annual report 2008-2009 - V/Line

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
V/LINE ANNUAL REPORT 2008-2009
CEO'S REPORT 12/13