Managers Australia. 

Collectively, the agreements allow for a greater level of 

flexibility in V/Line’s operational planning, will deliver 

improved productivity – and will ensure continued increases 

in patronage over the coming years can be confidently 

handled. 

BUILDING I V/LINE'S NEXT GENERATION 

E N 

Another achievement during the year was the establishment 

of new career path options and stronger partnerships with 

training organisations to retain talented people at V/Line. 

the V/Line business right through to working as a train 

driver, conductor services manager, or to other positions 

working within the operations area. 

DRIVING I THE FUTURE 

U V/Line introduced an internal driver trainee program during 

the year to provide a new career path with V/Line. The staff 

response to this program was outstanding, with a high 

number of applicants. At year’s end, appointments were 

being made. 

in conjunction with Swinburne University – which saw 

19 managers and supervisors achieve a Diploma in 

Business, a critical qualification for establishing our future 

business leaders. Other programs included the Graduate 

Diploma in Rail Operations – a course delivered by Central 

Queensland University. 

During the year, a range of new training programs were 

established, including a management skills and professional 

development program for many of V/Line’s operational 

team, along with a Diploma of Signals and Communications 

and a track inspection program. 

IMPROVING I OUR PEOPLE P E MANAGEMENT A M E N SYSTEMS 

S S 

With 1382 employees dispersed right across Victoria – 

managing core human resource functions such as leave 

management, recruitment and management of employee 

data provides a number of challenges. As a result of the 

business’s rapid expansion in recent years, V/Line’s Human 

Resources Information System was introduced during the 

year in a bid to address these issues. 

This new system represented a significant change for 

V/Line’s HR-related functions enabling a far greater analysis 

of employee data and movements throughout the business. 

These changes have enabled a strong level of planning for 

our workforce - and has already been put to 

use in the recent recruitment push to attract a new 

generation to the V/Line team. 

At 30 June At 30 June 

2009 2008 

V/LINE SKILL GROUP 

(HEADCOUNT) 

Executive 9 9 

Operations 69 64 

Station staff 247 232 

Conductors 210 208 

Train drivers 328 318 

Authorised officers 6 4 

Infrastructure 

maintenance 159 153 

Signals and 

communications 54 54 

Train controllers 42 41 

Network services 64 69 

Past and present staff members farewell the old Wodonga Station 

in November 2008 before construction of a new station in 2010. > 

Other staff 189 168 

Total 1382 1320 


OUR PEOPLE 42/43

To coin a phrase, V/Line is not an island. We rely on the services of many regional businesses to run our trains, and few 

functions are more vital than cleaning. 

Borg Corporate Property Services first started as our train cleaning contractor at Southern Cross Station in 2004. In 2006 

they were contracted to carry out the cleaning in the south-west, west and eastern regions, entrusted to make our trains 

clean and comfortable for passengers on departure. 

Based in Melbourne, Geelong, Warrnambool, Ballarat, Ararat, Traralgon and Bairnsdale, Borg staff are responsible for 

cleaning all aspects of the train’s interior windows, carpets, entryways, seats, the toilets as well as rubbish removal. 

The V/Line contract with Borg is worth some $2 million and they employ around 34 staff from regional locations 

and 25 staff at Southern Cross Station. 

Because first impressions count, V/Line has recognised the need to work closely with Borg to get the best possible 

outcomes for customers. 

Recent joint project work has resulted in cleaner trains, an increase in customer and staff satisfaction, maintenance 

cost savings as well as procedures to be followed by Borg cleaners across the network. Ongoing meetings and a hands 

on relationship between V/Line staff and Borg have proven to be the key to a higher standard of cleaning and overall 

satisfaction with this business. 

Borg has proven to be a great example of how V/Line has partnered with local business to improve not just our train 

services, but our reputation for clean and comfortable trains in which our customers are happy to travel. 

Partnering r n with regional businesses 

s s e s 

to improve customer services 

e s 

Borg Corporate Property Client Services Manager Craig Reid and V/Line Regional Manager for the South-West and West, Peter Gibson, at Ballarat Station. 


section 

44/454 4

Train punctuality on V/Line’s regional network improved for 

the third year in a row, despite the challenges of extreme 

weather, major track upgrade works and a rapid growth in 

passenger numbers. 

Regional on-time running of our trains provides the best 

gauge of our direct performance because that part of the 

network is solely under V/Line’s control. In 2008–09, 

regional punctuality rose to 95.2 per cent on time for 

all services, compared with 94.5 per cent last year and 

93.5 per cent in 2006–07. 

However, our punctuality in the metropolitan network – 

under the control of Connex – continued to be affected by 

railway congestion, with record numbers of country and 

suburban trains now running in the city area. 

Resolving these metropolitan congestion issues remains 

the key challenge to be addressed by all Victorian rail 

stakeholders, including V/Line. In 2008–09 V/Line 

continued to work with both the Department of Transport 

and metropolitan operator Connex to improve planning, 

timetabling and to manage the Melbourne network’s 

capacity. The recently announced $4.3 billion Regional Rail 

Link project represents a landmark step in alleviating this 

congestion, particularly for passengers on the Geelong, 

Ballarat and Bendigo lines. 

OUR PERFORMANCE 

R E 

While our regional punctuality continues to improve as a result 

of ongoing better and integrated maintenance following 

V/Line’s take over of the network in 2007, our total punctuality 

– including both regional and metropolitan sections of the 

journey – still has not met our target of 92 per cent on time. 

In 2008–09, our short-distance trains were a combined 85.5 

per cent on-time (down slightly from 86 per cent last year), 

while long-distance trains were 87.8 per cent on time (up 

from 86.5 per cent in 2007–08). 

Our claim to be one of the most reliable public transport 

operators in Australia still holds true, with 98.3 per cent of 

all scheduled trains running (98.7 per cent last year). In fact, 

of 63,090 short-distance trains schedule, just 1208 were 

cancelled (61,882 ran, or reliability of 98.1 per cent). 

Our long-distance trains performed even better, with 

99.4 per cent reliable, as just 66 out of 11,304 scheduled 

trains were cancelled (11,238 ran). Of those trains 

considered to be ‘cancelled’, most were replaced with 

road coaches. 

Until new major metropolitan track infrastructure is delivered 

under Regional Rail Link, V/Line is limited in the amount of 

extra train services that can be offered during peak periods. 

Following a 30 per cent increase in services in 2006 and 

minor timetable additions since, train service numbers 

remained on par with last year, with 73,120 trains running 

(just 42 more than 2007–08). 

ON TIME PERFORMANCE OF TRAINS ON THE REGIONAL NETWORK UP TO THE METROPOLITAN BOUNDARIES* 

southern 

cross 

station 

short distance 

long distance 



83% 

85.4% 

85.5% 

87.8% 

85.1% 

81.5% 

91.8% 

88.9% 

> 

2007 


82.3% 

88.7% 

86.5% 

87.6% 

85.1% 

79.5% 

82.6% 

89.7% 

> 

pakenham 

broadmeadows 

watergardens 

sunshine 

werribee 

pakenham 

broadmeadows 



97.0% 

95.0% 

93.9% 

95.0% 

97.0% 

93.6% 

96.5% 

97.0% 

> 

2007 

2008 Seven-carriage VLocities started running on 

some Geelong services to boost capacity. 

92.7% 

97.1% 

94.0% 

94.0% 

95.4% 

92.59 

88.5% 

97.4% 

> 

traralgon 

seymour 

bendigo 

ballarat 

geelong 

bairnsdale 

albury/wodonga † 

shepparton 

v 

southern 

cross 

station 

92.9% 

81.7% 

93.0% 

82.5% 

watergardens 

96.3% 

92.6% 

95.6% 

93.0% 

echuca 

swan hill 

92.8% 

92.5% 

sunshine 

96.2% 

95.6% 

ararat 

89.0% 

88.1% 

werribee 

96.0% 

94.6% 

warrnambool 

Total journey punctuality 

Regional area punctuality 

Shunting in our rail yards at Southern Cross Station. > 

* Regional area punctuality for Melbourne-bound trains is calculated before the train enters the metropolitan system. 

Out-bound train punctuality in the regional area is assessed by deducting its actual variance at the metropolitan boundary 

from its actual variance at its regional destination. 

† 

Train services were replaced with road coaches between Seymour and Albury/Wodonga from November 2008 due to track 

upgrade works. 


OPERATIONS 46/47

More short-distance trains ran this year (61,882 compared 

84.3 per cent on time for February. However, of 11,834 

Corporation, who will take on responsibility for the ongoing 

Geelong supporters have relied on V/Line to get them to the 

Our Geelong line also saw a boost during the year, with 

with 60,510 last year), but only because Albury / Wodonga 

trains terminated at Seymour – thus classifying them as 

‘short’ – due to the North East Rail Revitalisation Project 

(NERRP) track upgrade works. Consequently, this temporary 

reclassification meant that long-distance services dropped 

to 11,238 (versus 12,568 services last year). 

COPING IN THE HEAT 

Over the first two months of 2009 Victoria experienced the 

most extraordinary heatwave in recorded history. In January, 

the state experienced three of the four hottest days ever in 

Victoria, a major power blackout and 22 days of heat-related 

speed restrictions on at least one or more of V/Line’s routes. 

In February, V/Line was also significantly affected by the 

impacts of this heat. 

Black Saturday bushfires on 7 February 2009 caused the 

temporary closure of our Warrnambool, Seymour and 

Gippsland lines. Fire destroyed 3000 sleepers in the 

Camperdown area on the Warrnambool line. About 1200 

sleepers, the Wandong Station platform and two rail bridges 

were also destroyed on the Seymour line. The Gippsland line 

was closed as a precaution for 24 hours due to the proximity 

of the Bunyip State Forest fire but was not damaged. 

These extraordinary circumstances had a significant impact 

on V/Line, with short-distance trips to Geelong, Ballarat, 

Bendigo, Seymour and Traralgon averaging 81.6 per cent 

on time in January, and 83.1 per cent on time February. 

Long-distance trips to Warrnambool, Ararat, Swan Hill and 

scheduled services over these two months, 515 were 

technically ‘cancelled’ although all but 41 were replaced 

by road coaches (and 20 of those couldn’t be replaced as 

roads were cut off by bushfires). This is an excellent outcome 

despite the extreme conditions, and the result of significant 

planning by our operations department. 

SIMULATING I OPERATIONAL O A CHALLENGES 

L E The year also saw the start of work on a new Rail Operations 

Management System (ROMS) – a major project that is 

expected to reap significant rewards for V/Line’s operations 

systems. Through ROMS, we will have the ability to 

undertake simulations of a number of scenarios across our 

network, including the loss of individual carriages and lines, 

staff changes and network failures. The system will then 

help to set in place, to a greater extent than ever before, the 

processes needed to manage these individual scenarios. 

The new system will deliver significant benefits to V/Line 

in the areas of fleet management, timetabling and staff 

management, and implementation will begin in late 2009. 

KEEPING E NORTH-EAST T VICTORIA I MOVING 

November 2008 saw a major change to V/Line’s operations 

in north-east Victoria, with the shut-down of train services 

between Seymour and Albury. The shut-down was a key 

part of the joint federal and Victorian government’s 

$501 million project to upgrade Victoria’s freight corridor 

between Melbourne and Albury-Wodonga. As part of 

the upgrade, 300 kilometres of track between Seymour 

operation of this stretch of line. V/Line will continue to 

operate services on the line when work is complete. 

The works also presented V/Line with a significant 

operational challenge to ensure customers could still travel 

between Seymour and Albury. A temporary timetable was 

introduced in November, which has involved the operation 

of road coaches between Albury-Wodonga and Seymour, 

with trains connecting with coach timetables to allow 

passengers to get between Seymour and Melbourne without 

major disruption. 

DELIVERING E I PASSENGERS S E S TO MAJOR EVENTS 

E Victoria is a state renowned for its major events – and getting 

Victorians to these events is a key part of V/Line’s operation. 

For a short period every two years, V/Line’s team shift the 

focus of their passions from trains to aircraft, as part of the 

Avalon International Airshow. This six-day event attracting 

thousands of visitors from the Asia-Pacific, and V/Line’s role 

is critical to its success. In March 2009, we operated 59 

additional train services for the airshow, with over 18,000 

people travelling with V/Line to and from the event. Other 

key regional events also saw V/Line adding additional 

services to its schedule, including the Hanging Rock and 

Warrnambool race events, and the Castlemaine State Festival. 

When it comes to the AFL, a very simple rule applies: when 

the Geelong Football Club is playing well – V/Line is busy 

on winter weekends. With Geelong following its 2007 AFL 

big games more than ever before. During the 2008 season, 

254,224 passenger trips were made on trains to and from 

AFL games in Melbourne and Geelong (including finals), 

and almost 80,000 passenger trips were made in the first 

10 rounds of the 2009 season alone. 

Extra V/Line services were also put in place for major 

Melbourne-based events this year including Melbourne 

Victory and Melbourne Storm matches, the World Cup 

Soccer qualifier, the AFL’s 2008 Final Series, 2009 NAB Cup 

competition, cricket matches including the Boxing Day Test, 

tri-nations one-day series and 20-20 cricket competitions, 

International Rules Football series, Sound Relief, as well 

as the Andrew Rieu and Victorian bushfire ‘Sound Relief’ 

concerts and World Youth Day celebrations. 

WENDOUREE E E WELCOMED 

E On Sunday 14 June 2009 we opened our 83rd station – 

with the commencement of services to Wendouree, in 

Ballarat’s west. The station is now served by 63 services 

every week and was opened to alleviate pressure on Ballarat 

Station and give residents in a growing residential area of 

Ballarat an alternative transport option. 

Work on the station was undertaken by the Department 

of Transport from mid-2008 – and it now features a 

completely new station building, a 200-space car park, 

bike racks, lockers – and local bus timetables were 

rescheduled to deliver a smooth transition for passengers. 

longer opening hours at some existing stations. North 

Geelong, Marshall and Lara stations were, until recently, 

open only on weekdays, however with additional staff, are 

now also open on weekends. 

MARYBOROUGH R O PASSENGER S E TRAINS TO RETURN 

R Planning started for the return of passenger trains to 

Maryborough Station, which was announced in December 

2008 as part of the government’s Victorian Transport 

Plan. The government has committed $50 million for 

the project, including signalling, station upgrades and 

bus improvements to enable the return of services to 

Maryborough, with a daily return VLocity train via Ballarat. 

When these services commence, they will be the first 

passenger services to the area since 1993. 

The track between Melbourne and Maryborough is currently 

being upgraded as part of the overall upgrade of freightfocussed 

rail services to Mildura, and a $1.8 million heritage 

upgrade completed by VicTrack at Maryborough Station in 

mid-2008. 

V/Line CEO Rob Barnett presents Services Officer 

Kelly Westlake with a traditional station clock at the 

opening of the new Wendouree Station. 

v 

Bairnsdale averaged 78.5 per cent on time for January, and 

and Albury was handed over to the Australian Rail Track 

premiership with outstanding years in 2008 and 2009, 


OPERATIONS 48/49

Together with the Victorian Government, international train manufacturer Bombardier has been a major partner in 

helping us to carry more passengers than ever before. 

The government’s first order for new VLocity trains – capable of running at up to 160 kilometres per hour – 

dates back to 2001, with the first of 38 two-carriage trains taking to the tracks in December 2005. 

All of these trains have been in operation since 2006, but as patronage grew at unprecedented rates, 

Bombardier’s factory in Dandenong was commissioned to expand most into three-carriage trains as well 

as construct more new vehicles. 

Since August 2008, an average of one new carriage per month takes to the tracks – a rate expected to continue 

until at least 2012. By financial year’s end, Bombardier had rolled out 14 of up to 74 more carriages – 

adding more than 1000 extra seats to the fleet. The government also announced in its Victorian Transport Plan 

in December that a further 20 V/Line carriages will be added to the regional fleet, on top of the 54 carriages 

already on order. 

With Bombardier’s factory located in Melbourne’s outer east, these locally made trains are great for local employment. 

V/Line also partners with Bombardier to maintain our fleet of VLocity trains, achieving one of the best reliability rates 

in the industry, with vehicles travelling over 83,000 kilometres between faults. 

Partnering r n with leading manufacturers a u r to create 

e 

local l jobs and more trains for our customers 

s 

Fleet 

e V/Line Fleet Engineer John Baldi and Bombardier Project Manager John Doddrell at the Dandenong factory where our new VLocity carriages are under construction. 

V/LINE ANNUAL REPORT 2008-2009 50/51

Physical seating capacity on V/Line’s trains has grown 

VLOCITIES I EXPAND 

passenger trains in Victoria, with seven-carriage trains 

to H-Set locomotive-hauled carriages and Sprinter trains 

During the year, planning for a new maintenance facility at 

62 per cent since 2005 with the introduction of new VLocity 

trains to regional Victoria. 

However the benefit to passengers is a few times greater, 

with each extra carriage running on four to six services 

per day. 

Prior to 2005, there were 11,062 physical seats available 

on locomotive-hauled and Sprinter carriages. Now, 17,886 

seats are available – 1064 of which were added during 

2008–09 alone as a result of 14 new VLocity carriages 

rolling out. 

This ongoing expansion of the fleet has allowed for 

sustainable patronage growth and means V/Line is 

now Australia’s largest regional train operator. 

During the year, V/Line gained the flexibility to run our 

very popular VLocity trains in the original two-carriage 

configuration, or as a three-carriage vehicle when a new 

middle carriage had been added. This means we can now 

more precisely match train capacity to the passenger 

volumes recorded by our conductors. 

By adding an additional VLocity car to a two-car train, an 

additional 76 seats are added to each service, along with 

room for an additional two wheelchair passengers (total of 

six) and an additional luggage and bicycle storage area. As 

part of the expansion, carriages were also fitted (following 

passenger feedback) with 32 seats in each new carriage now 

including seat trays, along with a number of adjustments to 

seat-back angles throughout the new carriages. 

The ability to run VLocities as a combination of two or threecarriage 

sets saw V/Line start operating the largest regular 

running on four peak Geelong services each weekday from 

November 2008. 

As the fleet grows, our stabling and maintenance facilities 

across the state also expanded. Platforms were also 

lengthened at Marshall, South Geelong, Geelong and 

North Melbourne stations to allow the semi-express 

seven-carriage trains to run safely on the Geelong line. 

In 2009–10, platforms will also be extended at some 

Bendigo and Ballarat line stations where five to six 

carriage trains will operate. 

TRAIN REFURBISHMENTS 

R E S 

While new VLocity trains set new comfort standards, our 

older trains are also being progressively refurbished. 

In addition to our standard maintenance program, 

a $13 million state government program of improvements 

continued during the year. In addition to new interior 

seating covers, carpeting and curtains, the vehicles 

benefitted from new interior and exterior paint colour 

schemes. Key among the exterior changes were 

improvements to the visibility of locomotives, Sprinters 

and VLocities with yellow and white fronts as part of the 

refurbishment or major maintenance cycle. 

As of March 2009, every door on every carriage across the 

entire V/Line fleet is now automatic. This positive milestone 

is the result of an upgrade to our N-set fleet undertaken 

over a number of years. It is now impossible for a door on 

an N-set to be opened without the complete consent of 

the train’s crew, a critical safety feature for all passengers 

travelling with V/Line. 

A DEDICATED D E D STANDARD-GAUGE A D A G FLEET 

E The joint Victorian and federal government-funded 

Dynon, in Melbourne’s inner west, started to allow for the 

long-term upkeep of these three dedicated vehicles. 

IMPROVING I RELIABILITY 

I L I Ensuring V/Line’s entire fleet is on the tracks to meet 

continued strong passenger growth is a complex task. 

Maintenance processes must be strict and rigorous – with 

absolutely no compromises on safety – while ensuring the 

most efficient use of every carriage across Victoria. 

Since their introduction in late 2005, the performance of 

V/Line’s VLocity fleet has been excellent. The kilometres 

travelled between faults improved markedly during 2008–09 

to 83,570 kilometres (up from 75,692 kilometres last year). 

This is an outstanding result in comparison to other rail 

providers who operate similar types of vehicles. Availability 

of these trains, however, dropped slightly from 91.1 per cent 

last year to 88.2 per cent this year, as a result of the need to 

Our train refurbishment program at Newport. 

v 

$501.3 million North-East Rail Revitalisation Project, 

temporarily remove a train from service to allow a new third 



2007 


VLOCITIES 

Rolling stock availability 

(% fleet avail) 

> VLocities 88.2% 91.1% 

Rolling stock reliability 

(3-month mean km 

between faults) 

> VLocities 83,570 75,692 



2007 


SPRINTERS 



> Sprinters 88.1% 88.6% 




> Sprinters 19,884 22.992 



2007 


LOCOMOTIVES 



> Locomotives 82.0% 81.7% 




> Locomotives 23,506 21,866 



2007 


LOCO-HAULED CARRIAGES 



> Loco-hauled carriages 88.1% 88.6% 




> Loco-hauled carriages 93,052 128,359 

which involves the conversion of track to a standard-gauge 

width, will be a major benefit in enabling a better flow of 

passenger and freight rail traffic between Victoria, New 

South Wales and Queensland. 

However, this track conversion requires modification of the 

broad-gauge wheel sets used on trains throughout most of 

Victoria to the standard-gauge model used in NSW on three 

of our N-Set trains. As part of the conversion, 15 carriages, 

carriage to be inserted into the configuration. 

Our older fleet of Sprinters and locomotive-hauled trains still 

provide capacity to our customers, but require more regular 

maintenance due to their age. Sprinters travelled an average 

19,884 kilometres between faults (down from 22,992 

kilometres last year). Locomotive-hauled carriages travelled 

93,052 kilometres between faults – down considerably from 

the 128,359 kilometres per fault in 2007–08, mainly due to 

three locomotives and three power vans will make up 

issues with the modified power doors on N-Set carriages to 

VLOCITIES 

I SPRINTERS 

R S 

LOCOMOTIVES 

O O LOCO-HAULED O L CARRIAGES 

R A the three special N-Set vehicles. In addition to the undercarriage 

work, an interior and exterior refurbishment will 

improve passenger safety. However, locomotive reliability 

improved for the second consecutive year to 23,506 

also improve customer comfort. This fleet will be dedicated 

kilometres between faults (21,866 kilometres last year). 

purely to V/Line’s Melbourne–Albury services, with services 

expected to return to Albury on completion of track and 

signalling upgrades in 2010. 

Maintenance programs will expand throughout 2009 to meet 

the challenges of a growing fleet that continues to travel 

further across regional Victoria. 


FLEET 52/53

Timber sleepers have served the Victorian railway industry well for more than 150 years and still have a major part 

to play across our network. 

However, the durability and stability offered by concrete sleepers, as part of the Regional Fast Rail (RFR) project, have 

helped establish V/Line as a business with modern and reliable infrastructure able to run trains at a speeds of up to 

160 kilometres per hour. 

Starting with the four RFR lines to Ballarat, Geelong, Traralgon and Bendigo, V/Line will progressively replace all 

timber sleepers on passenger lines with concrete. This means our partnering with industries such as Austrak, based in 

Geelong, is imperative to our upgrade and maintenance programs. 

Austrak has been operating since 1980 and employs people from the south-west region. The Geelong factory has 

been operating since 1994, and they produce more than two million sleepers each year for rail and tram industries 

across Australia. 

In 2008–09 more than 50,000 concrete sleepers were laid on the Ballarat line as part of the passenger line renewal 

program. The Geelong line was upgraded with 28,000 concrete sleepers in early 2008 and as a consequence this 

line now consists solely of concrete sleepers between Werribee and Geelong. 

The Traralgon line will see up to 80,000 concrete sleepers laid in 2010 with Bendigo line sleeper replacement works 

expected to start in 2012. 

The vision is to eventually phase out timber sleepers on the regional passenger lines and transfer the reusable ones to 

the lower-use freight rail network. As we continue to partner with industries such as Austrak we continue to grow our 

reputation as a business of the future. 

Partnering r n with industry to 

upgrade and maintain a i n our tracks 


r t u r V/Line’s Major Periodical Maintenance Track and Civil Manager, Jason Arklay, and Austrak’s Product Design Manager, Dr Jason Nairn, at the concrete sleeper manufacturing plant in Lara. 


54/55 

5 5

Safe, effective and efficient infrastructure is the back bone 

One of the largest projects undertaken during the year was 

Most crossings along this line section also underwent major 

UPGRADING G OUR STATIONS 

T S 

INNOVATIONS N I O N IN EXTREME E E CONDITIONS 

I O N A strong example of this approach has been in the 

of our rail operations. Beyond our statutory and regulatory 

obligations, V/Line has an outstanding culture focussed on 

achieving best-practice standards and innovations that are 

designed to improve operational efficiencies and the overall 

customer experience. 

LAYING THE FOUNDATIONS 

O N A targeted, customer-oriented approach to maintenance of 

our track, signalling and other infrastructure is the key to our 

trains becoming more punctual and reliable on the regional 

network under our control since 2007. 

Excluding major projects, 2008–09 saw a record sleeper 

maintenance program across regional Victoria. More than 

173,000 sleepers were laid throughout the state during the 

year – an investment in Victoria’s core rail infrastructure of 

over $32 million, with projects taking place in every part of 

the state. 

the upgrade of track between Sunshine, in Melbourne’s 

western suburbs, and Ballarat. This major works program 

saw V/Line’s team replace more than 50,000 older timber 

sleepers with concrete sleepers. This entire section is now 

concrete, ensuring maintenance will be required less, and 

customers will notice an ongoing improvement in reliability 

along this line. Similar works were undertaken along the 

freight-only line between Murtoa to Hopetoun in the state’s 

west. More than 40,000 timber sleepers were replaced in 

this area where the rail line plays a critical importance in the 

movement of grain and other crops. 

Important stretches between Kerang and Swan Hill, and 

Strathallan and Echuca saw works undertaken to weld 

joins in the track, in addition to the replacement of over 

20,000 sleepers. Works to both of these sections of line 

will see a notable difference to passenger comfort in this 

region – reducing bumps as the train moves along the line. 

maintenance to renew the track and road surfaces. 

Crossing loops were also upgraded across the state. 

Sites in Barwon, Boxbank, Melton and Rockbank were all 

converted from timber sleepers to concrete during 2008–09. 

Additionally, station pits at Ardeer, Deer Park, Melton 

and Rockbank were re-formed with concrete sleepers. 

Nine key bridges throughout Victoria were also strengthened 

– and Bendigo station’s stabling yard was given a 

$300,000 upgrade. 

Additionally, during 2008–09, Department of Transportappointed 

contractor John Holland started work on a 

$60 million upgrade of stretches of freight line between 

Ballarat and Mildura on the V/Line network. This upgrade 

involves replacing sleepers, welding of rail joints and a 

range of other works along this stretch of rail that is vital 

to Victoria’s agricultural industry. 

V/Line also embarked on a significant program of station 

improvements during 2008–09. Station redevelopments 

were undertaken at Lara and Echuca stations, with Lara 

Station seeing a complete rebuild of the station building, 

platform resurfacing and an upgrade of lighting. Works at 

Echuca, in the state’s north, involved a major refurbishment 

of the internal waiting and staffing areas. New larger shelters 

were also installed during the year at Bunyip Station. 

With V/Line’s fleet expanding in length – including regular 

VLocity services with seven-carriages along the Geelong line, 

work has occurred at a number of stations to accommodate 

these extra long trains. Platform extensions were undertaken 

during the year at North Melbourne, Geelong, South Geelong 

and Marshall stations – ensuring as our trains grow in 

length, so does the infrastructure to accommodate them. 

During 2008–09, a major program to install more 

de-watering points at a number of stations throughout the 

V/Line network began. De-watering points allow the removal 

of waste from trains – and until recently, this work was 

only able to be carried out at Melbourne’s Southern Cross 

Station. New points were installed at Ballarat, Bendigo, 

Echuca, Shepparton, Swan Hill and Warrnambool stations, 

with installations soon to be completed at 

Kyneton and Albury. 

2008–09 saw parts of V/Line’s passenger network placed 

under heat speed restrictions for 49 days. This safety policy 

sees trains operated at slower speeds when the forecast for 

the day is forecast to reach 36 degrees or more between 

Melbourne and Bendigo, Ararat, Warrnambool, Bairnsdale, 

Seymour and Shepparton, or 33 degrees or more at Swan 

Hill and Echuca. The policy is implemented in response to 

the potential for steel railway track to bend and buckle in 

extreme heat. 

With planning undertaken in 2007–08, this year saw the 

commencement of a pilot project to potentially reduce the 

need for these restrictions. This involved measuring the 

temperature – and the direct stress it puts on our railway 

lines – at 22 individual sites along the Geelong, Ballarat, 

Bendigo, Swan Hill and Echuca lines. Data from this study 

will be analysed to determine the potential for a shift in heat 

speed restriction policy in the future. 

IMPROVING I THE WAY WE BUILD 

A more streamlined approach to maintenance work since 

V/Line took control of the regional network two years ago has 

created cost savings in the purchase of materials that have 

allowed us to undertake more work with the same budget. 

This better coordinated approach has also resulted in more 

materials V/Line is now using for infrastructure building 

and maintenance. While timber still remains the most 

predominant material used as railway sleepers, V/Line 

has confirmed its push towards the use of concrete for this 

purpose, with almost 30 per cent of all 173,000 sleepers 

laid during 2008–09 being made from concrete. While more 

expensive, concrete sleepers have a notably longer lifespan 

and require less maintenance. A similar shift has been also 

undertaken for the maintenance of bridges across the state, 

with timber being replaced by steel. 

A notably streamlined approach is also taking place with 

V/Line’s innovative approach to its maintenance equipment. 

A number of key pieces of on-track machinery – including 

rail lifters, scarifiers, cranes and loaders – have undergone 

V/Line-designed modifications to suit operation-specific 

needs. Among many modifications; cranes have been 

mounted onto excavators, loaders have been fitted with 

railway fittings – with each modification allowing V/Line to 

work on-track, and then take this machinery off-track within 

30 seconds to allow a train to pass along the railway line. 

This approach provides significant increases in work speeds 

and efficiencies, ensuring new records are being set in 

V/Line’s worksite productivity. 

consistent, safer work practices for our team in the field. 

Thermal welding as part of line restoration works at Wandong 

following the February 2009 bushfires. > 


INFRASTRUCTURE 56/57

Yelta 

Victorian rail network map 

Mildura 

Red Cliffs 

Robinvale 

Hattah 

The opposite approach is also assisting in enhancing 

V/Line’s worksite efficiency. Machinery that is traditionally 

rail-bound has been replaced with machinery that can also 

serve other purposes off the rails, such as drainage and 

rail bank maintenance. This approach has ensured that 

when the laying of sleepers cannot be undertaken due to 

train operations, for example, the V/Line team can still 

work on-site. 

TECHNOLOGICAL O C L INNOVATION 

N I O N 

Key planning was undertaken in 2008–09 for the 

introduction of several technological innovations 

that are expected to make strong improvements to 

V/Line’s operations. 

Laser-based surveying systems will soon be used as part of 

V/Line’s track inspection program – with the planned focus 

on identifying bumps and measuring directional changes in 

portions of V/Line’s track. This work, the planning for which 

has been undertaken throughout 2008–09, will then help to 

form the basis of V/Line’s maintenance program, enabling a 

smoother journey for thousands of passengers each year. 

Planning was also undertaken during the year for the 

introduction of a new hand-held maintenance system 

across V/Line’s maintenance team. Handheld devices will 

be used to enable V/Line’s team to enter upgrade/change 

information as they do this work – making a significant 

reduction to paperwork. This will ensure our team can 

spend more time out in the field undertaking the core 

of their responsibilities, and less time with paperwork 

and administration. 

During the year, V/Line introduced a new Maximo database 

system for managing the maintenance and upgrade of 

assets across Victoria. This new system is central to the 

management of our extensive works schedule by allowing 

better organisation of equipment and materials, allowing the 

better transfer of surplus goods from one part of the state to 

another to reduce project costs. 

The new system is also central to V/Line’s safety 

management system, as it provides an automated process 

for issuing of works orders. For example, if one of the 

hundreds of V/Line-maintained bridges across Victoria 

is soon requiring an inspection, V/Line’s new Maximo 

database system automatically issues works orders to 

ensure this happens. 

Platform extension works at Geelong Station 

to cater for longer trains. 

v 

Adelaide 

Panitya 

Serviceton 

Diapur 

Linga 

Heywood 

Portland 

Yaapeet 

Jeparit 

Dimboola 

Branxholme 

Ouyen 

Mittyack 

Hopetoun 

Horsham 

Woomelang 

Warracknabeal 

Murtoa 

Glenthompson 

Hamilton 

Dennington 

Manangatang 

Sea Lake 

Glenorchy 

Stawell 

Ararat 

Maroona Yard 

Warrnambool 

Nyah West 

Birchip 

St Arnaud 

Tatyoon 

Westmere 

Terang 

Piangil 

Ultima 

Wycheproof 

Korong Vale 

Swan Hill 

Maryborough 

Beaufort 

Berrybank 

Camperdown 

South Kerang 

Ballarat 

Colac 

Moulamein 

Kerang 

Inglewood 

Dunolly 

Moolort 

Clunes 

Inverleigh 

Marong 

Gheringhap 

Pyramid 

Eaglehawk 

Ballan 

Dingee 

Wakool 

Bendigo 

Castlemaine 

Echuca 

Malmsbury 

Kyneton 

Woodend 

Sunbury 

Diggers Rest 

Bacchus Marsh Melton 

Werribee 

Little River 

North 

Geelong 

Winchelsea 

Huntly 

Lara 

Geelong 

Rochester 

Murchison East 

Nagambie 

Seymour 

Deniliquin 

Strathmerton 

Kyabram 

Tallarook 

Broadford 

Wallan 

Craigeburn 

Somerton 

Toolamba 

Mangalore 

Tocumwal Yard 

Dookie 

Shepparton 

Euroa 

Benalla 

Oaklands 

Wangaratta 

Glenrowan 

Wodonga 

Springhurst Bandiana 

Nar Nar Goon 

Longwarry 

Pakenham Warragul Moe Traralgon 

Drouin 

Rosedale 

Trafalgar Morwell 

Albury 

Sale 

Bairnsdale 

Ballarat 

Geelong 

Bendigo 

Sydenham 

St Albans 

Albion 

Broadmeadows 

Tottenham 

Yard Flemington 

Racecourse 

Deer Park 

Ardeer 

Sunshine 

Newmarket 

Brooklyn 

Spotswood 

Newport 

Seaholme 

MELBOURNE METRO AREA 

Craigieburn 

Oak Park 

Strathmore 

Port 

Melbourne 

Jacana 

Glenroy 

North Dynon 

South Dynon 

Jewell 

Southern Cross 

Upfield 

Flinders Street 

Williamstown Pier 

LEGEND 

Fawkner 

Merri 

North 

Melbourne 

Elsternwick 

Brighton Beach 

Sandringham 

Clifton Hill 

Victoria Park 

Richmond 

S. Yarra 

Caulfield 

Epping 

Reservoir 

Glenferrie 

Kooyong 

Darling 

Bentleigh 

Rosanna 

Camberwell 

Alamein 

Cheltenham 

Mount Waverley 

Huntingdale 

Mordiallic 

Hurstbridge 

Blackburn 

Glen Waverley 

Westall Yard 

Stony Point 

Ringwood 

Dandenong 

Bayswater 

Lyndhurst 

Boronia 

Cranbourne 

Lilydale 

Belgrave 

Traralgon 

Passenger and freight services (V/Line broad gauge) 

Passenger and freight services (ARTC standard gauge) 

Freight only (V/Line broad gauge) 

Freight only (V/Line standard gauge) 

ARTC (standard gauge) including dual gauge 

North Geelong – Gheringhap and Geelong grain loop 

Connex Melbourne (broad gauge) 

Note: Map reflects the rail environment at 30 June 2009. 

Victorian Rail Track Corporation (VicTack) 


INFRASTRUCTURE 58/59

Sometimes disruptions to our train service occur due to incidents beyond our control, but our customers judge us on 

the speed of our response and ability to keep them moving – no matter what. 

Unlike the metropolitan train network, V/Line trains travel much greater distances and do not have the same service 

regularity, which is why catching the next train is not an option for many people. 

To ensure that our customers are not left waiting for unreasonable amounts of time, a cancelled train on the V/Line 

network needs to be replaced by a road coach in most instances. Our commercial partnerships with coach companies 

in Melbourne and regional Victoria are pivotal to ensuring customers are provided with an alternative. 

Coach companies are also called upon by V/Line for planned track works or prolonged train disruptions such as 

during the February 2009 bushfires. 

V/Line has a pool of around 30 coach companies across Victoria at our disposal in the event of disruptions, 

and Dysons is a good example of the way V/Line has partnered with a commercial transport provider. 

Dysons has many depots across regional Victoria and runs a large fleet of modern and well-equipped buses and 

coaches which, when necessary, jump into action to keep our customers moving. V/Line’s aim is to get our customers 

to their destinations, and without these commercial partnerships, this could not happen. 

In addition to the train-support role contracts that V/Line manages with coach operators, the Department of Transport 

has contracts with coach companies which provide regular timetabled services to our passengers. This part of the 

business is also important as it accounts for just over eight per cent of our patronage. 

Commercial m partnerships r p s with 

other transport r t providers 

r Dysons Bus Service Managing Director Jamie Dyson and V/Line Coach Manager, Andrew Berry at Sunbury Station. 


section 

60/61 

6

2007 




FINANCIAL SUMMARY: $M $M 

Revenue 

Operational 381.2 328.3 

Non-operational 84.0 83.6 

Expenditure 471.6 420.9 

Loss before income 

tax expenses 6.4 9.0 

Net cash inflow from 

operating activities 21.0 20.9 

Total assets 169.7 173.0 

Total liabilities 108.4 105.3 

Net assets 61.3 67.7 

> 

> 

Record patronage saw our farebox revenue increase 

15 per cent to $68.6 million. This is the second year of 

strong farebox growth, and represents a 39 per cent 

increase on the $49.3 million collected in ticket sales 

back in 2005–06. 

Total income for the V/Line business was up 13 per cent to 

$465.2 million ($411.9 million last year). This included a 

$28.9 million increase in government subsidies to 

$255.6 million (a 12.7 per cent increase from last year’s 

$226.7 million). 

Importantly, the subsidy per passenger trip continued to 

decrease this year to $19.42 as more people travel with 

V/Line. This key efficiency measure has seen the rate drop 

from $19.88 last year and $22.74 in 2006–07. 

Revenue from access charges to other operators remains 

flat – up just $188,000 on last year to $2.7 million. 

The impact of the drought on harvest outcomes means this 

is still down almost $2 million on access fees in 2006–07 

and does not reflect the considerable costs of maintaining 

the freight rail infrastructure. 

However, total expenses also increased with the growing 

business – up 12 per cent to $471.6 million ($420.9 million 

in 2007–08). Major expenses included $58.9 million in 

fleet maintenance ($47.8 million in 2007–08) as our trains 

continue to travel further. With the demands of extreme 

weather, particularly over summer, road coach costs also 

increased to $6.8 million ($4.5 million last year). There was 

only a modest increase in staff: labour costs increased to 

$121.3 million ($107.2 million in 2007–08). 

While fuel remains a major cost to our business 

($24.4 million this year), efficiencies were realised as part 

new commercial arrangements with our supplier which saw 

savings of $626,000 in the first year of the new deal. 

The business reported a consolidated loss before tax for 

the year of $6.4 million. While this is an improvement on the 

$9 million loss (before income tax expense) reported last 

year and $23.4 million loss in 2006–07, it is important to 

note that this is not a cash loss. 

As a not-for-profit entity whose primary obligation is the 

delivery of subsidised passenger transport services to 

regional Victoria, neither V/Line’s Franchise Agreement 

with the Director of Public Transport nor V/Line’s Corporate 

Business Plan is based on the corporation making a profit. 

GREENHOUSE E E CHALLENGE L E PLUS 

Greenhouse Challenge Plus began as a voluntary program 

for companies wanting to boost their green credentials. 

To strengthen the program, the Commonwealth introduced 

a mandatory category of membership for those companies 

claiming more than $3 million in fuel tax credits per annum. 

With a fuel usage of 26.5 million litres and a rebate of 

$0.38143 per litre, membership of the program was worth 

about $7 million per annum for V/Line. 

Following new legislation recently passed by the 

Commonwealth, the Greenhouse Challenge Plus 

program ceased on 30 June 2009 and has not been 

replaced by an alternative scheme. 

ENGAGEMENT G E E N OF CONSULTANTS N T S PAID OVER $100,000 

0 0 0 0 

SUPPLIER/VENDOR DESCRIPTION $'000 

Alphawest Information technology services 2,224 

McCann Erickson Melbourne Marketing advertising services, including outbound growth campaign 1,830 

Worley Parsons Engineering services 955 

Corrs Chambers Westgarth Legal advice 899 

Fujitsu Australia BMS implementation 358 

Oakton Services Information technology services, including BMS implementation 314 

Dimension Data Australia Information technology services 302 

Barrington Centre Critical incident management and employee assistance program 215 

Willis Australia Workcover administration, case management and insurance brokerage 199 

Ernst & Young Taxation and internal audit services 173 

Initiate Action Materials management improvements 155 

Critical Risk Pty Ltd Risk management / security 128 

Battiston Consulting Business management system consulting 92 

Under $100,000 16 consultancies 605 

V/LINE ANNUAL REPORT 2008-2009 FINANCE 62/63

Corporate o r governance 

n e 

BOARD COMPOSITION 

Ms Catherine Scott 

(October 2003 to 30 June 2009) 

Ms Scott is an experienced board 

member and has held senior executive 

positions in the investment banking 

and airline industries. In addition to 

finance expertise she brought to 

V/Line a thorough understanding of 

infrastructure projects and regional 

development. Ms Scott is the deputy 

chairperson of Goulburn Valley Water 

and also serves on the board of 

Goulburn Murray Water. 

Ms Scott was the deputy chair of V/Line 

and did not seek reappointment to VLPC 

when her term expired on 30 June 2009 

and resigned effective 1 July 2009. 

Mr David Worth 

(since December 2008) 

Mr Worth is a chartered accountant and 

an experienced director and adviser 

in the transport and logistics industry 

and the property industry. He has had 

senior executive experience in corporate 

finance, supply chain management, 

property development, corporate 

strategy and IT. He is a director of two 

property investment funds associated 

with Marks Henderson Funds 

Management, several development 

trusts established by Dacland 

Management for Sophisticated 

Investors and Lowell Capital Limited, 

a small resources fund manager. 

Mr Frank Tait 

(since October 2003) 

Mr Tait is the chair of the boards of 

VLPC and V/Line. His career spans 

government as well as the rail transport 

and defence industries. Along with 

his role on the V/Line boards, 

Mr Tait is executive director of the 

Infrastructure Projects Division within 

the Department of Transport. He also 

has a consulting business, advising 

boards, executive management and 

entrepreneurs on business strategy, 

organisational development and 

recruitment strategies. 

Ms Fiona Bennett 

(since December 2008) 

Ms Bennett has held senior executive 

positions in leading listed companies 

and has experience in commercial and 

financial management, governance, risk 

management and audit across a range 

of industries, including retail, resources, 

manufacturing and health. She has held 

a number of government, public and 

not-for profit board positions and is 

currently a director of Alfred Health, 

the Institute of Chartered Accountants 

in Australia, Legal Services Board, 

WPC Group Limited and Heide Museum 

of Modern Art. 

Mr Michael Tilley 

(since July 2006) 

Mr Tilley is the chairman of Terrain 

Capital. He has worked in the accounting 

and finance industries for more than 

25 years and has broad senior advisory 

and project management experience in 

all facets of corporate finance. Mr Tilley 

is also chairman of Lower Murray Water 

Authority and Free Eyre Limited and 

a director of Vision Super Pty Ltd and 

North Queensland Metals Limited. 

V/LINE PASSENGER S E CORPORATION 

O R O AND V/LINE PASSENGER S E PTY LTD 

V/Line Passenger Corporation (VLPC) was established 

on 15 July 2003 as a statutory rail corporation under the 

Rail Corporations Act 1996. On 14 October 2008 VLPC 

was also declared a state business corporation pursuant 

to the State Owned Enterprises Act 1992. VLPC is the sole 

shareholder of the main operating entity, V/Line Passenger 

Pty Limited (V/Line). 

In 2003 V/Line entered into a franchise agreement with 

the Director of Public Transport (Director), representing 

the State Government of Victoria, to operate regional rail 

throughout Victoria. The current franchise agreement will 

expire on 31 December 2009. 

In July 2004, the Director directed V/Line to facilitate the 

operation of heritage rail (i.e. steam) services on behalf 

of identified rail heritage groups. 

In April 2007, the Director directed V/Line to execute 

documents and operate the regional below-rail business, 

following the state’s buy-back of the infrastructure from 

Pacific National, to facilitate track access for the operation of 

both passenger and freight rail services from 7 May 2007. 

Effective from March 2009, V/Line is no longer subject to the 

Deed of Company Arrangement that had been entered into 

by V/Line and its creditors in 2003 following the insolvency 

of the National Express Group of companies. 

BOARD OF DIRECTORS 

R As at 30 June 2009, the boards of VLPC and V/Line consisted 

of the same five non-executive directors, with the board of 

the parent entity, VLPC, reporting to the Minister for Public 

Transport and to the Treasurer. 

Each board has established protocols and procedures to 

ensure that corporate governance is maintained at the 

highest levels and that the strategic direction and overall 

performance of the respective business entities can be 

developed and monitored diligently. The board of V/Line 

has also delegated certain functions to board committees 

which focus on relevant important areas of operations. 

Further details regarding these board committees are 

set out later in this section. 

BOARD MEETINGS E ATTENDANCE 

T A N E 

The boards of VLPC and V/Line generally hold bi-monthly 

meetings and additional meetings as required. 

V/Line Passenger Corporation 

Director No. eligible to attend No. attended 

Mr Frank Tait (Chair) 6 6 

Ms Catherine Scott 6 6 

Mr Michael Tilley 6 5 

Ms Fiona Bennett 4 4 

Mr David Worth 4 4 

V/Line Passenger Pty Ltd 

Director No. eligible to attend No. attended 

Mr Frank Tait (Chair) 6 6 

Ms Catherine Scott 6 6 

Mr Michael Tilley 6 5 

Ms Fiona Bennett 4 4 

Mr David Worth 4 4 

ACCESS C S TO INFORMATION 

I O N 

Directors of VLPC and V/Line are allowed full access 

to information required in order to discharge their 

responsibilities. Directors of both entities may obtain 

independent professional advice on matters arising in the 

course of board duties. The board of VLPC receives written 

reports from the CEO of VLPC at each board meeting on 

compliance by V/Line of its ongoing obligations under 

Ministerial directions. Directors also have access to senior 

managers and/or officers of the entity on whose board they 

serve and, on request, to documents held by the entity. 

INDEMNIFICATION N I I I N OF OFFICERS 

F VLPC and V/Line have entered separately into deeds of 

indemnity and access with each current and former 

director and the corporation/company secretary. 

Prior to its deregistration on 4 February 2008, 

Victorian Rail Heritage Operations Pty Limited (VRHO) 

entered into a deed of indemnity and access with its sole 

director, Mr Rob Barnett. These deeds of VLPC, V/Line 

and VRHO provide for indemnification against liabilities 


CORPORATE GOVERNANCE 64/65

arising from the conduct of the business or from the 

discharge of directors’ and officers’ duties (other than any 

liability relating to a wilful breach of duty or trust) and the 

maintenance of directors’ and officers’ insurance. These 

deeds remain operational in respect of the current directors 

and secretary of VLPC and V/Line, and also the following 

former directors of VLPC and V/Line: Ms Catherine Scott; 

Ms Alice Williams; Ms Meredith Doig; Mr Andrew Neal and 

Mr Colin Nicol, former director of VRHO: Mr Rob Barnett and 

former corporation/company secretaries: Mr Anthony Day 

and Mr David Chapman-Kelly. 

During the financial year, V/Line insured all directors 

and officers of VLPC and V/Line against certain liabilities 

incurred by them in that capacity. In accordance with normal 

commercial practices, the terms of the insurance contract 

prohibit disclosure of details of the nature of the liabilities 

covered by the insurance contract and the amount of the 

premium paid under the contract. 

BOARD COMMITTEES 

M T E The board of V/Line has established three board committees 

– the remuneration; finance, audit and risk; and safety, 

security and environment committees. 

The Remuneration Committee: 

• The function of the committee includes assisting the 

board in the appointment, review and succession of 

the chief executive officer and reviewing remuneration 

policy of staff. 

• Members as at 30 June 2009: Catherine Scott (Chair) 

and Frank Tait. 

• Number of meetings held during the year: two. 

The Finance, Audit and Risk Committee: 

• The function of the committee is to assist the board to 

oversee the financial and commercial risk management 

framework, including to review and monitor accounting 

policies and practices, and to evaluate and develop 

financial and commercial risk management systems. 

• Members as at 30 June 2009: Michael Tilley (Chair), 

Catherine Scott and Fiona Bennett. 

• Nunmber of meetings held during the year: four. 

The Safety, Security and Environment Committee: 

• The function of the committee is to assist the board in 

discharging its obligations in relation to V/Line’s health, 

safety, security and environment practices, and providing 

an overview mechanism for examining the management 

of operational risk management in V/Line. 

• Members as at 30 June 2009: David Worth (Chair), 

Fiona Bennett and Frank Tait 

• Number of meetings held during the year: four. 

CORPORATE O R PLAN 

In accordance with the Rail Corporations Act, VLPC prepared 

its corporate plan, including its statement of corporate 

intent. The corporate plan is prepared annually and covers a 

three-year period starting from the current financial year. 

MINISTERIAL I I DIRECTIONS 

I VLPC received no ministerial directions for the period 

ending 30 June 2009. 

FREEDOM E OF INFORMATION 

I O N 

VLPC is subject to the provisions of the Freedom of 

Information Act 1982. For the year ended 30 June 2009, 

VLPC received four requests for access to information. Of 

these requests, three were from a Member of Parliament 

and one was from a member of the public. 

BUILDING I ACT 1993 

9 It is V/Line’s policy to ensure that new buildings and works 

to existing buildings carried out for and on its behalf comply 

with the Building Act 1993. 

NATIONAL N A COMPETITION T I O POLICY 

VLPC continues to comply with the requirements of the 

National Competition Policy, including compliance with the 

requirements of the Victoran Competitive Neutrality Policy, 

as applicable. 

WHISTLEBLOWERS L W E S PROTECTION T O ACT 

VLPC and V/Line are subject to the provisions of the 

Whistleblowers Protection Act 2001. In the past year, one 

disclosure has been received and referred to the Victorian 

Ombudsman. It is currently undergoing investigation. 

IMPLEMENTATION M E T I N OF THE VICTORIAN I INDUSTRY 

PARTICIPATION I P A T I POLICY (VIPP) 

P VLPC and V/Line have not entered into any contracts for the 

year ended 30 June 2009 to which VIPP thresholds applied. 

VLPC’s and V/Line’s standard tendering procedures include 

compliance with VIPP as and when required. 

RISK MANAGEMENT 

A M E N A process is in place for V/Line and VLPC to meet their 

obligations under the Victorian Managed Insurance Authority 

Act 1996. The risk management processes in place are 

consistent with the AS/NZS 4360 standard. The board of 

V/Line, as the significant operating entity, considers risk 

management issues regularly as part of its bi-monthly 

board meetings, through the activities of both the Safety, 

Security and Environment Committee and the Finance, Audit 

and Risk Committee, as well as through a robust process 

known as the Enterprise Wide Risk Management System. 

V/Line also has in place other policies and management 

systems to ensure that operational and compliance 

matters are efficiently and effectively addressed. V/Line 

has a Management System Manual which provides a 

comprehensive overview of these policies and management 

systems, including the Enterprise Wide Risk Management 

System, legislative compliance policies, an environment 

management system, and an audit framework for safety, 

security and environmental matters. 

VICTORIAN I GOVERNMENT E N RISK MANAGEMENT 

A M E N FRAMEWORK R ATTESTATION 

T T A T I, Frank Tait certify that V/Line Passenger Corporation 

through its wholly owned subsidiary and operating 

company, V/Line Passenger Pty Ltd, has risk management 

processes in place consistent with the Australian / New 

Zealand Risk Management Standard AS/NZS 4360 and 

an internal control system is in place that enables the 

executive to understand, manage and satisfactorily control 

risk exposures. The board verifies that this assurance and 

the risk profiles of V/Line Passenger Corporation and 

V/Line Passenger Pty Ltd have been critically reviewed 

within the last 12 months. 

Frank Tait 

Chairman 

26 August 2009 


CORPORATE GOVERNANCE 66/67

1 2 3 4 5 6 7 8 9 10 

Left to right: 

1. Geoff Arthur 

General Manager, Operations 

Delivery, planning and 

development of our train and 

coach services. 

2. Wayne Walsh 

General Manager, 

Network Services 

Provision of access for projects 

and works for freight and 

passenger train operators. 

3. Laurie Foley 

General Manager, Safety, 

Security & Environment 

Incident management and 

safe-working, security, risk and 

safety improvement programs, 

OH&S, DDA and environment. 

4. Rebecca Northeast 

Company (Corporation) 

Secretary 

Legal services, company / 

corporation administration. 

5. Ursula McGinnes 


Stakeholder Relations 

Customer relations, marketing 

and business development, 

communications and media, 

and community relations. 

6. Rob Barnett 


Executive team leader, 

management representative on 

the V/Line Board, and member 

of the government’s Victorian 

Railway Steering Committee on 

Level Crossings. 

7. Jenny Kelman 


Human Resources 

Recruitment, training and HR 

services. Industrial relations and 

organisational development. 

8. Ross Pedley 


Corporate and Finance 

Corporate and financial 

management services, including 

IT, contracts and procurement. 

9. Graham Perry 

General Manager, Engineering 

Rolling stock engineering 

services, including maintenance 

of the current fleet and 

development of new trains. 

10. Mike Sutcliffe 



Maintenance and upgrade 

of rail, signalling and other 

infrastructure. 

Statutory statement 70 

Operating statement 70 

Balance sheet 71 

Statement of changes 

in equity 72 

Cash flow statement 72 

Notes to the 

Financial Statements 73 

Audit report 92 

Disclosure index 97 


0 2 0 0 68/69

Statutory Statement 

We certify that the attached financial statements for V/Line Passenger Corporation and 

its subsidiary have been prepared in accordance with Standing Direction 4.2 of the 

Financial Management Act 1994, applicable financial reporting directions, Australian 

Accounting Standards and other mandatory professional reporting requirements. 

We further state that, in our opinion, the information set out in the Operating Statement, 

Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 

Financial Statements presents fairly the financial transactions during the year ended 

30 June 2009 and the financial position of the consolidated entity at this date. 

We are not aware of any circumstance which would render any particulars included 

in the financial statements to be misleading or inaccurate. 

The Accountable Officer and the Chief Financial Accounting Officer have, within the 

last 12 months, made formal statements to the board that: 

• the Corporation’s financial reports present fairly, in all material respects, the 

Corporation’s financial condition and operational results in accordance with the 

requirements of the Financial Management Act 1994 including the Directions; 

• the financial report is founded on a sound system of risk management and internal 

compliance and control which implements the policies adopted by the Board; 

• the Corporation’s risk management and internal compliance and control system is 

operating efficiently and effectively in all material respects. 

Frank Tait, Chairman 

Michael D Tilley, Director 

OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 

Notes 2009 2008 

$’000 $’000 

INCOME 

Revenue 2(a) 381,289 328,326 

Other income 2(b) 83,965 83,573 

Total income 465,254 411,899 

EXPENSES 

Operational expenses 3 (a) 250,069 218,729 

Depreciation 3 (b) 18,961 20,391 

Administrative expenses 56,673 49,969 

Selling expenses 2,188 2,258 

Marketing and communication 3,684 3,905 

Customer service expenses 3,434 2,652 

Project expenses 20,694 15,957 

Infrastructure maintenance 82,624 77,818 

Trains provided free of charge 1 (f) 33,349 29,225 

Total expenses 471,676 420,904 

Loss before income tax expense (6,422) (9,005) 

Income tax expense 4 – (6,290) 

Net loss for the period 13 (6,422) (15,295) 

The above Operating Statement should be read in conjunction with the accompanying notes. 

BALANCE SHEET AS AT 30 JUNE 2009 


$’000 $’000 

ASSETS 

Current assets 

Cash and cash equivalents 5 2,785 2,664 

Receivables 6 24,354 21,378 

Inventories 7 4,772 5,296 

Other current assets 8 684 330 

Total current assets 32,595 29,668 

Non-current assets 

Investments 1(l), 9 – – 

Property, plant and equipment 10 137,073 143,302 

Total non-current assets 137,073 143,302 

Total assets 169,668 172,970 

LIABILITIES 

Current liabilities 

Payables 1(o),11 55,718 58,544 

Provisions 1(x),12 48,933 44,503 

Total current liabilities 104,651 103,047 

Non-current liabilities 

Provisions 1(x),12 3,726 2,210 

Total non-current liabilities 3,726 2,210 

Total liabilities 108,377 105,257 

Net assets 61,291 67,713 


$’000 $’000 

EQUITY 

Asset revaluation reserve 13 104,913 104,913 

Accumulated surplus/(losses) 13 (43,622) (37,200) 

Total equity 61,291 67,713 

Commitments for expenditure 23 25,879 11,564 

Contingent assets and liabilities 22 – – 

The above Balance Sheet should be read in conjunction with the accompanying notes. 

Rob Barnett, Chief Executive Officer 

Melbourne, 12 August 2009 

Ross Pedley, General Manager 

– Corporate & Finance 

V/LINE ANNUAL REPORT 2008-2009 FINANCIAL STATEMENTS 70/71

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2009 CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 

NOTES TO THE FINANCIAL STATEMENTS 


$’000 $’000 

TOTAL EQUITY AT THE BEGINNING OF THE FINANCIAL YEAR 67,713 97,683 

Net loss for the period (6,422) (15,295) 

Revaluation decrement to rolling stock – (14,675) 

Total equity at the end of the financial year 61,291 67,713 

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes. 


$’000 $’000 

CASH FLOWS FROM OPERATING ACTIVITIES 

Receipts from government (GST inclusive) 377,128 340,691 

Receipts from other entities (GST inclusive) 101,815 77,313 

Payments to suppliers and employees (GST inclusive) (448,823) (389,742) 

GST payments to the Australian Taxation Office (9,453) (7,933) 

Interest received 307 557 

Net cash flows from operating activities 26 20,974 20,886 

CASH FLOWS FROM INVESTING ACTIVITIES 

Payment for plant and equipment (20,853) (19,081) 

Net cash flows used in investing activities (20,853) (19,081) 

Net increase/(decrease) in cash and cash equivalents 121 1,805 

CASH AND CASH EQUIVALENTS AT THE 

BEGINNING OF THE FINANCIAL YEAR 2,664 859 

Cash and cash equivalents at the end 

of the financial year 5 2,785 2,664 

The above Cash Flow Statement should be read in conjunction with the accompanying notes. 

Note 1 

Note 2 

Note 3 

Note 4 

Note 5 

Note 6 

Note 7 

Note 8 

Note 9 

Note 10 

Note 11 

Note 12 

Note 13 

Note 14 

Note 15 

Note 16 

Note 17 

Note 18 

Note 19 

Note 20 

Note 21 

Note 22 

Note 23 

Note 24 

Note 25 

Note 26 

Summary of significant accounting policies 

Income 

Operational expenses 

Income tax expense 

Cash and cash equivalents 

Receivables 

Inventories 

Other current assets 

Investments 

Property, plant and equipment 

Payables 

Provisions 

Equity 

Financial instruments 

Controlled entities 

Ministers and accountable officers 

Remuneration of executives 

Remuneration of directors and accountable officer 

Remuneration of auditors 

Directors disclosures 

Related party disclosures 

Contingent assets and liabilities 

Operating leases and expenditure commitments 

Employee benefits and superannuation commitments 

Subsequent events 

Cash flow statement 

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

(a) Basis of accounting 

This is a general purpose financial report, which has been prepared in accordance with the 

requirements of the Financial Management Act 1994 and Accounting Standards, including 

Australian accounting interpretations and authoritative pronouncements of the Australian 

Accounting Standards Board. 

The Corporation is in compliance with the requirements of Australian Accounting Standards 

as issued by the AASB and International Financial Reporting Standards as issued by the 

IASB. V/Line has applied the AIFRS to all Financial Reports and appropriate notes contained 

in these statements. 

V/Line Passenger Corporation is a Victorian Statutory Corporation established in Australia 

under the Rail Corporations Act 1996. 

The financial report has been prepared on an accruals basis and is based on historical cost, 

except for the revaluation of certain non-current assets and financial instruments. Cost is 

based on the fair values of the consideration given in exchange for assets. Accounting policies 

applied are consistent between current and prior year. 

The financial statements were authorised for issue by the board on 12 August 2009. 

(b) Principles of consolidation of controlled entities 

The financial report comprises the consolidated financial statements of V/Line Passenger 

Corporation and its subsidiary. The effects of all transactions between entities in the 

consolidated entity are eliminated in full. 

Where control of an entity is obtained during a financial year, its results are included in the 

consolidated operating statement from the date on which control commences. Where control 

of an entity ceases during a financial year its results are included for that part of the year during 

which control exists. 

Note 27 

Economic dependency 

Note 28 

Dividends 




V/Line Passenger Corporation is represented by: 

Investment in subsidiary $1 

Contributed equity $1 

The corporation has no other assets or liabilities. 

Given the immaterial nature of the investment by the parent entity it has not been 

reported separately. 

The controlled entities consolidated within the V/Line Passenger Corporation group are: 

Country of Equity 2009 2008 

Name incorporation interest $’000 $’000 

V/Line Passenger Pty Ltd Australia 100% – – 

On 1 October 2003, the corporation purchased one ordinary share in V/Line Passenger Pty Ltd. 

This represents 100% of the company’s issued capital. V/Line Passenger Pty. Ltd. forms part of 

the consolidated entity. 

(c) Not for profit 

The Board is of the view that the consolidated entity qualifies as a not-for-profit entity since 

the primary obligation of the corporation is the delivery of subsidised public transportation 

services to regional Victoria. The entity has signed a Franchise Agreement with the Director 

of Public Transport which determines the services that the corporation provides and the 

payments received for those services. As such the entity’s funding is based on achieving a 

small loss before interest, depreciation and tax and neither the mission nor corporate strategy 

of the corporation reflect achieving profit. The entity has been deemed to have a not-for-profit 

status and accordingly complies with accounting standards set for not for profit entities 

including AIFRS requirements. 

The entity is a not for profit entity for Federal Income Tax purposes and is therefore exempt from 

income tax. 

(d) Going concern 

Notwithstanding the deficiency in net current assets of $72.1 million (2008: $73.4 million) 

this financial report has been prepared on a going concern basis. The consolidated entity 

is subsidised by its ultimate parent entity, the State Government of Victoria, pursuant to 

a Franchise Agreement with the Director of Public Transport. 

The funding requirements for the year ended 30 June 2010 have been agreed by the Director 

of Public Transport under an approved budget allocation pursuant to the Franchise Agreement. 

The Franchise Agreement contains provisions for the funding requirements to be met by the 

State Government of Victoria throughout the franchise period. The directors expect that a new 

Franchise Agreement will be executed before the end of 2009 and that this new agreement will 

extend the franchise period out until 2017. 

The Director of Public Transport acknowledges and agrees that, for the benefit of the directors 

of the consolidated entity and without limiting the level of financial support, the Director of 

Public Transport has agreed to provide the consolidated entity funding to a level sufficient for 

it to comply with the solvency requirements under the Corporations Act 2001. 

The Director of Public Transport has also agreed that, while the consolidated entity is under 

state ownership, the Department of Transport will meet all of the consolidated entity’s 

employee entitlements as and when those amounts fall due in the event the consolidated 

entity is not able to meet these financial obligations. 

The financial report does not include any adjustments relating to the recoverability and 

classification of recorded asset amounts, nor to the amounts and classification of liabilities 

that might be necessary should the consolidated entity not continue as a going concern. 

Refer to note 27 for further details of the consolidated entity’s economic dependency 

on the State Government of Victoria. 

(e) Comparatives 

When the presentation or classification of items in the financial report is amended, 

comparative amounts have been reclassified unless the reclassification is impractical. 

(f) Revenue 

Revenue is recognised and measured at the fair value of the consideration received or 

receivable to the extent it is probable that the economic benefits will flow to the corporation 

and the revenue can be reliably measured. 

VALUE IN KIND 

Use of VLocity, Diesel Multiple Unit Trains are leased or owned by Rolling Stock Holdings Pty Ltd 

and received free of charge (’Value in Kind’;’VIK’). The VIK measurement is based on the value 

of the lease payments or the notional lease value based on the capital cost per unit of rolling 

stock purchased outright. 

CONTRIBUTIONS 

Government provides subsidies that are recognised as revenue when they are controlled 

by the corporation, which is generally upon receipt of the subsidy. 

TICKET SALES 

Fare box revenue (ticket sales) is recognised on an accrual basis. Sales of tickets that relate 

to passenger trips to be taken after the reporting date are not recognised as income but as 

a liability. 

(g) Cash 

Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and 

highly liquid investments with an original maturity of three months or less, which are readily 

convertible to known amounts of cash and are subject to insignificant risk of changes in value. 

(h) Trade and other receivables 

Trade receivables representing passenger, inter-operator and other revenues receivable are 

carried at nominal amounts due less any allowance for uncollectible amounts. A provision for 

impairment is recognised when collection of the full amount is no longer probable (> 90 days). 

For trade receivables, normal terms are 30 days and 7 days for agency accounts. 

(i) Related party receivables 

Receivables from related parties are recognised and carried at fair value. There is no interest 

charged on related party receivables. 

(j) Inventories 

V/Line has a supplier arrangement with EDI Rail Pty Ltd for the supply of spare parts. These 

spares are available on a “just in time” basis. This practice is considered by industry to be 

best practice as it has the lowest storage costs. V/Line has a contract for these spares to 

be available upon request. These items are valued at cost on a first in first out basis. 

(k) Revaluations of non-current assets 

Rolling stock is measured at fair value and all other non-current assets are measured at cost. 

Revaluations are made with sufficient regularity to ensure that the carrying amount of each 

asset does not differ materially from its fair value at the reporting date. 

Revaluations are assessed annually and supplemented by independent assessments every 

three or four years. Revaluations are conducted in accordance with the Victorian Government 

Policy – FRD 6A Application of Victorian Government Policy ‘Revaluation of Non-Current 

Physical Assets’. 

(l) Investment in Subsidiaries 

Investments in subsidiaries are carried at cost. 

(m) Cost and valuation of property, plant and equipment 

i Valuation of rolling stock and rotables 

V/Line Passenger Pty. Ltd undertook an independent revaluation of its rolling stock as at 31 March 

2008. The 2008 valuation was performed by rolling stock specialists and reviewed by a qualified 

valuer. Although valuation of assets is typically based on the net recoverable amount, the 

corporation has used depreciable replacement cost as a valuation basis. This valuation is in 

keeping with FRD 6A, which states the net recoverable test does not apply to a not-for-profit 

entity since there is no dependence on its assets abilities to generate cash inflows. 

Any revaluation increment or decrement is brought to account in the asset revaluation reserve, 

except to the extent that it reverses a revaluation decrease of the same asset previously 

recognised in profit or loss, in which case the increase is recognised in profit or loss. 




Any revaluation decrease is recognised in profit or loss, except to the extent that it offsets a 

previous revaluation increase for the same asset, in which case the decrease is debited directly 

to the asset revaluation reserve to the extent the credit balance existing in the revaluation 

reserve for that asset. 

Revaluation increases and revaluation decreases relating to individual assets within an 

asset class are offset against one another within that asset class but are not offset in respect 

of assets in different classes. 

ii Depreciation of property, plant and equipment 

Depreciation is provided on a straight-line basis on all plant and equipment, including rolling 

stock and buildings. Rolling stock comprises locomotives, carriages, diesel multiple units 

(known as Sprinters) and vans. Any refurbishments or conversions are depreciated over the 

remaining useful life of the refurbishment. 

iii.Estimated useful lives of property, plant and equipment are set out below: 

Leasehold improvements 

Plant and equipment 

Rolling stock 

3 to 10 years 

3 to 10 years 

4 to 17 years 

The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted 

if appropriate, at each financial year end. 

iv.Leasehold improvements 

The cost of improvements to leasehold properties is amortised over the unexpired period of 

the lease or the estimated useful life of the improvement, whichever is the shorter. Leasehold 

improvements held at the reporting date are being amortised over 3 to 10 years (2008 – 3 to 

10 years). 

v.Leased non-current assets 

Leases of property, plant and equipment are classified as finance leases whenever the terms 

of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other 

leases are classified as operating leases. 

(n) Leases 

i.Finance leases 

Leases of property, plant and equipment are classified as finance leases whenever the terms 

of the lease transfer substantially all the risks and rewards of ownership to the lessee. All 

other leases are classified as operating leases. The entity does not have any finance leases. 

ii.Operating leases 

Operating lease payments are recognised as an expense in the operating statement on a 

straight-line basis over the lease term, except where another systematic basis is more 

representative of the time pattern of the benefits derived from the use of the leased asset. 

iii.Lease incentives 

Incentives received on entering into operating leases are recognised as liabilities. The incentive 

of the lease is amortised over the remaining life of the lease. 

(o) Trade and other payables 

i.Payables consist predominantly of creditors and other sundry liabilities. 

Payables are carried at amortised cost and represent liabilities for goods and services provided 

proir to the end of the financial year which remain unpaid. These amounts are brought to 

account when the obligation to make future payments in respect of the purchase of the goods 

and services arises. 

ii.Related party payables 

Payables to related parties are carried at amortised cost. No interest is charged by the lender. 

(p) Repairs and maintenance 

Repairs and maintenance work on rolling stock are scheduled in accordance with V/Line’s 

rolling stock management plan and the rail safety management standards. Scheduled 

maintenance examinations on rolling stock are determined at set intervals depending on 

the type of rolling stock. 

The refurbishment program included in the rolling stock management plan includes major 

examinations and overhauls of rolling stock. The consolidated entity treats these examinations 

as significant upgrades, which extend the useful life of the rolling stock. Included in the 

refurbishment program is the replacement of major units such as traction and locomotive 

motors, generators, wheel sets and bogies. These items are capitalised and amortised over 

their useful life. 

All other maintenance examinations and minor work are treated as repairs and maintenance 

and expensed when incurred. 

(q) Goods and Services Tax 

Revenues, expenses, assets and liabilities are recognised net of the amount of associated 

GST unless the GST incurred is not recoverable from the taxation authority, in which case 

it is recognised as part of the cost of acquisition of the asset or as part of the expense. 

Receivables and payables are stated inclusive of the amount of GST receivable or payable. 

The net amount of GST recoverable from, or payable to, the taxation authority is included 

with other receivables or payables in the balance sheet. 

Cash flows are presented on a gross basis. The GST components of cash flows arising 

from investing or financing activities which are recoverable from, or payable to the taxation 

authority, are presented as operating cash flows. 

(r) National Tax Equivalent Regime (NTER) 

By direction of the Treasurer of Victoria, under the State Owned Enterprise Act 1992, the 

consolidated entity entered into the NTER on 1 October 2003. Any NTER expense payable is 

calculated on operating profit or loss adjusted for permanent and timing differences between 

NTER income and accounting income. 

Deferred tax is accounted for using the balance sheet liability method in respect of temporary 

differences arising between the tax bases of assets and liabilities and their carrying amounts in 

the financial statements. No deferred income tax will be recognised from the initial recognition 

of an asset or liability, excluding a business combination, where there is no effect on 

accounting or taxable profit or loss. 

Deferred tax is calculated at the tax rates that are expected to apply to the period when the 

asset is realised or liability is settled. Deferred tax is credited in the operating statement except 

where it relates to items that may be credited directly to equity, in which case the deferred tax 

is adjusted directly against equity. 

Deferred income tax assets are recognised to the extent that it is probable that future tax 

profits will be available against which deductible temporary differences can be utilised. 

The amount of benefits brought to account or which may be realised in the future is based 

on the assumption that no adverse change will occur in income taxation legislation and the 

anticipation that the economic entity will derive sufficient future assessable income to enable 

the benefit to be realised and comply with the conditions of deductibility imposed by the law. 

V/Line and its wholly owned Australian subsidiary have formed an income tax consolidated 

group under the Tax Consolidation Regime. Each entity in the group recognises its own current 

and deferred tax liabilities, except for any deferred tax liabilities resulting from unused tax 

losses and tax credits which are immediately assumed by the parent entity. The current tax 

liability of each group is then subsequently assumed by the parent entity. The group notified 

the ATO that it had formed an income tax consolidated group to apply from 1 October 2003. 

The tax consolidated group has entered a tax sharing agreement whereby each corporation 

in the group contributes to the income tax payable in proportion to their contribution to profit 

before tax. 

(s) Employee benefits 

Provision is made for employee benefits accumulated as a result of employees rendering 

services up to the reporting date. These benefits include annual leave and long service leave. 

Liabilities arising in respect of wages and salaries, annual leave, sick leave and any other 

employee benefits expected to be settled within 12 months of the reporting date are measured 

at their nominal amounts based on remuneration rates which are expected to be paid when 

the liability is settled, including related on-costs. 




All other employee benefit liabilities are measured at the present value of the estimated 

future cash outflows to be made in respect of services provided by employees up to the 

reporting date. 

In determining the present value of future cash outflows, the interest rates relating to 

government guaranteed securities are used, which have terms to maturity approximating 

the terms of the related liability. 

The determination of the current portion of employee benefits is based upon benefits which 

are expected to be settled within 12 months of the reporting date and are measured at their 

nominal values. 

Employee benefit expenses arising in respect of salaries and wages, annual leave, long service 

leave, sick leave, other leave benefits and other employee benefits are charged against the 

Operating Statement. 

The contributions made to superannuation funds by the consolidated entity are charged 

against the Operating Statement when due. 

(t) Rounding of amounts 

The corporation is of a kind referred to in Class Order 98/100, issued by the Australian 

Securities and Investments commission, relating to the ‘rounding off’ of amounts in the 

financial report. Amounts in the financial report have been rounded off in accordance with 

that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar. 

(u) Functional and presentation currency 

The functional currency of the consolidated entity is the Australian dollar, which has been 

identified as the presentation currency for the consolidated entity. 

(v) Impairment of assets 

At each reporting date, the group reviews the carrying values of its assets to determine whether 

there is any indication that those assets have been impaired. If such an indication exists, the 

recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and 

depreciated replacement cost, is compared to the asset’s carrying value. Any excess of the 

asset’s carrying value over its recoverable amount is expensed to the Operating Statement, 

except to the extent the write-down is to be brought to account in the asset revaluation reserve. 

(w) Provisions 

Provisions are recognised when there is a present obligation, the future sacrifice of economic 

benefits is probable, and the amount of the provision can be reliably measured. 

The amount recognised as a provision is the best estimate of the consideration required to 

settle the present obligation at reporting date, taking into account the risks and uncertainties 

surrounding the obligation. Where a provision is measured using the cash flows estimated to 

settle the present obligation, its carrying amount is the present value of those cash flows using 

market yields at the reporting date on national government bonds with terms to maturity that 

match, as close as possible, the estimated future cash flows. 

(x) Significant accounting estimates and judgments 

Management evaluates estimates and judgments incorporated into the financial report based 

on historical knowledge and best available current information. Estimates assume a 

reasonable expectation of future events and are based on current trends and economic data, 

obtained both externally and within the group. 

i. Key estimates — Impairment 

The group assesses impairment at each reporting date by evaluating conditions specific 

to the group that may lead to impairment of assets. Where an impairment trigger exists, the 

recoverable amount of the asset is determined. Depreciated replacement cost calculations 

performed in assessing recoverable amounts incorporate a number of key estimates. 

ii.Key judgments — Allowance for impairment loss on trade receivables 

There has been a $80,072 decrease to the provision in 2009 based on a detailed analysis 

of the recoverability of individual accounts. 

iii. Key judgments — Timing of employment provisions 

All employment provisions are classified according to whether the entity has an unconditional 

right to defer settlement beyond 12 months. 

iv. Key judgments — Useful lives of property, plant & equipment 

Property, plant & equipment useful lives are reviewed on an annual basis to ensure their 

contribution is realistically based on their useful economic life. 

(y) New accounting standards and interpretations 

Certain new accounting standards and interpretations have been published that are not mandatory 

for the reporting period ending 30 June 2009. As at 30 June 2009, the following standards and 

interpretations had been issued but were not mandatory for the financial year ending 30 June 2009. 

V/Line has not, and does not intend to adopt these standards early. 

Standard/Interpretation Summary Applicable for annual 

reporting periods beginning 

or ending on 

Impact on financial 

statements 

AASB 8 Operating Segments Supersedes AASB 114 Segment Reporting Beginning 1 Jan 2009 Not applicable 

AASB 2007-3 Amendments to Australian Accounting Standards 

arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, 

AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 and 

AASB 1038] 

AASB 123 Borrowing Costs 

AASB 2007-6 Amendments to Australian Accounting Standards 

arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, 

AASB 116, AASB 138 and Interpretations 1 & 12] 

AASB 2008-3 Amendments to Australian Accounting Standards 

arising from AASB 3 & AASB 127 [AASB 1, 2, 4, 7, 101, 107, 

112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 

138 & 139 and Interpretations 9 & 107] 

An accompanying amending standard also introduced 

consequential amendments into other standards 

Option to expense borrowing costs related to a qualifying 

asset has been removed. Entities are now required to 

capitalise borrowing costs relevant to qualifying assets 

An accompanying amending standard also introduced 

consequential amendments into other standards 

This standard gives effect to consequential changes arising 

from revised AASB 3 and amended AASB 127. The preface 

to those standards summarise the main requirements of 

those standards 

Beginning 1 Jan 2009 



Beginning 1 Jul 2009 

Impact expected to 

be insignificant 

Not applicable 





continued next page 




Standard/Interpretation Summary Applicable for annual 

reporting periods beginning 

or ending on 

AASB 2008-5 Amendments to Australian Accounting Standards 

arising from the Annual Improvements project [AASB 5, 7, 101, 

102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 

131, 132, 134, 136, 138, 139, 140, 141, 1023 & 1038] 

AASB 2008-6 Further Amendments to Australian Accounting 

Standards arising from the Annual Improvements project 

[AASB 1 & AASB 5] 

AASB 2008-7 Amendments to Australian Accounting Standards – 

Cost of an Investment in a Subsidiary, Jointly Controlled Entity or 

Associate [AASB 1, AASB 118, AASB 121, AASB 127 & AASB 136] 

AASB 2008-8 Amendments to Australian Accounting Standards – 

Eligible hedged Items [AASB 139] 

AASB 2008-9 Amendments to AASB 1049 for Consistency with 

AASB 101 

A suite of amendments to existing standards following issuance 

of IASB standard improvements to IFRSs in May 2008. Some 

amendments result in accounting changes for presentation, 

recognition and measurement purposes 

The amendment requires all the assets and liabilities of a for 

sale subsidiary to be classified as held for sale and clarify the 

disclosures required when a subsidiary is part of a disposal 

group that meets the definition of a discontinued operation 

Changes mainly relate to treatment of dividends from subsidiaries 

of controlled entities 

The amendments to AASB 139 clarify how the principles that 

determine whether a hedged risk or portion of cash flows is 

eligible for designation as a hedged item should be applied 

in particular situations 

Amendments to AASB 1049 for consistency with AASB 101 

(September 2007) version 






Impact on financial 

statements 

Impact is being evaluated 




Not applicable to public 

sector entities except for 

certain presentation formats 


$’000 $’000 

NOTE 2 INCOME 

(a) Revenue 

Fare box revenue 68,648 59,641 

Inter-operator income 1,086 787 

Franchise subsidy 234,000 218,703 

State subsidy 21,600 8,000 

Access charges 2,708 2,520 

Other income 19,898 9,450 

Trains received free of charge 33,349 29,225 

381,289 328,326 

(b) Other income 

Interest – other persons/corporation 307 557 

Government project reimbursement revenue 83,215 75,768 

Capital transfer reallocation (554) 7,248 

Other Income 997 – 

83,965 83,573 

Total income 465,254 411,899 

NOTE 3 (A) OPERATIONAL EXPENSES 


$’000 $’000 

Franchise performance penalty 3,242 4,922 

Other direct costs 15,981 10,927 

Fleet maintenance 58,866 47,820 

Fuel costs 24,398 25,024 

Road coach services 6,760 4,539 

Access charges 17,062 15,845 

Repairs & maintenance 2,469 2,470 

128,778 111,547 

Direct labour costs 

Salaries and wages 100,779 87,191 

Superannuation 8,948 8,402 

Annual leave/long service leave expense 5,945 3,670 

Other on-costs (fringe benefits tax, payroll tax and work cover levy) 5,619 7,919 

121,291 107,182 

Total operational expenses 250,069 218,729 





$’000 $’000 


$’000 $’000 


$’000 $’000 


$’000 $’000 

NOTE 3 (B) DEPRECIATION OF NON-CURRENT ASSETS 

Depreciation of non-current assets 

Plant and equipment 3,728 1,677 

Leasehold improvements 348 287 

Rolling stock 12,520 12,384 

Rolling stock – capitalised improvements 2,365 6,043 

18,961 20,391 

NOTE 4 (A) INCOME TAX EXPENSE 

The components of tax expense comprise: 

Current tax – – 

The prima facie tax on profit from ordinary activities before 

income tax is as follows: 

Prima facie tax payable on profit from ordinary activities 

before income tax at 30% (2008: 30%) (1,927) (2,702) 

Tax effect of permanent differences and tax losses 

not brought to account 1,927 2,702 

Write off deferred tax asset arising from the revaluation 

decrement to rolling stock – 6,290 

– 6,290 

The deferred tax asset arising from the revaluation decrement has been written off 

as an expense because it is not probable that it will be realised. 

NOTE 4 (B) DEFERRED TAX ASSETS 

Gross deferred tax assets – temporary differences 

Accruals 211 399 

Provision for employee entitlements 15,376 13,604 

Other provisions 913 952 

Aggregate 16,500 14,955 

Carried forward tax losses 27,945 25,170 

Deferred tax assets 44,445 40,125 

Deferred tax liabilities 

Accelerated depreciation for taxation purposes 35,786 33,387 

Other 48 51 

Aggregate deferred tax liabilities 35,834 33,438 

Deferred tax assets not recognised 8,611 6,687 

The company has substantial prior year tax losses which began, and continue to accumulate 

since, the year ended 30 June 2004. The aggregate carried forward loss and deferred tax assets 

due to timing differences is $44.445m. This offsets the deferred tax liability of $35.834m. As 

such, the deferred tax assets have not been brought to account in the financial statements. 

NOTE 5 CASH AND CASH EQUIVALENTS 

Cash at bank 2,708 2,560 

Cash on hand 77 104 

2,785 2,664 

NOTE 6 RECEIVABLES 

Trade receivables 22,377 20,037 

Less: provision for impairment (73) (153) 

22,304 19,884 

Fuel rebate receivables 1,634 818 

Other receivables 416 676 

24,354 21,378 

Related party receivables 

Trade receivables include the following receivables 

from related parties: 

Department of Transport 18,673 17,174 

Other related parties 15 502 

18,688 17,676 

Terms and conditions relating to the above financial instruments: 

Credit Sales are on 30 day terms. Details of the terms and conditions of related parties’ receivables 

are set out in Note 21. 

NOTE 7 INVENTORIES 

Spares and materials at cost 4,772 5,296 

NOTE 8 OTHER CURRENT ASSETS 

Prepayments 684 330 

NOTE 9 INVESTMENTS 

V/Line Passenger Corporation does not own any investments with the exception of controlled 

ownership of V/Line Passenger Pty Ltd as detailed in Note 1(b). 

NOTE 10 PROPERTY, PLANT AND EQUIPMENT 


At cost 32,643 27,529 

Accumulated depreciation (24,068) (20,349) 

8,575 7,180 

Rolling stock 

At independent valuation – 31 March 2008 114,116 114,116 

Accumulated depreciation (15,665) (3,146) 

Impairment – – 

98,451 110,970 


At cost 5,095 3,851 

Accumulated amortisation (1,449) (1,101) 

3,646 2,750 

Rolling stock – capitalised improvements 

Cost 16,355 3,527 

Rotables 906 928 

Accumulated depreciation (2,518) (153) 

14,743 4,302 

Capital works in progress 11,658 18,100 

Total property, plant and equipment 137,073 143,302 




NOTE 10 PROPERTY, PLANT AND EQUIPMENT CONTINUED 

Valuation of rolling stock 

An independent valuation of all rolling stock was conducted by rolling stock specialists 

with an effective date of 31 March 2008. 

As the market for the rolling stock lacks sufficient depth due to the specialised nature of the 

assets and the small population and volume traded, other indirect methods have been used. 

The depreciated replacement cost method has been used as the primary method of valuation 

and has provided a fair value for the V/Line Passenger Pty Ltd rolling stock fleet as at 31 March 

2008 of $114.1 million. 

Movement in carrying amounts 

The movement in the carrying amounts for each class of property, 

plant and equipment between the beginning and the end of the 

year is as follows: 


$’000 $’000 


Carrying amount at beginning of year 7,180 7,856 

Additions 5,116 1,001 

Disposals (2) – 

Depreciation expense (3,719) (1,677) 

Carrying amount at end of year 8,575 7,180 

Rolling stock at valuation 


Additions – – 


Disposals – – 


Revaluation transfer from rolling stock at cost – 

capitalised improvements – 25,395 

Revaluation decrement – (20,965) 



$’000 $’000 



Additions 1,244 262 

Depreciation expense (348) (287) 


Rolling stock at cost – capitalised improvements 


Additions 12,806 13,899 

Disposals – – 


Revaluation transfer to rolling stock at valuation – (25,395) 


Capital works in progress 


Additions 7,743 10,976 

Transfers to fixed assets (5,870) (6,233) 

Reversals from fixed assets 

(project expenses capitalised by VicTrack) (8,315) – 


Total property, plant and equipment 


Additions 26,909 26,138 

Disposals (2) – 


Transfers to fixed assets (5,870) (6,233) 

Reversal from fixed assets 

(project expenses capitalised by VicTrack) (8,315) – 


Rolling Stock revaluation net decrement – (20,965) 



$’000 $’000 

NOTE 11 PAYABLES 

Trade payables 32,887 25,275 

Accruals 15,281 26,036 

Deferred income 932 638 

Other payables 6,618 6,595 

Total payables 55,718 58,544 

Amounts payable to related parties are as follows: 

Other related parties 2,601 3,040 

2,601 3,040 

NOTE 12 PROVISIONS 

Current provisions 

Employee benefits 47,528 43,136 

Other provisions (employee related) 1,405 1,367 

48,933 44,503 

Movement in other provisions: 

Opening balance 1,367 1,394 

Additional provisions raised during the year 53 – 

Amounts used (15) (27) 

Closing balance 1,405 1,367 

Non-current provisions 

Employee benefits 3,726 2,210 

NOTE 13 EQUITY 


$’000 $’000 

Asset revaluation reserve 104,913 119,588 

Revaluation decrement (net of tax effect of $6,290) – (14,675) 

104,913 104,913 

Accumulated Losses 

Balance at the beginning of the year (37,200) (21,905) 

Net profit/(loss) (6,422) (15,295) 

Balance at the end of the year (43,622) (37,200) 

NOTE 14 FINANCIAL INSTRUMENTS 

(a) Financial risk management 

The corporation’s financial instruments consist mainly of deposits with banks, local money 

market instruments, short-term investments, accounts receivable and payable, loans to and 

from subsidiaries, bills and leases. The main purpose of non-derivative financial instruments 

is to raise finance for group operations. 

The group does not have any derivative instruments at 30 June 2009. 

i.Treasury risk management 

A finance committee consisting of senior executives of the group meet on a regular basis to 

consider currency and interest rate exposure and to evaluate treasury management strategies in 

the context of the most recent economic conditions and forecasts. 

ii.Financial Risks 

The main risks the corporation is exposed to through its financial instruments are interest rate 

risk, liquidity risk and credit risk. 




NOTE 14 FINANCIAL INSTRUMENTS CONTINUED 

INTEREST RATE RISK 

At 30 June 2009 the corporation had no debt. 

FOREIGN CURRENCY RISK 

The corporation is not exposed to fluctuations in foreign currencies. 

LIQUIDITY RISK 

The corporation manages liquidity risk by monitoring forecast cash flows and ensuring 

that adequate funding is maintained. 

CREDIT RISK 

The maximum exposure to credit risk, excluding the value of any collateral or other 

security, at balance date to recognised financial assets, is the carrying amount, net 

of any provisions for impairment of those assets, as disclosed in the balance sheet 

and notes to the financial statements. 

The economic entity does not have any material credit risk exposure to any single receivable 

or group of receivables under financial instruments entered into by the economic entity with 

the exception of the Department of Transport for $18.7 million. 

PRICE RISK 

The corporation is not exposed to any material commodity price risk. 

(b) Net fair values 

The carrying amounts of financial assets and liabilities approximate their fair values. 

The aggregate net fair values of financial assets and liabilities are equal to their carrying 

amount. 


$’000 $’000 

Financial assets 

Cash and cash equivalents 2,785 2,664 

Trade and other receivables 24,354 21,378 

27,139 24,042 

Financial Liabilities 

Trade and other payables (55,718) (58,544) 

Net financial assets (28,579) (34,502) 

(c) Credit risk exposures 

The corporation’s maximum exposures to credit risk at balance date in relation to each class 

of recognised financial asset is the carrying amount of those assets as indicated in the balance 

sheet. 

The main exposure to credit risk arises as it operates in the public transport field and 

relies on the credit worthiness of the State Government of Victoria. 

Other credit risk in trade receivables is managed in the following way: 

– enforcing disclosed payment terms 

– debt collection policies and procedures 

The maximum credit risk exposure does not take into account the value of any collateral 

or other security held in the event other entities/parties fail to perform their obligations 

under the financial instruments in question. 

(d) Market risk 

The corporation’s exposure to market risk sensitivities at balance date is not considered 

to be material. 

NOTE 15 CONTROLLED ENTITIES 

V/Line Corporation did not purchase any other entities during the year. In 2004, V/Line 

Corporation purchased 100% of the shares of V/Line Passenger Pty. Ltd for $1. 

The following entities are 100% controlled by V/Line Passenger Corporation as 

at 30 June 2009: 

V/Line Passenger Pty. Limited. 

NOTE 16 MINISTERS AND ACCOUNTABLE OFFICERS 

In accordance with the Ministerial Directions issued by the Minister for Finance under the 

Financial Management Act 1994, the following disclosures are made regarding responsible 

persons for the reporting period. 

The names of persons who were responsible persons at any time during the financial 

year were: 

Responsible Minister: 

The Honourable Lynne Kosky MP, Minister for Public Transport. 

Directors of the Board: 

Mr Frank A. Tait 

Ms Catherine L. Scott (Resigned 30th June 2009) 

Mr Michael D. Tilley 

Ms Fiona Bennett (Appointed 1st December 2008) 

Mr David Worth (Appointed 1st December 2008) 

Remuneration 2009 2008 

Accountable Officer $360,000–$369,999 $330,000 – 339,999 

NOTE 17 REMUNERATION OF EXECUTIVES 

Executive Officers (other than the Accountable Officer) remuneration during the reporting period 

is shown in the table below. Base remuneration is exclusive of bonus payments, long-service 

leave payments, redundancy payments, retirement benefits and fringe benefits tax. 

Total Remuneration 

Base remuneration 

2009 2008 2009 2008 

$100,000 – $109,999 1 – 1 – 

$110,000 – $119,999 – – – – 

$120,000 – $129,999 – – – – 

$130,000 – $139,999 – – – – 

$140,000 – $149,999 – – – – 

$150,000 – $159,999 – – 2 1 

$160,000 – $169,999 – – 1 – 

$170,000 – $179,999 2 – – 2 

$180,000 – $189,999 1 – 1 3 

$190,000 – $199,999 – 1 2 – 

$200,000 – $209,999 – – 1 – 

$210,000 – $219,999 1 2 – 2 

$220,000 – $229,999 2 3 1 – 

$230,000 – $239,999 1 – – – 

$240,000 – $249,999 1 1 – – 

$250,000 – $259,999 – 1 – – 

Total numbers 9 8 9 8 

Total amount 1,792,484 1,809,880 1,611,072 1,505,649 





$’000 $’000 

NOTE 18 REMUNERATION OF DIRECTORS 

AND ACCOUNTABLE OFFICER 

Income paid or payable, or otherwise made available, 

in respect of the financial year, to all Directors and the 

Accountable Officer, directly or indirectly, from the 

entity or any related party. 

520 512 

The number of Directors and the Accountable Officer 

whose income (including superannuation contribution) 

falls within the following bands: 

$10,000 – $19,999 2 – 

$20,000 – $29,999 2 4 

$30,000 – $39,999 – – 

$40,000 – $49,999 – – 

$50,000 – $59,999 – – 

$60,000 – $69,999 1 1 

$330,000 – $339,999 – 1 

$340,000 – $349,999 – – 

$350,000 – $359,999 – – 

$360,000 – $369,999 1 – 

6 6 

NOTE 19 REMUNERATION OF AUDITORS 

Amounts received or due and receivable by the auditors: 


$’000 $’000 

– audit of the financial statements 82 78 

– other services – – 

82 78 

NOTE 20 DIRECTORS DISCLOSURES 

The directors of the parent entity during the year ending 30 June 2009 were: 

Frank A. Tait (Appointed 1 October 2003) 

Catherine L. Scott (Appointed 1 October 2003 – Resigned 30th June 2009) 

Michael D. Tilley (Appointed 1 July 2006) 

Fiona Bennett (Appointed 1st December 2008) 

David Worth (Appointed 1st December 2008) 

All directors are directors of V/Line Passenger Pty Ltd which forms part of the consolidated entity. 

NOTE 21 RELATED PARTY DISCLOSURES 

Related 

party 

Nature of 

transaction 

Payments to related parties 

Metlink 

Victoria 

Pty Ltd 

VicTrack 

Access 

Southern 

Cross 

Station 

Authority 

Department 

of Transport 

Transport 

Ticketing 

Authority 

Provision of services 

for V/Line customers 

to access suburban 

network 

Provision of 

communication 

services 

Rental 

payments 

Miscellaneous 

payments made 

under the Franchise 

Agreement 

Reimbursement of 

accounts receivable 

staff salary and wages 

Receipts from related parties 

Department 

of Transport 

VicTrack 

Access 

VicTrack 

Access 

Provides funding 

to the corporation 

Management fee 

for rent collection 

Network access 

charges 

Terms and 

conditions 

The entity was 

charged services 

on a cost basis 

only 

Normal 

commercial terms 

and conditions 

Normal commercial 

terms and 

conditions 

In accordance 

with the Franchise 

Agreement 

In accordance 

with agreement 

between the 

parties 

In accordance 

with the Franchise 

Agreement 

In accordance 


In accordance 



$’000 


$’000 

3,160,733 2,196,000 

10,820,985 8,852,152 

1,116,336 874,887 

3,241,608 4,922,211 

80,169 – 

255,600,000 226,703,236 

– 62,949 

NOTE 22 CONTINGENT ASSETS AND LIABILITIES 

Prior to 30 June 2009 there had been a number of incidents involving rolling stock and either 

motor vehicles or trucks at level crossings throughout Victoria. As a result of these incidents, 

damage has been sustained to rolling stock that has or will necessitate repairs as well as other 

operational costs incurred from the incidents in question. V/Line is pursuing the owners and/or 

operators of the vehicles in question from these incidents (either in person or through their 

insurers) for the costs of the repairs and other expenses incurred. The amount of contingent 

assets in relation to these incidents is uncertain. In addition, there may be contingent liabilities 

in relation to these incidents. 

On 28 May 2008 the EPA issued V/Line a Clean Up Notice in relation to contamination on 

railway land in Ararat that is adjacent to a former gasworks site. A Clean Up Plan is currently 

being developed for the site which will determine the remediation strategy that is required. 

If full remediation is required to be undertaken, costs of up to $1 million may be incurred. 

V/Line acknowledges that there are potential contingent liabilities relating to this incident. 

While V/Line as the occupier of the land is managing the remediation, the contamination is 

pre-existing so V/Line will be pursuing reimbursement for these expenses from relevant third 

parties. As such, there is a potential contingent asset for close to the same amount. 

On 18 November 2008 the EPA issued V/Line a Pollution Abatement Notice in relation to an 

oily sheen in Traralgon Creek. The source of the material was traced back to a storm water drain 

discharging from railway land. The EPA determined that activities on the site are likely to cause 

pollution and issued the notice. V/Line is exploring whether there is a defect and whether there 

is a warranty claim against the manufacturer. The more extensive works required by the 

pollution abatement notice may reveal pre-existing contamination. If remediation works are 

required, V/Line will pursue relevant third parties for recoveries or up front expenses. V/Line 

acknowledges contingent liabilities with respect to any environmental costs relating to this 

incident but, at the same time, there is a potential for contingent assets arising out of warranty 

claims or claims against pre-existing contamination. 

474,338 – 

The parent company did not have any related party transactions within the 

wholly-owned group. 




NOTE 23 OPERATING LEASES AND EXPENDITURE COMMITMENTS 

Operating lease commitments 

Operating lease commitments primarily relate to commercial lease agreements in relation to 

tenancy at 570 Bourke Street, and 628 Bourke Street, Melbourne. The leases expire in 2014 

and 2015 respectively which include fixed rate increases of between 3% and 5% or market rent 

reviews at dates specified in the agreements. 

Commitments for minimum contractual payments in relation to non-cancellable operating 

leases are payable as follows: 


$’000 $’000 

Within one year 4,523 2,967 

Later than one year but not later than 5 years 12,919 9,151 

Later than 5 years 1,059 2,774 

18,501 14,892 

Expenditure commitments 

Expenditure commitments primarily relate to station access charges. 

Commitments in relation to operating expenditure are shown below: 


$’000 $’000 

Within one year 25,573 10,312 

Later than one year but not later than 5 years 306 1,252 

Later than 5 years – – 

25,879 11,564 

NOTE 24 EMPLOYEE BENEFITS AND SUPERANNUATION COMMITMENTS 

(a) Employee benefits 

The aggregate employee benefit liability is comprised of: 


$’000 $’000 

Accrued wages, salaries and on-costs 4,060 4,460 

Short term provisions (current) 48,933 44,503 

Long term provisions (non-current) 3,726 2,210 

56,719 51,173 

(b) Superannuation 

Prior to the original Franchise Agreement, the majority of the consolidated entity’s staff 

were members of government superannuation funds. 

The state-organised funds include the Revised Scheme, New Scheme and the Transport 

Superannuation Fund, which are all defined benefits schemes. These schemes are ‘master 

funds’ comprising a large number of participating members, therefore, are not controlled 

by the consolidated entity. 

With effect from 29 August 1999, employees were given the opportunity to remain in the 

government superannuation funds or to change to a private superannuation fund. The private 

funds joined by employees of the consolidated entity since 29 August 1999 are VicSuper or 

Superannuation Trust of Australia. These funds are both accumulation funds. 

The consolidated entity has not recognised any unfunded superannuation liabilities as the 

State Government has guaranteed to undertake this liability from the commencement of the 

original franchise in 1999. Any unfunded liabilities that may arise subsequent to the new 

franchise are calculated annually by the Government Superannuation Office and paid by V/Line 

at the end of the financial year. 

(c) Superannuation schemes contributions and liabilities 

NOTE 25 SUBSEQUENT EVENTS 

There are no events subsequent to balance date. 

NOTE 26 CASH FLOW STATEMENT 


$’000 $’000 

A) RECONCILIATION OF OPERATING PROFIT/(LOSS) 

AFTER TAX TO NET CASH FLOWS FROM OPERATIONS 

Operating profit/(loss) after tax (6,422) (15,295) 

Non-cash flows in profit /(loss) 

Depreciation 18,961 20,391 

Assets capitalised by VicTrack 8,315 – 

Tax expense – 6,290 

Change in operating assets and liabilities 

(Increase)/decrease in trade and other receivables (2,976) (8,874) 

(Increase)/decrease in inventories 524 (811) 

(Increase)/decrease in prepayments (354) 47 

(Decrease)/increase in trade and other payables (3,019) 21,037 

(Decrease)/increase in employee benefits 5,945 (1,899) 

Net cash from /(used in) operating activities 20,974 20,886 

(b) Reconciliation of cash 

Cash balance comprises: 

– Cash at bank 2,708 2,560 

– Cash on hand 77 104 

2,785 2,664 

NOTE 27 ECONOMIC DEPENDENCY. 

The consolidated entity provides public transport services to rural and regional Victoria and 

is also responsible for the management and maintenance of the rail network. The provision 

of these services is subsidised by the State Government of Victoria. Without the provision 

of that subsidy the consolidated entity could not continue as a going concern. The subsidy 

requirements for the year ending 30 June 2010 have been approved by the state. The 

consolidated entity’s three year business plan has also been approved by the Director of 

Public Transport pursuant to the Franchise Agreement. 

NOTE 28 DIVIDENDS 

No dividends were paid, declared or recommended during the year, or subsequent to the 

year end. 

Contribution 

for the year 


Contribution 

for the year 


Contribution 

outstanding 

at year end 


Contribution 

outstanding 

at year end 


Total Superannuation Contributions 10,388 9,311 – – 


INDEPENDENT AUDITOR’S REPORT 

ENERGY EFFICIENCIES OPPORTUNITIES PROGRAM – PUBLIC REPORT 

SECOND PUBLIC REPORT 

CONTROLLING CORPORATION 

V/Line Passenger Pty Ltd 

PERIOD TO WHICH THIS REPORT RELATES 

Start 1 July 2008 End 30 June 2009 

PART 1 – INFORMATION ON ASSESSMENTS COMPLETED TO DATE 

TABLE 1.1 – Description of the way in which the Corporate Group (or part of it) has carried out its assessments 

An assessment of energy use for the above rail division of the business was undertaken between March and June 2008. A cross-functional business improvement project team was formed to 

analyse the data and identify opportunities to improve V/Line’s energy efficiency. The assessment looked at data for 2005–06 and 2006–07, with energy use increasing across these two years 

because of an increase in the number of services being run. A number of potential opportunities were identified and evaluated with the outcome of the assessment documented in an information 

paper that was reviewed and noted by the board. 

According to V/Line’s original Assessment and Reporting Schedule, an assessment of the Regional Network and Access (RNA) division of the business was supposed to be undertaken during 

2008–09. A decision has been made to defer this assessment for one year. Control of the RNA division of the business was passed to V/Line in May 2007 when the state government bought back 

the lease of the intrastate regional rail network from Pacific National. If the assessment had been undertaken as scheduled, only one full year’s worth of data would have been available. As the data 

collection process takes time to refine, it was decided that it would be more beneficial to undertake the assessment for RNA during 2009–10. 

V/Line’s fleet of trains are all diesel powered. While most energy sources are increasing in price, the cost of diesel actually fell during the year. It is expected that the price will eventually rise again 

as oil supply begins to diminish. V/Line’s energy use continues to increase as more capacity is added to meet surging patronage growth. V/Line’s diesel use in 2008–09 was slightly higher than in 

2007–08 despite not running the long-distance services to Albury for a significant portion of the year due to the conversion of that track to standard gauge. Despite the increase in total energy use, 

V/Line’s performance per passenger kilometre continues to improve. Although the specific benefit has not been quantified, as more people switch from cars to the train, the energy efficiency of the 

transport system as a whole improves. 

TABLE 1.2 – Energy use assessed 

Group member and/or business unit and/or key activity and/ 

or site that has had an assessment completed by the end of 

this reporting period 

V/Line Passenger 

Period over which assessment was undertaken 1 

March – June 2008 

Energy use per annum in GJ 2 in the current reporting year 

1,064,240 

Total energy assessed 

Total energy use of the group in the current reporting year 

Total energy assessed expressed as a percentage of total current energy use 

1. This should be the start and finish date (month and year) for the assessment (planned assessment dates were nominated in Table 3.1 of the approved ARS). 

2. Energy Bandwidth may only be used if approved in the Assessment and Reporting Schedule. 

1,064,240 

1,126,190 

94.5% 

V/LINE ANNUAL REPORT 2008-2009 ENERGY EFFICIENCEIES OPPORTUNITIES PROGRAM REPORT 92/93



PART 1 – INFORMATION ON ASSESSMENTS COMPLETED TO DATE (CONTINUED) 

TABLE 1.3 – Accuracy of energy use data 

Entity % achieved Reasons for not achieving data accuracy to within ±5% 

V/Line Passenger ± 5% 

PART 2 - ENERGY EFFICIENCY OPPORTUNITIES THAT HAVE BEEN IDENTIFIED AND EVALUATED 

Part 2A - New assessments completed during the reporting period 

No new assessments were undertaken during the current reporting period. 

Part 2B - Update of assessments originally reported in previous reporting periods 

Name of group member or business unit or key activity or site: 

V/Line Passenger 

Energy use of the entity during the current reporting period 1,064,240 GJ 

TABLE 2.3 - Opportunities assessed to an accuracy of ±30% or better 

Status of opportunities identified Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy 

savings per annum (GJ) 

0 – < 2 years 2 – ≤ 4 years > 4 years 

Outcomes of assessment Total identified 2 0.3 1770 1770.3 

Business response Under investigation 1 1770 1770 

To be implemented 

Implementation commenced 1 0.3 0.3 

Implemented 

Not to be implemented 

Opportunity 2 

A review was undertaken of the pool of V/Line road vehicles. The light motor vehicle fleet consists of several different types of sedans and station wagons as well as Toyota Hilux 2WD and 4WD 

utility vehicles. Research was undertaken to determine the greenhouse gas emissions of vehicles in our current fleet and those of alternative vehicles which would also meet the requirement of 

the business. The research determined that the Toyota Hilux 2WD and 4WD had the lowest emissions when compared with other vehicles in their respective classes. The research also determined 

that the Toyota Aurion had greenhouse gas emissions that were on average 10 per cent lower than other sedans in the fleet and 12 per cent lower than station wagons in the fleet. A reduction in 

greenhouse gas emissions would therefore be achieved if the company standardised on the Toyota Aurion when replacing existing sedans or acquiring new sedans. There will be a corresponding 

reduction in energy use estimated to be five per cent of total road vehicle energy use. A revised Motor Vehicle Policy incorporating these changes has been approved by the board. The change in 

vehicles will occur as leases expire on older vehicles. 

PART 3 - VOLUNTARY CONTEXTUAL INFORMATION 

Table 3.1 – Contextual Information 

V/Line operates an ageing fleet of diesel-powered rolling stock. The average age of the V/Line fleet is about 25 years, although excluding the newest vehicles from that analysis pushes the average 

up to about 35 years. The capacity to make significant improvements in fuel efficiency is therefore limited. V/Line is currently taking delivery of additional new motorised carriages however these will 

be used to provide additional capacity rather than allowing older vehicles to be retired. 

Although V/Line’s gross energy use has increased over recent years, this has been due to an increase in the number of services provided. The increase in service provision, among other factors, has 

encouraged a large increase in patronage meaning that V/Line’s energy indicators have moved in a positive direction. While the specific benefit has not been quantified, as more people switch from 

cars to the train, the energy efficiency of the transport system as a whole improves. 

While V/Line is somewhat limited in the efficiency improvements it can make because of the age of the rolling stock and the long life of the assets, we recognise that we need to improve performance 

where possible. To that end we are currently seeking funding to undertake a limited trial of a biodiesel blend in a small number of our newer vehicles. While this will not improve energy efficiency, it 

will improve performance in terms of greenhouse gas emissions. 

Part 2C - Details of significant opportunities found through EEO assessments 

TABLE 2.5 – Description of significant opportunities 

Opportunity 1 

A review was undertaken of lighting at the West Melbourne depot. The review found that energy could be saved in two ways. The first improvement was through the refurbishment of light fittings. 

This involved among other things the replacement of fluorescent tubes with more efficient types and the installation of high performance reflectors. The second improvement identified was through 

the installation of voltage reduction units for fluorescent lights. These units would reduce the voltage of the lights when full power is not required (i.e. after a warm-up period). The annual savings 

generated through these improvements, inclusive of energy savings and maintenance savings, was calculated to be approximately $60,000 p.a. The investment required to implement these 

improvements is approximately $208,000. This represents a payback period of 3.4 years. These improvements would also generate a greenhouse gas emission reduction of approximately 650 

tonnes p.a. There are currently no funds available to implement these improvements. 

V/LINE ANNUAL REPORT 2008-2009 ENERGY EFFICIENCEIES OPPORTUNITIES PROGRAM REPORT 94/95

Disclosure s index 


Table 3.2 – Energy use expressed in greenhouse gas emissions and as an energy use indicator 

Period of energy use 1 July 2008 to 30 June 2009 

Name of group member/ business unit/ key activity/site Energy use pa (GJ) Energy use pa (GGE) Energy use as an indicator* 

V/Line Passenger 1,064,240 82,700 t CO 2 

-e 1.12 MJ / passenger km 

Table 3.4 – Changes in energy use as an indicator 

Name of group member/ business unit/ key activity/site Current energy use as an indicator Previous energy use as an indicator Reasons for change 

V/Line Passenger 1.12 MJ / pass km 1.20 MJ / pass km Increase in patronage 

PART 4 - DECLARATION 

Table 4.1 - Declaration of accuracy and compliance (mandatory information) 

The information included in this report has been reviewed and noted 

by the board of directors and is to the best of my knowledge, correct 

and in accordance with the Energy Efficiency Opportunities Act 2006 

and Energy Efficiency Opportunities Regulations 2006. 



The annual report of the V/Line Passenger Corporation is prepared in accordance with all 

relevant Victorian legislation. 

This index has been prepared to identify compliance with statutory disclosure requirements. 

MINISTERIAL DIRECTIONS 

Report of Operations 

Charter and purpose 

FRD 22B Manner of establishment and the relevant Ministers Inside cover, 3, 65, 87 

FRD 22B Objectives, functions, powers and duties Inside cover, 5, 17-19, 65 

FRD 22B Nature and range of services provided Inside cover - 19 

Management and structure 

FRD 22B Organisational structure 68 

Financial and other information 

FRD 29 Workforce data disclosures 42-43 

FRD 22B Occupational health and safety 18, 22-25 

FRD 15B Executive officer disclosures 87-88 

FRD 21A Responsible person and executive officer 

disclosures in the Financial Report 87-88 

FRD 22B Summary of the financial results for the year 62-63 

FRD 22B Significant changes in financial position during the year 62-63 

FRD 22B Major changes or factors affecting performance 6-13 

FRD 22B Subsequent events 91 

FRD 22B Application and operation of Freedom of Information Act 1982 66 

FRD 22B Compliance with building and maintenance provisions of Building Act 1993 67 

FRD 25 Victorian Industry Participation Policy disclosures 67 

FRD 22B Statement on National Competition Policy 67 

FRD 22B Application and operation of the Whistleblowers Protection Act 2001 67 

FRD 22B Details of consultancies over $100,000 63 

FRD 22B Details of consultancies under $100,000 63 

FRD 12A Disclosure of major contracts N/A 

FRD 24C Reporting of office-based environmental impacts 36-39, 93-96 

FRD 22B Statement of availability of other information Back cover 

FRD 10 Disclosure index 97 

Financial Statements 

Financial statements required under Part 7 of the FMA 

SD 4.2(f) Financial report 69 

SD 4.2(b) Operating statement 70 

SD 4.2(b) Balance sheet 71 

SD 4.2(a) Statement of changes in equity 72 

SD 4.2(b) Cash flow statement 72 

SD 4.2(c) Accountable officer’s declaration 70 

SD 4.2(c) Compliance with Australian accounting 

standards and other authoritative pronouncements 73 

SD 4.2(c) Compliance with Ministerial directions 66 

SD 4.2(d) Rounding of amounts 78 

SD 4.5.5 Risk management compliance attestation 67 

LEGISLATION 

Freedom of Information Act 1982 66 

Whistleblowers Protection Act 2001 67 

Victorian Industry Participation Policy Act 2003 67 

Building Act 1983 67 

Financial Management Act 1994 70, 92 

Audit Act 1994 92 

Project Team 

Daniel Moloney, Tom Perry, Clare Steele 

Design 

Nuttshell Graphics 

Print 

GEON Impact 

At V/Line we work to reduce our footprint where we can. In the interests of sustainability, 

this report has been printed using waterless technology on Australian-made recycled paper. 

To help reduce paper usage, this report may be viewed online at vline.com.au 

96/97 

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