Expression of Interest Brief - Public Transport Victoria

Expression of
Interest Brief
Appendix A+B
Melbourne Metropolitan
Tram (MR3 014) and
Train (MR3 015) Franchises

Important Notice
The Department of Transport (‘DOT’) has prepared this Appendix A and B to provide
further background information to Recipients. Recipients should read the Appendices
in conjunction with the EOI Brief and should review the terms and conditions set out in
the EOI Brief.
Whilst DOT has taken care in the preparation of the Appendices and the information
contained in them, neither the State nor the State’s Associates gives any warranty or
makes any representations, expressed or implied, as to the completeness or
accuracy of the information contained in the Appendices. The Recipient should make
its own independent enquiries regarding the information contained in the Appendices.

Contents
Important Notice 2
Glossary 4
Appendix A – Melbourne and its Public Transport Network 6
1 Introduction to Victoria and Melbourne 7
1.1 Overview of the State of Victoria 7
1.2 Growth of Melbourne 15
1.3 Levels of Government 20
1.4 Regulatory Environment 21
2 Public Transport in Victoria 28
2.1 History of Franchising in Melbourne 28
2.2 Victoria’s Rail Safety Arrangements 31
2.3 Public Transport Strategic Planning 34
2.4 Metropolitan Trams Overview 39
2.5 Metropolitan Trains Overview 42
2.6 Melbourne Public Transport Fares and Ticketing 45
2.7 Patronage 51
2.8 Revenue 56
2.9 Performance 59
2.10 Strategies to Improve Performance 62
2.11 Rolling Stock Procurement 65
2.12 Public Transport Infrastructure 68
Attachment 1: Key Facts and Figures 74
Appendix B – Statutory and Contractual Framework 79
3 Statutory Framework 80
3.1 Transport Act 80
3.2 Rail Corporations Act 82
3.3 Rail Safety Act 84
3.4 Transport Legislation Review 84
4 Contractual Framework 85
4.1 Franchise Arrangements 85
4.2 Transaction Documents 87
4.3 Direct Agreements 89
4.4 Interoperator Agreements 90
4.5 Third Party Agreements 90
4.6 Metlink & TTA Agreements 90
4.7 Public Transport Ombudsman (‘PTO’) 92
Endnotes 93

Glossary
The following terms have been used within this document and singular includes the plural and conversely,
if a word or phrase is defined its other grammatical forms have a corresponding meaning.
Term
Meaning
Confidentiality Deed
Current Franchisees
The confidentiality deed, executed by the Recipient prior to receiving this EOI Brief
Metrolink Victoria Pty Ltd (known as Yarra Trams) for the tram Franchise and
Connex Melbourne Pty Ltd (known as Connex) for the train Franchise
DOI Department of Infrastructure – renamed Department of Transport from 30 th April 2008
DOT
EOI Brief
EOI Process
EOI Response
Franchise Agreement
Franchisee
Franchises
Government Information
Infrastructure Lease
ITT Documentation
Department of Transport – formerly known as Department
of Infrastructure up to 30 th April 2008
This brief inviting EOI Responses, including Appendices, Schedules and Attachments
The process from the advertisement seeking expressions of interest
to the announcement of the Shortlist of Respondents
The expression of interest in the relevant Franchise submitted by a
Respondent in accordance with the requirements of this EOI Brief
The document described in Section 4.2 of Appendix B
The party responsible for operating a Franchise
Contracts with the State for operation of the tram and train networks which involves
passenger service delivery, infrastructure maintenance, and rolling stock maintenance
Information contained in this EOI Brief or any information which may
be provided in association with it, including estimates, predictions
or the assumptions upon which they may be based
The document described in Section 4.2 of Appendix B
The documentation for each of the new Franchises issued
to Shortlisted Respondents which will include:
general information and instructions;
operational and technical specifications;
a commercial framework summary;
an information memorandum;
the evaluation criteria and response schedules;
due diligence information; and
the draft Transaction Documents
4
Commercial in Confidence Expression of Interest Brief

Term
Meaning
ITT Process
ITT Response
The process from release of the ITT Documentation to Shortlisted Respondents,
up to execution of the Transaction Documents for the relevant Franchise
The document submitted in response to the ITT Documentation, being
a fully priced binding offer to undertake the relevant Franchise
Personal Information As defined under the Privacy Act 1988
Project
Recipient
Related Party
Respondent
Respondent’s Associates
Shortlist
Shortlisted Respondents
State
State’s Associates
Transaction Documents
Transaction Process
Melbourne’s metropolitan rail franchising (‘MR3’) project, being the
competitive re-tendering of Melbourne’s train and tram franchises
Any person who receives a copy of this EOI Brief having executed
and returned to the State the Confidentiality Deed
Has the meaning given to the expression ‘related entity’ by section 9 and
the meaning given to the expression ‘related body corporate’ by section
50 of the Corporations Act 2001 and includes any Associate (as defined
by sections 10 to 17 of the Corporations Act 2001) of a person
Any party or parties that respond to this EOI Brief in
accordance with the requirements of this document
A Respondent, its consortium members (if applicable), its Related Parties
and its respective officers, employees, agents and advisers
The list of those Respondents who will be invited to submit
an ITT Response for a particular Franchise
Those Respondents that are invited by the State to submit
an ITT Response for a particular Franchise
The State of Victoria
A department, agency or regulatory authority of the State or an officer,
employee, agent, contractor, adviser or consultant of any of them
The contractual documents for the new Franchises to be entered into by the Franchisees
The process from the commencement of this EOI Process to the execution of the
Transaction Documents and transition to the commencement of the new Franchises
5

Appendix A –
Melbourne and its
Public Transport Network

Introduction to Victoria and Melbourne
1.1 Overview of the
State of Victoria
1.1.1 Geography and Climate
Covering an area of approximately
227,600 square kilometres, roughly
the same size as the British Isles,
Victoria makes up three percent
of Australia’s land mass.
With a population of 5.2 million people 1 ,
Victoria is Australia’s second most
populous state, representing almost
25 percent of the national population.
This makes Victoria the most densely
populated state in Australia.
Victoria’s capital, Melbourne, is
located in the south of the state
on Port Philip Bay. Covering a
metropolitan area of approximately
8,800 square kilometres, Melbourne
is home to 73 percent of Victorians
with a population of 3.6million 2 .
The largest city outside of Melbourne
is Geelong, located only 75 kilometres
away. Geelong has a municipality
population of approximately 208,000 3
people. Other leading urban centres
in Victoria include Ballarat, Bendigo,
Shepparton, Mildura, Warrnambool
and the Latrobe Valley.
Despite its small size, the Victorian
climate varies across the state. The
north has much drier and warmer
weather than the south. Melbourne’s
temperate climate can be characterised
as warm to hot in summer (December
to February), mild in autumn (March
to May), cold and damp in winter
(June to August), and cool in spring
(September to November).
The annual average rainfall for
Melbourne is around 654mm 4 .
Victoria is currently experiencing
a drought, with no periods of
sustained above-average rainfall in
most of the region 5 since 2001.
7

Table 1: Melbourne’s Average Daily Temperatures and Monthly Rainfall*
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Annual
Average daily maximum temperature (°Celsius)
25.8 26.5 24.0 20.5 17.3 14.4 13.9 15.3 17.3 19.7 21.8 24.2 20.1
Average daily minimum temperature (°Celsius)
15.4 15.8 14.3 11.7 9.8 7.6 6.8 7.6 9.0 10.5 12.2 13.9 11.2
Average monthly rainfall (mm)
52.4 49.0 40.0 52.1 58.8 48.6 45.1 54.6 59.2 69.5 64.2 61.1 654.4
* Averages are for the period (1971–2000). Source: Australian Bureau of Meteorology – ABS 2007 Australia Yearbook.
1.1.2 General economic Data
Australia is one of the most politically
and economically stable nations in the
Asia-Pacific. Now in its sixteenth year
of consecutive growth, the Australian
economy has enjoyed an average growth
rate of 3.25 percent since 1990, with
CPI inflation averaging 2.5 percent since
1993 6 . Australia’s Gross Domestic
Product (GDP) was US$756.4billion
in 2006, with an increase of
4.4 percent forecast in 2007 to
US$789.7billion 7 . With a GDP per capita
of US$36,274 in 2006 8 , the quality
of life in Australia has been judged
the best in the Asia Pacific region.
Victoria has one of the strongest and
most resilient economies in the world.
While Victoria occupies only three
percent of Australia’s total landmass, it
accounts for 25 percent of the nation’s
economy 9 . The State has enjoyed an
average growth rate of 3.6 percent over
the 10 years to 2005/06, with a further
3.75 percent forecast for 2007/08 10 .
Victoria’s productive capacity continues
to expand, with business investment
growth averaging 10 percent per
year for the past six years and record
building approvals, indicating ongoing
growth in building activity 11 .
Victoria’s triple-A credit rating was
reaffirmed by international credit rating
agencies Moody’s Investor Services
in January 2007 and by Standard
& Poor’s in September 2007. Both
agencies cited Victoria’s strong fiscal
position, lower debt and prudent
financial management as key factors
behind the triple-A credit rating.
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Commercial in Confidence Expression of Interest Brief

Table 2: Key Economic Indicators at a Glance 12
Measure Unit Date Australia Victoria Victoria’s Share
GDP/GSP* AUD Bil 2005/06 922.0 228.0 24.8%
GDP/GSP growth % 2005/06 2.8 2.7
GDP/GSP per capita AUD 2005/06 45,021 45,135
Population Mil Dec 06 20.9 5.2 24.8%
Employment Mil Jul 07 10.5 2.6 24.8%
Labour Force Mil Jul 07 11.0 2.7 24.9%
Unemployment rate % Jul 07 4.3 4.4
Participation Rate % Jul 07 65.0 64.8
Inflation rate (CPI) % 2006/07 2.1 2.0
Exports (goods) AUD Bil 2006/07 168.2 20.3 12.1%
Business R&D AUD Bil 2005/06 10.1 3.0 29.3%
* GSP - Gross State Product.
Victoria’s economy is built on a
tradition of exporting. In 2006/07,
Victorian exports totalled
approximately AUD$20.3 billion
and included agricultural produce,
manufacturing, resources and the
rapidly growing services sector 13 .
Victoria represents almost onethird
of the national manufacturing
output and is leading the way in
developing new industries. The state
is responsible for almost 60 percent
of Australia’s automotive turnover,
including significant exports 14 .
Melbourne has one of the highest
standards of living in the world and
is continually ranked as one of the
‘World’s Most Liveable Cities’ by the
‘Economist Intelligence Unit’ (EIU) 15 .
It is home to many of Australia’s
leading companies such as BHP-
Billiton, National Australia Bank, ANZ
Bank, Toll Holdings, Foster’s Brewing,
and Orica. Victoria is also a base for
international companies such as Hewlett
Packard, IBM, Toyota and Bosch.
1.1.3 Transport Infrastructure
Victoria has an extensive transport
network, which incorporates
road, rail, air and sea transport to
move people and freight locally,
domestically and internationally.
With more than 200,000 kilometres
of road, Victoria’s roads carry more
than 30 billion tonne-kilometres of
freight and 50 billion vehicle kilometres
of travel each year. Almost all goods
within the metropolitan area and more
than 80 percent of goods in regional
Victoria are carried by road 16 .
Regional Victoria is linked to Melbourne
by an extensive passenger and freight
rail network. The publicly owned V/
Line has responsibility for the operation
and maintenance of 4,100 kilometres
of broad and standard gauge rail track
used by the passenger rail services
it operates, as well as for freight
services operated primarily by the
privately owned Pacific National 17 .
9

Only 16 percent of regional freight
(export grain and containers) is currently
transported on rail; with the State
targeting significant growth of freight to
ports on rail by 2010 18 . This policy will
accommodate future growth and reduce
congestion on Melbourne’s roads.
Intra and inter city bus services
also operate within regional Victoria
to support and supplement the
regional passenger rail network.
Within Melbourne travel by car currently
accounts for 91 percent of all motorised
travel (i.e. excluding people travelling in
freight vehicles, walking and cycling) 19 .
High car usage has led to a considerable
congestion problem estimated to cost
the state something in the range of
AUD$1.3-$2.6 billion per annum 20 . To
accommodate Melbournians’ car usage,
there are more than 70,000 car parking
spaces available within Melbourne
City 21 , with 48,000 of these spaces
estimated to be permanent or long stay
car spaces leased to private companies
and individuals 22 . A levy was introduced
on these permanent car spaces by
the State in 2005, to encourage
commuters who frequently drive to the
city and park all day to consider other
options, such as public transport 23 .
Melbourne’s road network is supported
by an extensive public transport network
incorporating 15 train routes, 28 tram
routes and over 300 metropolitan
bus routes. Approximately 84 percent
of Melbourne’s population is within
400 metres of a bus route compared
with 15 percent within 400 metres of
a tram route and 23 percent within
800 metres of a train station 24 .
The State is actively encouraging a
shift to public transport, targeting an
increase in public transport usage from
9 percent to 20 percent of all motorised
trips by 2020. To support this, the State
is investing in a number of projects
to encourage public transport use.
Melbourne Airport, situated less than 40
minutes drive from central Melbourne, is
Australia’s largest 24 hour curfew free
passenger and freight airport, handling
over 350,000 tonnes of air freight each
year 26 . On average, 465 international
flights and 2,786 domestic flights
arrive at Melbourne Airport each week,
bringing over 4.5 million international
and nearly 18 million domestic
passengers to Melbourne every year.
Like the airport, the Port of Melbourne
never closes. Situated just two
kilometres from the Central Business
District (‘CBD’) it is Australia’s largest
and busiest port, handling almost 40
percent of Australia’s container trade.
It handles AUD$70 billion in trade
and contributes AUD$5.4 billion to
the Victorian economy each year 27 .
The Port of Melbourne has recently
commenced dredging for the Port
Phillip Bay channel deepening project,
a project which the Australian Council
for Infrastructure Development has
rated as the nation’s most valuable
infrastructure project, forecasting
that it could add AUD$14.8 billion
to Australia’s GDP by 2030 28 . This
project commenced in early 2008 29 .
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Commercial in Confidence Expression of Interest Brief

1.1.4 Technology
Victoria is an innovative hub for worldclass
science and technology. The
State is committed to sustained growth
having invested AUD$1.8 billion into
science, technology and innovation
since 1999. Victoria is at the centre of
Australia’s Information Communications
Technology (ICT) industry. Globally
competitive in a number of areas
including: telecommunications;
electronic games; web applications
software; niche software and services.
Victoria is home to one of the largest
research and development clusters
in the Southern Hemisphere 32 .
More generally, Australians have
some of the highest rates of internet
access with over 74 percent of the
population accessing the internet 30
and 65 percent of households with
internet access. Australia is rated
third behind Sweden and the US for
home internet access. Mobile phone
uptake has also been rapid, with over
80 percent of persons aged 16 years
and over with a mobile phone 31 .
1.1.5 Financial Services
Australia’s banking sector enjoys an
international reputation for excellence
in financial market regulation and
supervision, with the 2006/07 Global
Competitiveness Report ranking the
soundness of Australia’s banking
sector eighth in the world, out of
125 countries 33 . Many of Australia’s
financial services industry providers
have headquarters in Melbourne, as well
as many international merchant banks
and financial services companies 34 .
1.1.6 Education
Australians are among the most highly
educated in the world. Over a third of
the workforce has tertiary qualifications
and around three million people are
fluent in a second language. The close
working relationship between the
education sector and industry ensures
training demands are met; and has
resulted in Australia’s education system
being ranked in the top four countries
worldwide in terms of meeting the
needs of a competitive economy (World
Competitiveness Yearbook 2005) 35 .
Victoria has the highest rate of university
attendance and graduations in the Asia
Pacific Region 37 . Within Victoria there
are nine universities and a number of
accredited private higher education
providers, with campuses located in
Melbourne and regional Victoria. More
than 51,000 international students
were enrolled at Victorian universities
in 2005, equating to one in every five
students 38 . There are approximately
280,000 students enrolled in primary
schools in Melbourne and 235,000
enrolled in secondary schools 39 .
1.1.7 Employment
Employment growth has been strong
in Victoria, with the participation
rate of 65 percent in 2007 close to
record highs 40 and an unemployment
rate of 4.5 percent, the lowest level
since 1990, with only 124,400
unemployed 41 in Victoria.
11

Figure 1: Victoria’s Unemployment and Participation
42 43
Rates 1990 – 2007, respectively
12.5
Percentage (%)
10.0
7.5
5.0
2.5
0.0
1990 1995
Year
2000 2005
66
65
Percentage (%)
64
63
62
61
1990 1995
Year
2000 2005
Figure 2: Employment Growth in Victoria, Illustrating the Proportion
42 43
of those Employed Full-Time and Part-Time, 1990 – 2007
3000
2500
Thousands (000)
2000
1500
1000
Part-time
Full-time
500
0
1990
1995 2000
2005
Year
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Commercial in Confidence Expression of Interest Brief

The main driver of the increased
participation rate is the growing number
of women joining the workforce. Parttime
employment is a particular feature
of Australian women’s involvement
in the workforce. The proportion of
people working part-time to full-time
has increased over the last 17 years
from 21 percent in 1990 to almost
30 percent in 2007. This reflects
the increased flexibility available to
both men and women who choose
to work part-time for many reasons
including, seeking work-life balance,
spending more time caring for family,
studying or easing into retirement.
Within Melbourne CBD total employment
has increased by 18 percent in the six
years to 2006, with the greatest growth
occurring between 2004 and 2006 44 .
It is anticipated that employment
in the CBD will continue to grow by
approximately one percent per year for
the next five to ten years with strong
growth expected in the knowledge-based
industries and business services 45 .
The Most Liveable City
Globally recognised as one of the
top cities in the world, Melbourne
was rated the second best city in
the world to live by the Economics
Intelligence Unit (Economist Magazine)
in 2007. Rated second to Vancouver
out of 132 cities, Melbourne was
considered to have low crime rates,
little threat from instability or terrorism
and highly developed transport and
communications infrastructure 49 .
Melbourne offers an attractive
lifestyle, with a sophisticated arts
scene, great shopping, a passion for
eating and drinking, extensive parks
and gardens 46 , spacious suburbs,
good education, integrated public
transport and a modern road system 47 .
Melbourne is a fun, safe and healthy
environment in which to live and work.
A multilingual and multicultural
city, Melbourne’s open and tolerant
culture supports a high quality of life
for those who choose to live, work,
study or visit here 50 . Melbourne’s
residents come from over 233 different
nations, with over 35 percent of the
population born overseas 51 and over
30 percent speaking a language
other than English at home 52 . Within
Melbourne there are more than
100 religious faiths practiced 53 .
Melbourne is Victoria’s primary tourist
destination, attracting more than
6.6 million visitors each year, which
generates more than AUD$3.8 billion
for Melbourne’s economy 48 . Melbourne
also has one of the finest collections
of parks and gardens of any city
in the world with many of the best
gardens within easy walking distance
of the Central Business District 54 .
Melbourne acts as the gateway to
many of Victoria’s tourist attractions.
13

1.1.8 Melbourne’s Major Events
Melbourne hosts a range of attractions
and major events throughout the
year. Public transport plays a key
role in transporting people to and
from many of these events. The
major events that regularly occur
each year are listed below.
Major Sporting Events
• Australian Open Tennis – Melbourne
hosts the grand slam for the Asia/
Pacific region each January. Held
on the fringe of Melbourne City,
the Australian Open attracted
more than 600,000 attendees
over 14 days in 2008 57 ;
• Australian Formula One Grand Prix
– held each March at Albert Park
Lake, in excess of 300,000 people
attend the three day event 58 ;
• Australian Rules Football (AFL)
– the season is played over 22
weeks, plus finals, from April to
September, with approximately
100 games of AFL played in
Melbourne at one of two central
locations, attracting approximately
4.2 million people in 2007 59 ;
• Melbourne Cup Carnival –
Melbourne’s horse racing carnival,
the feature of the Spring Racing
Carnival, occurs every October/
November over four days at
Flemington racecourse. Attracting
almost 400,000 people in 2007, the
event is heavily dependent on public
transport for transporting people
to and from the racecourse 60 ; and
• International Series Cricket –
Melbourne hosts the Boxing Day test
match every year at the Melbourne
Cricket Ground. Located on the city
fringe, the 2007 test series attracted
166,000 people over four days 61 .
Other Major Events
• Melbourne International Comedy
Festival – held over three weeks
every March/April within the
Melbourne CBD, the festival attracted
approximately 483,000 people
to over 4,100 events in 2007 62 ;
• Melbourne International Film Festival
– held every year for 19 days over
July/August within the Melbourne
CBD and surrounding suburbs, the
festival attracts between 170,000
- 180,000 people annually 63 ; and
• Royal Melbourne Show – held at
the recently renovated Melbourne
Showground’s, over 11 days every
September, the ‘Show’ attracted
more than 500,000 people in 2007 64 .
Other significant events that
occur annually in Melbourne,
for which attendance figures
are not published, include:
• Melbourne International Arts
Festival – occurring for 17 days
every October, predominantly in the
CBD, the festival presents events in
the fields of dance, theatre, music,
visual arts, and multimedia 65 ;
• Moomba – held over four days
during the Labour Day long weekend
in March, this Melbourne Festival
is hosted in the CBD on the Yarra
River and parklands 66 ;and
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Commercial in Confidence Expression of Interest Brief

• Melbourne Food and Wine Festival
– held over 14 days in February/
March, this Festival is hosted at
a number of venues both in the
CBD and around Melbourne 67 .
1.2 Growth of Melbourne
1.2.1 Population Growth
The population of Victoria has more than
doubled over the last 50 years, from
2.52 million in 1955 to 5.20 million in
2007 68 , while Melbourne’s population
increased by 228 percent from 1.57 69
million to 3.68 million in that same
period. Over the ten years to 2007,
population growth in Melbourne has
consistently exceeded one percent per
annum 70 and in the five years to June
2006, Melbourne recorded the largest
capital city population growth of all
the State Capital Cities in Australia,
increasing by 273,000 people 71 .
Current trends indicate that metropolitan
Melbourne will grow substantially
over the next thirty years, with the
State planning for the capacity to
comfortably absorb up to one million
additional people, or 620,000 extra
households by 2020 72 . In fact, if
the current growth rates continue,
Melbourne’s population is projected
to overtake that of Sydney, Australia’s
most populous city, by 2028 73 .
Over the last few years, the greatest
population increases within Melbourne
have been in the outer suburban
fringes, such as the north-west
suburbs of Caroline Springs, Taylors
Hill and Burnside, and the south-west
suburbs of Point Cook, Werribee
South and Sanctuary Lakes 76 .
Increases in Australia’s population are
a result of net overseas migration and
natural increase (the excess of births
over deaths). However since 1996, the
rate of natural increase has been in
decline due to decreasing birth rates
and an increasing life expectancy. As
a result, Australia’s overall population,
like that of most developed countries, is
ageing. In June 2007 the median age in
Victoria was 36.9 years, slightly above
the national average of 36.8 years 77 .
Since 1998-99 net overseas migration
has comprised 45 percent or more
of national population growth 79 ,
increasing to 56 percent in 2006/07 80 .
Many of these migrants arrived under
the skilled migration program 81 with
most arriving from the United Kingdom,
New Zealand, China and India 82 .
15

Figure 3: Melbourne’s Population Growth 1955 – 2005
74 75
and Growth Projections to 2030
5.0
4.5
Population (millions)
4.0
3.5
3.0
Acual Growth
Projected Growth
2.5
2.0
1.5
1955 1965 1975 1985 1995 2000 2015 2026
Year
Figure 4: Proportion of Population by Age Group in Victoria, 1971 - 2007 78
100%
90%
65 years and over
Proportion of Population
80%
70%
60%
50%
40%
30%
45-64 years
15-44 years
20%
10%
0-14 years
0%
1971 1976 1981 1986 1991 1996 2001 2006
Year
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Commercial in Confidence Expression of Interest Brief

Figure 5: Permanent migrant arrivals, top ten countries of birth, arrivals in 2004-05 83
Proportion of migrant arrivals
100%
90%
80%
70%
60%
14.8
50%
40% 36.0
30%
20%
14.1
9.0
7.6
4.6
3.7
3.4
2.5
2.4
1.9 100
10%
0%
Other
United Kingdom
New Zealand
China
India
Sudan
South Africa
Philippines
Singapore
Malaysia
Sri Lanka
Total
Country
1.2.2 Urban Development
The Melbourne metropolitan region
covers a broad area of 8,806 square
kilometres 84 , resulting in a relatively
low population density of 468 people
per square kilometre 85 . While many of
the inner city suburbs are becoming
more densely populated with the
development of multi-level apartment
buildings, the outer suburbs are growing
at the greatest pace. This continued
development in the outer suburbs is
expanding the metropolitan region.
A consequence of this rapid growth
in the outer suburbs and the
expanding urban area is that the
public transport systems are currently
deficient in these areas, resulting in
greater dependence on motorised
travel for some Melbournians.
To combat the urban sprawl, the
State has implemented an urban
growth boundary. This boundary
places limitations on the further
expansion of the existing urban area,
with all future urban expansion to
be directed along distinct corridors
that compliment access to existing
public transport infrastructure.
Melbourne City was traditionally
considered the central hub for working,
events and shopping, with many of the
public transport routes radiating from
the city. With only 11,600 86 residents,
the city is home to only 0.3 percent
of Melbournians; however it has a
daytime business, working and visiting
population of more than 650,000
people and a night-time population of
some 128,000 people. Approximately
47 percent of daily visitors come for
work purposes and 29 percent come
for shopping, recreation and dining 87 .
17

A significant amount of travel in
Melbourne is across suburbs which has
led to the traditional CBD oriented radial
public transport system being enhanced
by the introduction of the SmartBus
Program. This program provides orbital
bus services connecting train stations,
shopping centres and other community
facilities 91 , and has initiated a number
of local bus improvements to provide
greater flexibility in public transport.
1.2.3 Travel Patterns
In March 2007 there were 2.22 92
million passenger vehicles registered in
Melbourne, representing a concentration
of approximately 592 passenger vehicles
per 1,000 people. This concentration
has been increasing over recent years
from 579 per 1,000 people in 2004.
High car ownership in Melbourne has
traditionally contributed to a relatively
low uptake of public transport. Other
contributing factors to the low uptake
include the high length of roads per
capita, low population densities, the
high quality of the roads and the
higher travel times of public transport
compared to the road network 94 .
An outcome of Melbourne’s high
dependence on private vehicles is
road congestion. A 2006 Victorian
Competition & Efficiency Commission
report found that the economic cost
of transport congestion was between
AUD$1.3 billion and $2.6 billion
and warned that these costs could
double over the next 15 years 101 .
While the car remains the preferred
form of transport for Melbournians,
public transport use is increasing
with patronage growth currently at
record highs. In 2006/07 financial
year, 418.5 million trips were made
on Melbourne’s metropolitan public
transport, an increase from 387.8
million in 2005/06 104 . The State and
other stakeholders are currently
implementing a number of strategies
to facilitate the continued growth in
public transport usage and combat
the affects of road congestion.
While seventy percent of commuters
travelling to the CBD in the morning
peak utilise public transport, public
transport only makes up approximately
nine percent 95 of all motorised trips in
Melbourne. This proportion is quite low
when compared to other cities around
the world, as illustrated in Figure 7.
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Commercial in Confidence Expression of Interest Brief

Figure 6: Passenger Vehicles per Thousand Residents of Melbourne 2004-2007 93
595
Registered passenger vehicles
per thousand residents
590
585
580
575
570
2004 2005
Year
2006 2007
Figure 7: Relative Utilisation of Public Transport
96 97 98 99
100%
Percentage of all motorised trips
taken by public transport
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Hong Kong
Singapore
Madrid
Tokyo
London
Stockholm
Birmingham
Paris
Berlin
Manchester
Sydney
Melbourne
City
19

1.3 Levels of Government
Australia has three levels of elected
government: federal, state and local.
Federal and state parliaments along
with local councils are responsible
for creating laws. Executive bodies,
usually from the political party with the
parliamentary majority, are accountable
for implementing legislation at each
level. At the federal and state level
an independent judiciary exists to
enforce the laws. The State judiciaries,
headed by the Supreme Court, take
primary responsibility for developing
and applying criminal law 105 , while the
High Court of Australia acts as the final
court of appeal and makes rulings on
the meaning of the Constitution 106 .
Australia has a transparent legal
system and a business focused
regulatory environment. For example,
in terms of intellectual property, the
patent and copyright enforcement
regime is ranked second in the
region and fourth in the world (World
Competitiveness Yearbook 2005).
1.3.1 Federal Government
The Commonwealth of Australia was
established on the 1st of January
1901, with the six self-governing British
colonies becoming states. Australia’s
formal Head of State is the Queen of
the United Kingdom. Her representative
in Australia, the Governor-General, is
responsible for ‘advising, encouraging
and warning’ the government of the day.
Australia is governed through a
bicameral parliamentary system
consisting of the House of
Representatives and the Senate.
The majority party in the House of
Representatives will form the executive
arm of Government and is responsible
for selecting the Prime Minister 107 . At the
2007 National Election, the Australian
Labor Party defeated the Coalition
of the Liberal and National Parties,
after eleven years in Opposition. As a
result, Mr Kevin Rudd replaced Mr John
Howard as Prime Minister of Australia.
Under the constitution, the Federal
Government is limited to creating
laws in relation to a range of specific
subjects. These include taxation,
immigration, foreign affairs, trade and
defence. Despite this constitutional
restriction, the Federal Government can
(in close cooperation with the states)
influence other areas by drawing on
its large financial capacity 108 . In terms
of transport, the Federal Government
has little involvement in intra-state
operations and projects. Investment
is typically aimed at interstate
infrastructure however, significant
investments have been made in
some metropolitan road projects.
1.3.2 Victorian State Government
Despite the formation of the
Commonwealth of Australia, the State of
Victoria maintains its own constitution.
Proclaimed in 1855, it stipulates that the
Parliament of Victoria must comprise
of the Crown, a Legislative Assembly
and a Legislative Council. The Crown is
represented in Victoria by the Governor,
whilst the Legislative Assembly and
Legislative Council form the Lower
and Upper Houses of Parliament.
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Commercial in Confidence Expression of Interest Brief

The majority party in the Legislative
Assembly will form the executive arm
of Government and is responsible for
electing the Premier 109 . The Labor Party
retained Government in the 2006 state
election and in 2007 Mr John Brumby
succeeded Mr Steve Bracks as Premier.
The Victorian Parliament has the power
to make laws for Victoria on any matter
not covered by the Commonwealth
Constitution. State laws are invalid if
inconsistent with Commonwealth law 110 .
The State Government, through the
Minister for Public Transport 111 , has the
greatest influence over public transport
in Melbourne. The Minister is responsible
for providing strategic leadership on
issues including public transport policy
and expenditure for public transport
improvement and expansion projects.
Coordination and monitoring of public
transport services is performed by
the Public Transport Division, within
the Department of Transport, under
the Director of Public Transport.
1.3.3 Local Government
Victoria is divided into 79 Local
Government Areas. Of these areas,
48 are in regional Victoria and the
remaining 31 are in the Melbourne
metropolitan region. Each Local
Government area is administered by
a Local Council, which consists of
democratically elected councilors
and an operational arm headed up by
a Chief Executive Officer (CEO) 112 .
Victorian Acts of Parliament specify the
roles, functions and powers of Local
Councils. Councils provide economic,
human, recreational, property and
cultural services to local communities.
They also have the power to make
local laws, known as by-laws, providing
they are consistent with State and
Federal Acts and Regulations. Councils
enforce these laws (and some
State laws) covering matters such
as land use planning, environment
protection, public health, traffic,
parking and animal management 113 .
1.4 Regulatory
Environment
Further to the legislative and regulatory
framework described in Section 3.2.3
and Appendix B to this EOI Brief, the
Franchisees must consider the following.
1.4.1 Disability
Discrimination Act
The Federal Disability Discrimination
Act 1992 (DDA) provides protection
for everyone in Australia against
discrimination based on disability.
The DDA makes it against the law to
discriminate against someone if they
have a disability in the following areas:
employment; education; access to
places used by the public; provision
of goods, services and facilities;
accommodation; buying land; activities
of clubs and associations; sport; and
the administration of Commonwealth
Government laws and programs 114 .
21

Table 3: Accessibility Targets for Public Transport
Target date
% Progress towards full compliance
31 December 2007 25
31 December 2012 55
31 December 2017 90
31 December 2022 100*
* Does not include those trams and trains which require full compliance by 2032.
Specified within the requirements for
access to places used by the public
is public transport, including trains,
buses, ferries, boats, ships and
planes. The Disability Standards for
Accessible Public Transport 2002 were
formulated by Australia’s Attorney-
General to enable public transport
operators and providers to remove
discrimination from public transport
services. These standards commenced
operation on 23 October 2002 115 .
Victorian public transport is used by both
able bodied and those with disabilities
or impaired mobility, including elderly,
frail and pram users. It is estimated that
20 percent of Victorians have impaired
mobility, and with an ageing population,
this is anticipated to increase 116 .
Australia’s DDA stipulates the
accessibility standards of public
transport assets, including premises,
conveyances, infrastructure,
information services, signage and
lighting. These standards stipulate a
rollout schedule of compliance over
time with milestones at 2012 and
2017, with 100 percent achievement
required by 2022. An exception has
been made for rolling stock, which is
targeted at 100 percent by 2032.
At present, the Melbourne tram and
train operations have achieved the
2007 target of 25 percent compliance
for most of the requirements. The
25 percent compliance was not
however, achieved for tram and train
platforms or tram rolling stock.
The State’s Accessible Public Transport
Action Plan 2006-12 provides a list
of the actions required to maintain
progress on relevant issues for
accessibility and meet the 2012
milestones. Future priorities include
additional tram platform stops, access
paths and ramps at rail stations.
For further information on Disability
Standards for Accessible Public
Transport 2002 and the State’s
Accessible Public Transport
Action Plan 2006-12, refer to
the Department of Transport’s
website at www.doi.vic.gov.au.
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Commercial in Confidence Expression of Interest Brief

1.4.2 Workplace Relations
in Australia
All Australian employers are required
to comply with Australia’s workplace
relations system. This includes
requirements under working conditions,
discrimination, workers compensation
and occupational health and safety.
Working Conditions
Within Australia, employees
are employed with a variety of
contract types including Union
Collective Agreements, Australian
Workplace Agreements, Employee
Collective Agreements or an
Individual Employment Contract.
Regardless of the type of contract,
employers have, minimum obligations
set by the Government, these include
minimum wages; maximum working
hours; four weeks paid annual leave;
ten days paid sick leave and one
year unpaid maternity leave.
The majority of Melbourne’s tram
and train franchise employees are on
Union Collective Agreements. This is
a collective agreement between the
employees and employer negotiated by
the employees’ union on their behalf. The
relevant unions in the public transport
industry are Australian Rail, Tram and
Bus Industry Union (RTBU), Australian
Services Union (ASU), the Association
of Professional Engineers, Scientists
and Managers, Australia (APESMA),
Transport Workers Union (TWU), and
Electrical Trades Union (ETU).
Also commonly used is the Individual
Contract, which is an individual written
agreement between the employer
and an employee that sets out terms
and conditions of employment.
Australian Workplace Agreements
(AWA) were introduced by the
previous Coalition Government in
2006. An AWA is an individual written
agreement between an employer
and an employee that sets out terms
and conditions of employment.
The new Federal Labor Government
plans to phase AWA’s out over the
coming years and implement a new
industrial relations system by January
2010. Until then, individual transitional
employment agreements can be made
available for new employees or those
already on AWA’s. These agreements
must ensure employees are not
disadvantaged against the relevant
award or enterprise agreement 117 .
For further information on working
conditions refer to the Australian
Government’s Workplace Authority’s
website at www.oea.gov.au. For further
information on the unions refer to
their respective websites: Rail, Tram
and Bus Industry Union: http://www.
rtbuvic.com.au/; Australian Services
Union: www.asu.asn.au, APESMA:
www.apesma.asn.au, Electrical Trades
Union: www.etu.com.au, Transport
Workers Union: www.twu.com.au.
Discrimination
Both Australia and Victoria have
legislation regulating against
discrimination in the workplace
or employment related activities.
Discrimination is prohibited in many
areas including, but not limited
to, sex, race, disability, religious
belief, criminal record, and age.
For further details refer to the Human
Rights Commission website at www.
humanrightscommission.vic.gov.au.
23

Workers Compensation
Employers are obliged to provide
workplace injury insurance for their
employees. The Victorian WorkCover
Authority provides this insurance to
Victorian employers. The insurance
covers the costs associated with a
worker becoming injured or ill because
of their work. Potential costs include
replacement of lost income, medical
and rehabilitation treatment costs,
legal costs or in the event of a serious
injury, lump sum compensation.
The insurance cost is based on the
assessed level of risk within the
industry sector and previous claims
from that industry. For further details
refer to the WorkCover website
at: www.workcover.vic.gov.au.
Occupational Health and Safety
Australian employers must provide a
safe and healthy workplace for their
workers and contractors. This includes
the provision of a safe plant (machinery
and equipment), safe systems of
work, safe policies around the use
of chemicals, maintenance of a safe
workplace, the provision of training,
instruction, information and supervision
to work in a safe and healthy manner
and the provision of adequate facilities,
including bathrooms and drinking water.
For further information on occupational
health and safety requirements,
refer to the WorkCover website
at www.workcover.vic.gov.au.
1.4.3 Regulation of Foreign
Investment
The Australian Government encourages
foreign investment, provided that it is
consistent with the national interest.
Foreign investment is regulated
through the Foreign Acquisitions and
Takeover Act 1975 regime. The regime
is administered by the Australian
Treasurer and the Foreign Investment
Review Board (FIRB), an advisory body
within the Federal Government.
Foreign investment proposals are
submitted to the FIRB, either on
a compulsory or voluntary basis.
Proposals are compulsory under a
number of conditions including, but not
limited to: acquisitions of an Australian
company that has total (gross) assets
exceeding AUD$50m; proposal to
establish a new business involving
a total investment of AUD$10m or
more and direct investment by foreign
governments and their agencies.
Voluntary applications to the FIRB
are generally recommended.
The Federal Treasurer has wide
powers to prohibit foreign investment
proposals that are considered
contrary to the national interest.
For further information regarding the
regulations of foreign investment in
Australia, refer to the FIRB website at
www.firb.gov.au and the Invest Australia
website at www.investaustralia.gov.au.
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Commercial in Confidence Expression of Interest Brief

1.4.4 Australian Taxation
Companies in Australia are obliged to
pay tax and collect funds on behalf
of all three levels of Government.
Federal taxes are paid through
the Australian Taxation Office,
these taxes relate to all income
and expenses. This includes, but
is not limited to, the following:
• income tax on profits,
currently at 30 percent;
• Goods and Services Tax (GST),
currently 10 percent on some
goods and services purchased;
• excises; and
• Fringe Benefit Tax (FBT).
Victorian State taxes are paid
through the Victorian State Revenue
Office. These taxes relate to payroll
tax, stamp duty on motor vehicles,
property, land tax and a congestion
levy for CBD car-parking.
Local Government’s impose taxes
in the form of rates based on
the value of owned property.
Australia participates in double tax
agreements with some counties to
eliminate the double taxation of income.
Countries with agreements include:
Argentina, Austria, Belgium, Canada,
China (not including Hong Kong or
Macau), Czech Republic, Denmark,
Fiji, Finland, France, Germany,
Hungary, India, Indonesia, Ireland,
Italy, Japan, Kiribati, Korea, Malaysia,
Malta, Mexico, the Netherlands, New
Zealand, Norway, Papua New Guinea,
Philippines, Poland, Romania, Russia,
Singapore, Slovakia, South Africa,
Switzerland, Taiwan, Thailand, United
Kingdom, United States and Vietnam.
Companies operating in Australia
collect taxes on behalf of the
Government in the following areas:
• employee income tax, known as
Pay As You Go (PAYG) withholding
tax. Individual PAYG taxes
vary by an employee’s income
band. The tax rates for the
2007/08 financial year are:
−− 0 percent tax for income
earned up to $6,000;
−− 15 percent for income earned
between $6,001 - $30,000;
−− 30 percent for all income earned
between $30,001 - $75,000;
−− 40 percent for all income earned
between $75,001 - $150,000;
−− 45 percent for all income
earned over $150,001; and
−− An additional 1.5 - 2.5 percent
Medicare levy may also be payable;
25

• Superannuation Guarantee, currently
nine percent of an employee’s wage,
with the maximum limit capped once
the employees ordinary earnings is
AUD$36,470 per quarter, must be
preserved in their superannuation
fund until they reach the retirement
age. This age varies between 55 –
65, depending on the year of birth;
• Goods and Services Tax on
most goods and services
provided to customers; and
• reporting on Fringe Benefits Tax and
the Superannuation Guarantee.
For further information on Australian
Taxation refer to the following websites:
Australian Tax Office: www.ato.gov.
au; and Victorian State Revenue
Office: www.sro.vic.gov.au.
1.4.5 Visa and Immigration
Information
The Victorian Government recognises
the value that international business
people bring to the State, particularly
in terms of diversity of skills, potential
to expand local businesses and export
activity, and maximising employment
opportunities for Victorians.
All international business people
intending to work in Australia must
obtain a visa to enter Australia. Visas
are issued by the Australian Government
Department of Immigration and
Multicultural and Indigenous Affairs.
Visas can be obtained for a temporary
or short period of up to four years or
for permanent residency in Australia.
Business (Short Stay) Visas
Business people wishing to enter
Australia for a short period of time
or wishing to visit on a regular
basis for short periods of time, for
example a conference, business
meeting or negotiations, can obtain
a short stay visa. These visas are
valid for up to a three month period,
or multiple three month periods.
Business people can apply for an
Electronic Travel Authority (ETA)
Business Entrant – Short Validity
(subclass 977) through their travel
agent or over the internet. ETA’s
are currently available for passport
holders from over 30 countries. If
the passport holder is not eligible for
an ETA, they can apply for the more
traditional style visa, the Business
(Short Stay) Visa (subclass 456) 118 .
Business Development – Provisional
The Business Development – Provisional
Visa is available for periods between
three months and four years.
This visa caters for people with a
successful business career, who have
a genuine and realistic commitment
to a company in Australia.
The Business Development – Provisional
Visa falls into a number of sub classes,
based on the applicant’s role including:
• business owner;
• senior executive; and
• investor.
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Commercial in Confidence Expression of Interest Brief

Visa eligibility depends on which
sub-class of visa is being applied for
and includes, but is not limited to:
• the intention to establish or
manage a business in Australia;
• providing details of specified
business experience;
• having vocational English
language skills;
• having sufficient assets to settle in
Australia and under a certain age; and
• under 45 years, or under 55
years if State sponsored.
If applicants do not meet the Australian
Government criteria, they can apply
to the State for sponsorship to
obtain a visa. Sponsorship by the
Victorian Government, through the
Skilled Migration Program, requires
an agreement about the projected
outcomes a business or investment
plan will deliver to Victoria.
Visa holders are eligible to:
• work in Australia;
• travel in and out of Australia
any number of times as long
as the visa is valid; and
• have direct family accompany
them, who will also have
rights to study and work.
Business Development - Permanent
Provisional visa holders can apply for
business development permanent
visas once they have achieved the
Federal Government’s required criteria.
A direct permanent residence visa is
also available for high-calibre business
people - this requires State sponsorship.
Employer Nominated Scheme
This scheme enables Victorian
employers to recruit highly skilled
workers, or in the case of a Regional
Headquarter, the transfer of key
employees into Australia.
There are a number of other
possible visas for professionals
and other skilled migrants.
For further information on Australian
Immigration requirements, refer to the
Australian Department of Immigration
and Citizenship at www.immi.gov.au.
1.4.6 Other Regulatory
Requirements
The list of regulatory requirements
provided here is not an exhaustive
list of requirements of Australian and
Victorian companies and employers.
For further information, please refer to:
• all Victorian Legislation:
www.legislation.vic.gov.au; and
• all Federal legislation:
www.legislation.gov.au.
27

Public Transport in Victoria
The public transport system consists of
an integrated network of metropolitan
tram, train and bus services as well
as country train and coach services.
In addition to the metropolitan tram and
train systems, (described in sections 2.4
and 2.5) there is an extensive network
of bus services operated on behalf
of the State by private companies.
The network consists of 309 routes
and approximately 1500 buses. The
bus network is designed to act as a
feeder service connecting to the tram
and train system and to provide links
to suburban centres. In 2006/07,
the metropolitan bus system carried
approximately 84 million passengers.
Victoria is a compact State with
extensive inter-regional and interstate
transport links that support passenger
and commercial activity. V/Line
Passenger provides rail services
throughout regional Victoria. The system
comprises 1,152 route kilometres of rail
service over five corridors and in the
2006 financial year, V/Line Passenger
carried around 7.7 million passengers.
V/Line Passenger services running
between regional centres and
Melbourne utilise metropolitan track
as does Pacific National, (as a rail
freight operator). This use is governed
through rail access agreements.
2.1 History of
Franchising in
Melbourne
2.1.1 Public Transport
Operations to 1999 119
Melbourne’s first railway line opened
between Flinders Street and Sandridge
(now Port Melbourne) in September
1854, and over the next decade the
railway spread across the city area.
Cable trams appeared in Richmond
in 1885, and the first electric tram
began operation between Box Hill
and Doncaster in 1889. By the early
1900’s Melbourne had a comprehensive
tram and train network, and this
began to shape the city’s expansion,
with growth occurring along the
rail lines. Electrification of the train
system was completed in 1929, and
the last cable tram ran in 1940.
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Commercial in Confidence Expression of Interest Brief

In 1989, the Metropolitan and State
Transit Authorities were merged to form
the Public Transport Corporation (PTC),
whereby the PTC operated both the
metropolitan and regional operations
from a central structure under public
ownership. During the mid-1990’s public
transport was characterised by radical
cost cutting. The PTC’s bus business
was sold, stations were de-staffed and
conductors removed from trams, as the
PTC’s workforce decreased from 18,000
to 8,400 between 1992 and 1997.
By late 1997 the State had formed
the view that further improvement in
efficiency and service delivery could
only be achieved through radical
restructuring, and it was decided to
proceed with privatisation of the public
transport system. As the passenger
rail businesses were heavily dependent
on public funding, and would require
not only continued financial support
by detailed oversight from the State,
it was not feasible to adopt the kind
of ‘asset sale’ approach pursued
in other privatisations; therefore a
franchising approach was selected.
In 1998, the operational area of PTC was
disbanded and split into five separate
corporatised business in preparation
for privatisation. These were:
• Met Train 1 – named Bayside Trains;
• Met Train 2 – named Hillside Trains;
• Met Tram 1 – named
Swanston Trams;
• Met Tram 2 – named
Yarra Trams; and
• V/Line Passenger.
2.1.2 Franchise Arrangements
1999 – 2002 120
A competitive tender was undertaken
in 1998/99 and drew a high level
of interest from bidders around the
world. The winning franchisees were:
• National Express Group Australia
- Bayside Trains, Swanston
Trams and V/Line Passenger;
• Melbourne Transport Enterprises
(Connex) - Hillside Trains; and
• Metrolink (a partnership between
Transdev SA and Transfield
Services Ltd) - Yarra Trams 121 .
The franchising arrangements
resulted in considerable achievements
between 1999 and 2002, including:
• punctuality and reliability of
services improved overall by
an average of 35 percent;
• the number of tram and train
services running increased by
almost 10 percent (mainly through
growth in off-peak services);
• a stable industrial relations
environment was maintained, with no
services lost to industrial disputes;
• almost AUD$1.1billion worth
of new rolling stock was
delivered in service on time;
• AUD$143 million of rolling stock
refurbishments progressed on time;
• new tram platform stops were
constructed and four additional
stations were brought up
to premium standard;
29

• completion of the extension of the
Mont Albert tramline to Box Hill and
the St Albans train to Watergardens;
• customer satisfaction increased
from 61 percent before franchising
to 68 percent in 2003 (average
over all operators); and
• patronage increased at around three
percent per annum (estimated to be
about twice the rate achieved under
public operation in the 1990’s).
Despite these achievements, by 2002
the franchising arrangements were
facing challenging times. National
Express decided it would no longer
operate its franchises, leaving the
operation of its metropolitan train
and tram and V/Line Passenger
services in the hands of receivers,
and Yarra Trams and Connex were
facing severe financial difficulties.
A number of factors that contributed
to the financial position of the
public transport franchisees
have been identified:
• unrealistic assumptions by the
bidders in relation to patronage
growth and cost reduction (by far the
most significant influencing factor);
• flaws in, and disputes over, the
contractual arrangements; and
• the performance of the
recently introduced automatic
ticketing system;
Interim Operating Agreements were
agreed with Connex and Yarra Trams in
December 2002 to continue operation
of their respective networks, while
the State developed a permanent
solution to the structural and
financial problems in the industry.
At this point, the State made the
decision that the businesses would
be restructured to create a single
metropolitan train company and a single
metropolitan tram company in order
to improve fleet management, secure
economies of scale and reduce the
number and complexity of interfaces in
the industry. It was also decided that
V/Line Passenger was to be retained
under public operation from this point
while the State’s comprehensive regional
rail projects were implemented. V/
Line remains under the management
of a public entity today.
2.1.3 Franchise Arrangements
2003-2009 122
With the Interim Operating Agreements
agreed with the existing franchisees,
the State had the opportunity to
consider its options for the medium
to long term management of
metropolitan public transport.
The three options considered were:
• reverting to public ownership
and management;
• an open tender for the businesses; or
• negotiating with the existing
franchisees, Yarra Trams and Connex.
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Commercial in Confidence Expression of Interest Brief

Considering the risks and benefits
of each of these options, the State
determined that negotiating the future
operation of the combined metropolitan
tram and train networks with Connex
and Yarra Trams respectively, provided
the best outcome for the State
at that time. To ensure that value
for money was achieved from the
renegotiations, the State developed a
set of benchmarks against which the
operators’ proposals were evaluated.
The renegotiation process with Yarra
Trams and Connex was undertaken
during 2003, with the new four year
contracts signed in February 2004.
From April 2004, Connex took over
operation of Melbourne’s entire train
network and Yarra Trams took control
of the entire tram network and have
been managing them since that time.
These agreements were extended from
November 2008 to November 2009.
2.2 Victoria’s Rail Safety
Arrangements
2.2.1 Implementation of
the Rail Safety Act
In response to safety incidents in
other jurisdictions, the Department
of Transport undertook a series of
initiatives concerning rolling stock,
rail infrastructure and human factors
impacting on safety outcomes with
the overall objective of improving
rail safety in Victoria. As a result
of these initiatives, a legislative
framework was proposed to
proactively address rail safety.
The Rail Safety Act is the cornerstone
in developing a new regime for safe
rail operations in Victoria. The Act
introduces a robust safety accreditation
scheme for rail industry participants
including infrastructure managers and
operators of rolling stock who have
primary responsibility for identifying and
managing risks that have the potential
to cause major safety incidents.
The Act establishes a compulsory rail
safety accreditation scheme for rail
operators and is administered by the
Director, Public Transport Safety (‘Safety
Director’). To attain accreditation, a
rail operator must demonstrate to the
satisfaction of the Safety Director that
it has the competence and capacity
to manage the safety risks associated
with the rail operations which it
undertakes. The Franchisees must
be accredited under this scheme.
The Act also sets out a number of
duties relating to safe rail operations
which rail infrastructure managers,
rolling stock operators, rail contractors
and rail safety workers must comply
with. As ‘rail infrastructure managers’
and ‘rolling stock operators’, the
Franchisees need to meet the
obligations specified in this Act.
The important aspects
of the Act include:
• the overarching rail safety principles;
• performance-based duties for
key parties with risk management
responsibilities as part of the chain
of responsibility for rail safety;
31

• enabling the Safety Director to
take action, in consultation with
the relevant utility safety regulator,
in relation to utilities or rail
operators, where there is a threat
to the safety of the operations
of the rail operator or utility;
• the framework of accreditation
including provision for
applications, offences,
assessment criteria, conditions
and variations of accreditation
and disciplinary action; and
• provisions to facilitate the internal
and external review of decisions
of the Safety Director.
2.2.2 Public Transport
Safety Victoria
The Safety Director is an independent
statutory office established under the
Transport Act 1983. Public Transport
Safety Victoria (‘PTSV’) exists to support
the Safety Director in the performance
of the Safety Director’s functions.
The Safety Director is responsible for
administering a range of legislation
directed toward the promotion of safety
in train, tram and bus operations in
Victoria and reports directly to the
Minister for Public Transport. Subject
to some limited exceptions, the Safety
Director is not subject to the direction
and/or control of the Minister.
Under the Transport Act, the Safety
Director has the power to investigate
and report on public transport safety
matters. A public transport safety
matter is an incident involving rolling
stock, rail infrastructure, a bus or any
infrastructure used in bus operations
that has certain adverse consequences
or potential adverse consequences.
Investigations into incidents include:
• derailments of rolling stock;
• collisions (buses or rolling stock);
• a failure of any part of a
train, tram or bus;
• a fire or explosion; and
• a failure or breach of a
practice or procedure.
PTSV is the public transport safety
regulator for Victoria responsible for
regulating the safety of all train, tram
and bus operations in Victoria.
PTSV is among other things,
responsible for:
• the safety accreditation of rail and
bus operators throughout Victoria;
• monitoring the development,
implementation and continuous
improvement of operators’
safety management systems;
• monitoring compliance through
a rigorous system of compliance
inspections and audits;
• providing specialist advice
to the Minister for Public
Transport on operational and
technical safety issues;
• providing practical guidance to
public transport operators on
operational and technical matters;
• monitoring incident and
accident data; and
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Commercial in Confidence Expression of Interest Brief

• representing Victoria in the
development of national rail and
bus safety legislation that will
enable a consistent approach
to safety regulation.
2.2.3 The Office of the
Chief Investigator
The Office of the Chief Investigator is an
independent statutory office established
under the Transport Act 1983.
The principle function of the Chief
Investigator is to conduct investigations
into public transport safety matters
and report the results of those
investigations. The Transport Act
specifically provides for the conduct
of investigations involving rolling stock
and rail infrastructure by the Chief
Investigator. The primary focus of the
investigations is to determine what
factors caused the incident, rather than
apportion blame for the incident, and to
identify issues that may require review,
monitoring or further consideration.
In November 2006, a memorandum
of understanding was executed
between the Chief Investigator and
the Safety Director outlining their
respective roles, responsibilities and
the relationship between the two
offices in relation to the investigation
of rail or bus occurrences in Victoria.
2.2.4 Compliance and
Enforcement under
the Rail Safety Act
The Act substantially increases the
rigour in the accreditation regime. Rail
operators must identify and document
hazards and risks and the matter in
which those hazards and risk will be
controlled in order to prove that the rail
operator has the capacity to meet the
required level of safety performance.
Rail operators are required to set
out the way in which they propose
to manage safety in a Safety
Management System which will be
reviewed by the Safety Director.
Where the Safety Director detects a
non-compliance by the operator with
its Safety Management System, the
Safety Director will be empowered to
issue a mandatory improvement or
prohibition notice followed by a penalty
if the notice is not complied with.
The Act also contains a graduated
hierarchy of sanctions and penalties.
These sanctions and penalties are
consistent with best practice safety
regulation and are intended to
emphasise prevention, continuous
improvement and provide incentives
in relation to risk management.
The reform achieved under the Rail
Safety Act represents Victoria’s
ongoing commitment to the
continuous improvement of the
already high rail safety standards
which apply throughout the State.
33

2.2.5 A Culture of Continuous
Improvement
In recognition of the importance of a
progressive safety culture, the Rail
Safety Regulations 2006 included a
requirement for accredited rail operators
to include in their Safety Management
System methods to promote and
maintain a positive safety culture.
Recent amendments to the Act have
introduced obligations relating to ‘safety
interface agreements’, which operators
will need to comply with once the
relevant provisions come into operation
on 1 July 2010. These agreements
require operators to interface with
other parties operating on or near the
network in order to ensure that activities
conducted by these parties (either
jointly or independently) are done in
such a way that safety is not comprised.
These parties include roads and utilities
authorities and private contractors.
In addition to requiring rail operators
to address the importance of a culture
of continuous improvement, the State
has also introduced a number of
initiatives to increase awareness with
respect to safety matters. One of these
initiatives is the Don’t risk it! campaign,
a multi-pronged safety campaign to
encourage motorists, heavy vehicle
drivers and pedestrians to think about
what they are doing when approaching
and using railway crossings.
2.3 Public Transport
Strategic Planning
The State has a strong commitment
to public transport and has developed
a number of important policies and
plans to give effect to its commitment
for public transport in Victoria.
2.3.1 Government Vision
The Victorian Government’s vision for
building Victoria into a stronger more
innovative state in the future is detailed
in Growing Victoria Together.
The document identifies ten important
objectives which will be the focus for
setting priorities going forward. Public
transport relates to four of the ten
objectives and are shown following.
The four objectives relating
to public transport are:
• growing and linking all of Victoria
- details the importance of public
transport to accommodate the
current and forecast growth and
supports the State’s commitment
to increasing travel by public
transport to 20 percent of all
motorised trips by 2020;
• building friendly, confident and safe
communities - details the importance
of social inclusion, with access to
public transport a key aspect to
improving social inclusion, and issues
relating to safety on public transport;
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Commercial in Confidence Expression of Interest Brief

Figure 8: Victorian Plans and Policies that Impact Public Transport
Victorian Government Vision
Growing Victoria Together (2001)
Transport Policies and Plans
• Meeting our Transport Challenges
• Melbourne 2030 (2002)
• Linking Melbourne – Metropolitan
Transport Plan (2004)
Other Relevant Policies and Plans
• A Fairer Victoria (2007)
• Victoria’s Environmental
Sustainability Framework (2006)
• Options for Managing
Transport (2006)
• Accessible Public Transport
Action Plan 2006 – 2012 (2006)
• efficient use of natural resources
– details Victoria’s responsibility
to decrease greenhouse gas
emissions and adopt a more
sustainable lifestyle. Increasing public
transport use can assist with this
by reducing the number of vehicles
on the road and therefore reducing
greenhouse gas emissions; and
• sound financial management
– details the commitment of
the State to maintain sound
financial management and ensure
continued considered investment
in infrastructure and services.
2.3.2 Transport Plans
and Policies
The State has released four key
strategies on public transport over
the last five years, each supporting
the common goal of improving
public transport in Victoria. These
plans are outlined below however
the high level themes shared
throughout these plans are to:
• grow patronage on public
transport services by increasing
or improving the:
−− number of services provided;
−− quality of services provided;
−− network capacity to support
an increase in patronage;
−− utilisation of the network; and
−− integration of the public
transport network, across the
train, tram and bus services;
35

• enhance social inclusion by
improving accessibility for:
−− people with disabilities; and
−− the transport disadvantaged;
• provide a safe and secure network
by improving / providing:
−− safety on vehicles and
infrastructure; and
−− a safe and secure network;
• consider the environment through:
−− the promotion of public transport,
therefore moving people out of
their cars into more environmentally
friendly public transport vehicles; and
−− considering ways to decrease
the environmental impacts of
the public transport network.
Meeting our Transport Challenges
Meeting our Transport Challenges
(MOTC) was released in 2006 and
is the biggest single investment in
the transport system undertaken by
the State and is projected to inject
AUD$10.5 billion into the transport
network over the next ten year
period. Of this, AUD$7.5 billion is
to be spent on public transport.
This funding will be spread across the
train, tram, bus and road networks, with
the funding largely for infrastructure
projects. The funding allocated to
the metropolitan tram and train
operations is summarised below:
Metropolitan Trams:
• the State will commence a
procurement program to increase
the current tram fleet and improve
the operational reliability and safety
performance of the tram fleet;
• continue to improve traffic priority
to increase the average tram speed.
Actions include providing priority
treatment for trams at intersections
and approaches, increasing
segregation between trams and other
road users, undertaking track works
to allow trams to pass each other and
urban design improvements; and
• improve accessibility on trams by
continuing to upgrade to platform
tram stops and purchasing more
accessible rolling stock.
Metropolitan Trains:
• the State will provide funding to
purchase additional train rolling
stock to expand the fleet and replace
the Comeng and Hitachi trains;
• the older metropolitan train network
management systems will be
replaced with a new high quality train
control and management system
and improved train communications
systems to ensure more efficient and
safer management of the services;
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Commercial in Confidence Expression of Interest Brief

• Melbourne’s rail capacity will
be boosted by an investment of
more than AUD$2 billion over the
coming years. Improvements to
the rail network infrastructure to
increase capacity includes signalling
upgrades, stabling projects,
maintenance depot upgrades,
additional track on some lines, track
modifications, the development of
new stations in growing suburbs
and upgrading existing platforms;
• additional ‘Park & Ride’ facilities
will be developed at train stations,
to enable public transport
users to combine a private car
trip with a train ride; and
• the State will continue to
invest in safety and security
improvement projects, with a
key focus on improving safety
at level crossings, improving
safety on trains, and upgrading
the City Loop safety systems.
All Modes:
• increase the promotion of
public transport as a mode
of transport, though the
‘TravelSmart’ program; and
• improve metropolitan modal
interchanges to make public transport
a more attractive travel choice.
Other improvements being made to
the wider transport network include:
cross city bus routes (SmartBus)
and further road improvements.
Implementation of MOTC is underway
with the refurbishment of North
Melbourne station commencing in May
2007, the duplication of the Clifton Hill
track, the first phase of improvements
to the St Kilda Road tram corridor,
continued Think Tram improvements and
the roll out of four SmartBus routes.
Linking Melbourne Metropolitan
Transport Plan
In November 2004, the State released
Linking Melbourne: Metropolitan
Transport Plan, a strategic plan for
the management and development
of Melbourne’s transport system.
The Plan identified and examined
four key transport challenges: safety,
managing congestion, metropolitan
growth, and support for economic
development. For each of these
challenges, a number of strategies
have been identified which integrate
actions for roads, public transport and
non-motorised modes. The proposed
initiatives are a mixture of infrastructure,
planning and service upgrades. The
strategies relating to the metropolitan
tram and train networks include:
• improve access from the
outer suburbs via the
passenger rail network;
• improve the reliability and flow of
road based public transport;
• improve service coordination,
information and customer interface;
• ensure the safety and security
of transport infrastructure;
• provide safer and better access
to public transport; and
• promote sustainable travel through
better demand management.
37

Melbourne 2030
Melbourne 2030 details the plan
for the growth and development of
the Melbourne metropolitan area.
Melbourne’s growth is anticipated to
increase with estimates there will be
an additional 620,000 households
or one million people by 2030.
This plan details Melbourne’s urban
planning requirements to comfortably
absorb this growth and ensure
Melbourne remains a place people
enjoy to live in while protecting and
enhancing our existing suburbs.
Transport is a key part of planning
for such growth, as such; Melbourne
2030 included a section on ‘Better
Transport Links’. The transport initiatives
identified are aligned to those detailed
in MOTC and Linking Melbourne.
Accessible Public Transport Action
Plan 2006-2012
The Accessible Public Transport
Action Plan 2006-12 provides the
long term strategy for delivering
accessible bus, train, tram and taxi
services throughout Victoria.
The State’s primary priorities for the
metropolitan tram and train networks
for the six year period are to provide:
• access paths, ramps, Tactile
Ground Surface Indicators (TGSIs),
waiting areas and stairs on the
metropolitan rail network; and
• more platform stops in medians
and high use locations, TGSIs at
tram stops and at the boarding
of Melbourne trams.
2.3.3 Other Government
Strategies and Policies
A Fairer Victoria
A Fairer Victoria is about giving more
Victorians ‘a fair go’ to ensure they can
build a better future for themselves,
their families and their communities. The
core objectives of this policy are to:
• ensure access for all Victorians
to universal services;
• reduce barriers to opportunity;
• support disadvantaged groups;
• provide support for
disadvantaged places; and
• make it easier for all Victorians
to work with Government.
Transport is a key part of this policy,
with the focus on improving access
to the transport network for people
with disabilities and difficulties, and
improving services to people who may
be in transport disadvantaged areas.
Victoria’s Environmental
Sustainability Framework
The Environmental Sustainability
Framework provides direction for
government, business and the
community on including environmental
considerations in the way we work
and live. The Frameworks’ three
key strategic directions are:
• maintaining and restoring
Victoria’s natural resources;
• using Victoria’s resources
more efficiently; and
• reducing Victorians everyday
environmental impacts.
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Commercial in Confidence Expression of Interest Brief

Increasing public transport use
was highlighted as a key way
Victorians could reduce their
everyday environmental impacts.
2.4 Metropolitan
Trams Overview
In route track length, Melbourne’s
tram network is believed to be the
largest operating tram network in the
world. The tram network radiates from
central Melbourne on 29 routes and
consists of 249 kilometres of double
track. Approximately 18 percent
of the tram network is on isolated
track designated for the use of trams
only, with the remaining 82 percent
of the tram network sharing road
space with other road traffic 123 .
There are a total of 1,569 individual
tram stops, a further 210 of which
have recently been upgraded to
tram platform stops (that is, those
stops that are level access stops).
Introduced in 2001, platform stops
aim to improve accessibility as well
as loading and unloading times.
The Accessible Tram Stop Program will
construct about 350 new platform stops
across Melbourne as part of a AUD$250
million, 10 year investment in improving
public transport accessibility. This was
announced in the MOTC statement and
is supported by the Accessible Public
Transport Action Plan 2006-2012. The
upgrades have initially targeted stops
at locations with minimal impact on
traffic, for example, where trams have
designated track 124 . Currently platform
stops are located on routes 1, 6, 8,
48, 59, 70, 75, 86, 96, and 109 125 .
The most popular stop within Melbourne
city is located at Federation Square/
Flinders Street, with approximately
30,000 people using the stop each
day 126 . Melbourne’s prime tram
corridor, St Kilda Road, is possibly the
busiest tram thoroughfare in the world,
with a tram passing every minute in
each direction during peak hour.
The average distance between
tram stops throughout the
network is 260 metres.
With the platform raised about 30
centimetres from the road, platform
stops offer convenient access for
mobility impaired passengers and
comply with the Disability Standards for
Accessible Public Transport (DSAPT)
requirements. In addition, platform
stops feature wider waiting areas and
shelter from the weather and some
have real-time tram arrival information
and ticket vending machines.
39

Figure 9: Melbourne Metropolitan Tram Network
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Commercial in Confidence Expression of Interest Brief

2.4.1 Rolling Stock
There are currently 493 trams of
varying models and age. These
vehicles are listed in Table 4.
Arrangements are in place for the
leasing of five additional 5 section
Citadis trams. Transdev has sourced
these trams through the transport
authority in the French municipality
of Mulhouse (‘Sitram’). Transdev is
leasing the trams from Sitram and
then providing them to Yarra Trams
under a rental agreement. These
trams will be progressively rolled out
for operations during 2008 and will
be available to the successor tram
Franchisee until the end of 2011.
W-class trams continue to
operate on select routes on the
Melbourne network, including:
• the City Circle, a free tourist
service in the Melbourne CBD;
• route 30, a CBD service (City to
Docklands via Latrobe Street); and
• routes 78 and 79 which operate
along Church and Chapel Streets.
All W-class trams have been fitted with
modern braking systems to significantly
improve their safety. The trams have
also been fitted with pantographs and
speedometers and operate subject
to certain restrictions to ensure they
remain a safe and reliable part of
Melbourne’s transport network 127 .
The three Restaurant Trams are W
Class trams operated by the privately
run Colonial Tramcar Restaurant
Company under lease from the
Current Franchisee. Tram drivers and
routine servicing on these trams is
currently provided by the tram operator
under the conditions of the lease.
There are currently eight tram depots
situated in Melbourne. These are
located at Brunswick, Camberwell,
East Preston, Essendon, Glen Huntly,
Kew, Malvern and Southbank.
The average speed of Melbourne’s trams
is 16 kilometres per hour. During the
morning peak, the lowest tram speeds
experienced in the city centre and
through strip shopping centres are about
10–15 km/h, while tram speeds in light
rail corridors are about 25–30 km/h 128 .
41

Table 4: Tram Rolling Stock as at March 2008
Make Number Length Seating Capacity Years Delivered
Pre 1999 Rolling Stock
W-Class heritage trams 51 14.17m 48 -52 148 1925
Z-Class trams 145 16.64m 42-48 114-125 1975
A-Class trams 70 15.01m 42 117 1984/1986
B-Class trams 132 23.50m 76 182 1984/1988
Post 1999 Rolling Stock
C-Class low floor Alstom Citadis trams 36 22.98m 40 145 2001
D1 Class (three section) low floor
Siemens Combino trams
D2 Class (five section) low floor
Siemens Combino trams
Additional Trams
38 20.04m 36 140 2002
21 29.85m 52 190 2002
Restaurant Trams (W Class) 3 14.17m 36 1925
2.4.2 Timetable Hours
Melbourne’s trams are in service
between 18 to 22 hours a day,
depending on the day of the week. From
Monday to Saturday the first tram on
each route generally starts between
5:00am – 5:30am, with the last tram
of the day leaving the city between
12:00am and 12:30am. These operating
hours have recently been extended
on Friday and Saturday evenings with
the last tram leaving the city between
1:00 am and 1:25 am 129 . On Sundays
the first trams start around 6:30am
with the last trams leaving the city
between 12:00am and 12:30am.
Each week there are 31,320 scheduled
tram services in metropolitan
Melbourne; with 4,950 daily from
Monday to Thursday, 5,010 on
Friday’s, 3,770 on Saturday’s
and 2,740 on Sunday’s.
2.5 Metropolitan
Trains Overview
Melbourne’s electrified suburban
train network is extensive by world
standards. The network radiates from
central Melbourne on 15 routes and
consists of a total of 382 network route
kilometres, making it the second largest
metropolitan network in Australia 130 .
The City Loop, or Melbourne’s
Underground Rail Loop, is central
to the metropolitan train network,
enabling a steady flow of trains
through the Central Business District
(CBD), and providing passengers
with the convenience of accessing
one of five central train stations.
Completed in 1985, the city loop has
four single track tunnels, totalling
17 kilometres in combined length.
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Commercial in Confidence Expression of Interest Brief

Figure 10: Melbourne Metropolitan Train Network
43

Each tunnel is independent with no
cross connections between loops,
with each being dedicated to a group
of suburban lines 131 . Twenty years
after completion, the City Loop
tunnel is now beginning to approach
capacity, and the State is currently
planning to address the issue 132 .
There are a total of 213 train stations
serviced within the metropolitan
area, each typically with two, three
or four platforms. A small number
of stations have more than four
platforms, including Southern Cross
Station with six metropolitan platforms
and additional platforms for regional
services, and Flinders Street Station
with 12 platforms predominantly
used for metropolitan services. There
are a total of 471 individual train
platforms in the metropolitan area.
72 metropolitan train stations are
classified as ‘Premium Stations’, with
plans to upgrade a further three stations
to premium status, as per the transport
and liveability statement in Meeting Our
Transport Challenges. Premium stations
are staffed from the first train of the day
to the last train seven days a week. Each
premium station has a customer service
centre, where passengers can ask staff
questions and obtain timetables and
change for the vending machines and
payphones as well as purchase tickets.
Most premium stations also provide
improved customer facilities, such as
enclosed waiting areas and toilets. Both
premium and standard stations have
closed-circuit television cameras on
platforms and at car park entrances 133 .
The average distance between
metropolitan train stations is
2.5 kilometres. Flinders Street
Station is the busiest station in
Victoria, with more than 110,000
passengers passing through the
station on an average weekday 134 .
While line speed is 80 kilometres per
hour, with the exception of the outer
areas between Newport to Werribee
and Dandenong to Pakenham which
is 115 kilometres per hour 135 , the
average train speed within metropolitan
Melbourne is currently 35 kilometres
per hour 136 . The current speed has
declined in the last few years due to
increased operational constraints.
2.5.1 Rolling Stock
There are currently 331 three car
units of varying models and age
listed in Table 5 below. During peak
periods the three car units are
always coupled and run as six-car
sets. With current patronage growth,
off-peak services are increasingly
being run with six-car sets as well.
The State has contracted with Alstom
for the supply of 18 additional 6 car sets
of X’trapolis trains with an option for up
to 20 further trains. Delivery is expected
in the early part of the new franchise.
All Melbourne trains are fully compliant
with the Disability Standards for
Accessible Public Transport (DSAPT)
requirements, with the exception of
the old Hitachi trains, which have
a number of minor deficiencies (no
Passenger Information Display, no
communication button, or allocated
space in carriages). Provided all
Hitachi trains are replaced by 2032,
the State is well within the required
DDA timelines for suburban trains 137 .
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Commercial in Confidence Expression of Interest Brief

Table 5: Train Rolling Stock as at June 2007
Make Number of 3 car units Years delivered
Pre 1999 Rolling Stock
Comeng 187 Between 1982 – 1989
Hitachi 14 Remaining from the 118 three car
units delivered between 1973 – 1981
Post 1999 Rolling Stock
Siemens Nexas 72 Between 2003 – 2006
Alstom X’trapolis 58 Between 2002 and 2004
2.5.2 Timetable Hours
Melbourne’s trains are in service
between 19 to 22 hours a day,
depending on the day of the week. From
Monday to Saturday the first train on
each route generally starts between
4:15am – 5:05am, with the last train
of the day leaving the city between
12:00am and 12:15am. These operating
hours have recently been extended
on Friday and Saturday evenings with
the last train leaving the city between
1:00 am and 1:15 am 139 . On Sundays
the first trains start around 6:50am
with the last trains leaving the city
between 11:45pm and 12:15am.
Each week there are currently 12,282
scheduled train services in metropolitan
Melbourne; with 1,916 daily from
Monday to Thursday, 1,944 on Fridays,
1,502 on Saturdays and 1,172 on
Sundays. On public holidays there
are 1,476 scheduled services 140 .
2.6 Melbourne Public
Transport Fares
and Ticketing
Melbourne has a multi-modal public
transport ticketing system, which
operates on train, tram and bus services
in the metropolitan area. The existing
ticketing system, known as Metcard, is
an automated ticketing system which
uses electronically encoded tickets.
Made of stiff card with a magnetic
stripe, Metcards were rolled out
between 1996 and 1998 and replaced
the previous paper tickets. The ticket
type is pre-printed on the ticket when it
is encoded. Once purchased, Metcards
are validated by putting the card
through a validator, located on all trams,
metropolitan buses and at train stations.
During validation, the expiry details are
printed on the back of the Metcard 141 .
The public transport network is
divided into two zones, referred to
as zone 1 and zone 2. Most fares
are based on the zones in which
the travel occurs, with passengers
required to have a valid ticket for each
zone they travel in. When travelling
in a zone boundary overlap however,
passengers are only required to have
a valid ticket for one of the zones.
45

2.6.1 Metcard Fares
A range of tickets are available
including a city-saver, two hour, daily,
weekly, monthly and yearly for all
combinations of zones, at both full-fare
and concession rates. These fares
are set by the State and are subject
to annual Consumer Price Index (CPI)
increases. The 2008 Metcard fares
are listed in Table 6 and Table 7.
Concession travel is available to
all passengers aged under 15
and those that carry an approved
Victorian Concession Card. Eligible
concession cards include:
• Victorian Public Transport
Primary and Secondary
Student Concession Card;
• Victorian Public Transport Tertiary
Student Concession Card;
• Australian Pensioner
Concession Card;
• Victorian Seniors Card;
• Health Care Card; and
• War Veterans/War Widows
Concession Card 142 .
In 2006/07 concession tickets
accounted for 28 percent of
metropolitan farebox revenue and 52
percent of total tickets sales 143 . Full
fare tickets account for the balance.
In 2006/07, Zone 1 Metcards accounted
for 49 percent of total revenue, while
zone 1+2 Metcards accounted for
34 percent of total revenue. The
balance was attributed to 14 percent
Zone 2, 1.5 percent to city saver
and 1.5 percent to Sunday Saver.
The daily Metcard is currently the most
purchased ticket, with approximately
30 percent of public transport
users purchasing dailies, however
its share is decreasing, with more
customers increasingly purchasing
the discounted multi-trip Metcards,
such as 10x2 hour and 5xdaily 145 .
The State recently introduced the
Early Bird Metcard ticket which offers
commuters free inbound, outbound
or between station travel on the
train network if they complete their
journey prior to 7am on weekdays.
The objective of the Early Bird Ticket
is to encourage more public transport
users to use non-peak services to
improve capacity during peak periods.
The Early Bird Metcard will be
available for at least two years and
will be reviewed as the Government’s
order of 18 new six-car trains begin
service from late 2009 146 .
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Commercial in Confidence Expression of Interest Brief

Table 6: Metcard Fares Effective until 31 December 2008
Zone 1 Zone 2 Zone 1 + 2
Full Fare Concession Full Fare Concession Full Fare Concession
2 hour $3.50 $2.20 $2.70 $1.60 $5.50 $3.10
Daily $6.50 $3.50 $4.60 $2.60 $10.10 $5.30
10 x 2 hour $28.00 $14.00 $19.20 $9.60 $47.40 $23.70
5 x Daily $28.00 $14.00 $19.20 $9.60 $47.40 $23.70
Weekly $28.00 $14.00 $19.20 $9.60 $47.40 $23.70
Monthly $104.40 $52.50 $70.00 $35.00 $161.00 $80.50
Yearly $1,117.00 - $748.00 - $1,722.00 -
Table 7: Other Metcard Fares effective until 31 December 2008
Zone 1 Zone 2 Zone 1 + 2
Full Fare Concession Full Fare Concession Full Fare Concession
Off Peak Daily - - - - $9.50 $4.75
Seniors Daily
(zones 1+2)
- - - - - $3.30
Sunday Saver - - - - $2.90 -
10 x Early Bird* $0
5 x Weekend Daily - - - - $14.50 -
Group Traveller - - - - - $27.20
City Saver $2.60 $1.50 Available within City Saver zone only
City Saver x 10 $20.80 $10.40 Available within City Saver zone only
Note: People travelling on the train network will travel for free when they use the Early Bird fare -
to avail themselves of this fare, passengers must complete their journey by 7am.
47

Figure 11: Proportion of Metropolitan Full Fare and
Concession Revenue and Ticket Sales
Farebox Revenue
Metcard Sales
Concession
28%
Full Fare
28%
Full Fare
48%
Concession
52%
A vast retail network has been
developed to enable Metcards to be
purchased prior to travel. The existing
retail network has approximately 900
retailers, for example convenience
stores, newsagents and other retail
outlets strategically distributed
throughout metropolitan Melbourne.
In addition to the retail network,
tickets can be pre-purchased from:
• customer service centres at
staffed train stations;
• Metcard ticket machines at train
stations and tram super stops;
• the MetShop, located in
the Town Hall in Melbourne
Central Business District;
If passengers do not pre-purchase
their ticket prior to boarding, a
limited range of tickets are available
for purchase from coin only ticket
vending machines on board trams,
or from the driver on buses.
All revenue collected from the sale of
Metcards is currently pooled into the
‘Metropolitan Farebox’, and allocated
between the train, tram and bus.
V/Line Passenger and regional bus
services currently operate separate
ticketing systems, with tickets either
machine printed or hand written by
staff. Revenue from these tickets
is retained by V/Line Passenger or
the regional bus company and is
outside the ‘Metropolitan Farebox’.
• the internet, via the Metlink website;
• the Metcard telephone helpline; and
• commuter clubs, which enable
registered organisations to
purchase yearly tickets for their
staff at a discounted rate.
48
Commercial in Confidence Expression of Interest Brief

Figure 12: Proportion of Revenue by zone 2006/07 144
100%
14
1.5 1.5 100
Proportion of revenue by zone
90%
80%
70%
60%
50%
40%
30%
20%
49
34
10%
0%
Zone 1 Zone 1/2 Zone 2 Sunday
Saver
City
Saver
Total
Ticket Type
Figure 13: Metcard Sales Revenue by Channel 2006/07 147
100%
90%
10
8
3
3 100
Proportion of Metcard Revenue
80%
70%
60%
50%
40%
30%
20%
57
19
10%
0%
Train Station
Retail Agent
Bus
Tram
Commuter
Bulk Agent
Total
Metcard Sales Channel
49

2.6.2 Existing Ticketing System
OneLink Transit Systems Pty Ltd
(OneLink), a consortium consisting
of ERG Australia (Perth), Fujitsu
Australia, Mayne Nickless (Armaguard)
and the National Australia Bank were
awarded the contract to design, install
and operate the Metcard ticketing
system in 1993. Onelink currently
hold the contract for the current
ticketing system and are responsible
for ensuring the ticketing system:
• operates at the agreed
level of availability;
• provides a wide distribution
of tickets; and
• accounts for all revenue collected
from the train stations and
ticket vending machines.
The OneLink Contract was due to expire
in March 2007 but has been extended
for a period of up to five years to enable
sufficient time for the roll-out of the
new ticketing system. Management
of the OneLink Contract transferred
to the Transport Ticketing Authority in
2007, prior to this, Metlink managed
the contract on behalf of the State.
The performance of the existing
ticketing system is monitored and
reported on as part of the OneLink
contract. The Customer Defined
Availability targets represent the
minimum levels of acceptable availability
and performance of the ticketing
system and allow for specified levels
of non-availability due to maintenance,
servicing and breakdowns.
The status of ticketing equipment
at railway stations is automatically
monitored via communication lines
to OneLink, therefore all failures are
known immediately and repairs or
services can be undertaken rapidly.
Mobile equipment on-board trams and
buses do not have the performance
communication link to OneLink,
therefore failures are not known as
readily, and as the vehicle must be made
available to OneLink for repairs, the
repairs are not performed as rapidly 148 .
The performance of the ticketing
system, as well as the train, tram and
bus operators is reported in ‘Track
Record’, a monthly bulletin and quarterly
publication produced by DOT to report
on the performance of Victoria’s train,
tram and bus services. The bulletin
is available on the DOT website each
month, with a quarterly publication
released at the end of each quarter.
50
Commercial in Confidence Expression of Interest Brief

Table 8: Customer Defined Availability Targets for Ticketing
Equipment - Railway Stations (%) 07/2004 – 06/2007 149
Device Target H2 04 H1 05 H2 05 H1 06 H2 06 H1 07
Vending Machines 98.26 99.0 98.7 98.7 98.7 98.7 98.5
Validators 99.47 99.7 99.5 99.5 99.6 99.5 99.4
Table 9: Customer Defined Availability Targets for Mobile
Ticketing Equipment (%) 07/2004 – 06/2007 150
Mode Device H2 04 H1 05 H2 05 H1 06 H2 06 H1 07
Tram Vending Machines 94.7 93.3 93.2 92.6 91.8 90.6
Validators 96.7 96.3 96.5 98.2 98.0 97.8
Bus Vending Machines 99.7 99.7 99.7 99.7 99.7 99.6
Validators 99.9 99.9 99.8 99.8 99.8 99.5
2.6.3 New Ticketing System
The new ticketing solution, referred
to as ‘myki’ (pronounced my key), will
be a fully integrated system which
incorporates all ticket types, zones,
fares and concessions across Victoria.
It will replace both Metcard and current
V/Line Passenger ticketing as well
as the current regional bus ticketing
in a number of regional towns.
The Transport Ticketing Authority
(TTA) is the State body responsible
for the design and delivery of myki.
In July 2005, TTA awarded Kamco,
the Keane Australia Micropayment
Consortium Pty Ltd, the contract to
design, deliver and manage the new
public transport ticketing solution.
In developing myki, TTA is working
closely with the incumbent tram and
train operators as well as V/Line, the
Bus Association and Metlink to ensure
a smooth introduction of the system.
The current expected delivery date for
myki has been projected to be in 2010.
2.7 Patronage
2.7.1 Patronage Trends
In the 2006/07 financial year, 418.5
million trips were made on Melbourne’s
metropolitan public transport; 333.5
million of these were on the tram and
train. The metropolitan train business
has experienced the greatest rate of
patronage growth increasing by 23
percent over the two years to 2006/07,
equivalent to 11 percent per annum 153 .
This is quite dramatic growth, with long
term patronage growth averaging 1.8
percent per annum 154 . From 1998/99 to
2006/07 metropolitan train patronage
increased by more than 50 percent 155 .
In the two years to 2006/07 patronage
on the metropolitan trams increased
by almost seven percent. Over the
12 months to December 2007, tram
patronage increased by 5.5 percent.
Tram patronage is increasing at
a higher rate than the compound
annual growth rate of three percent
over the past ten years 156 .
51

Patronage on metropolitan buses has
remained fairly stable over the last
seven years, however the new Smartbus
routes have contributed to bus
patronage increasing by six percent over
the 12 months to December 2007 157 .
Patronage increases across the
metropolitan public transport
network have occurred on both
peak and non-peak services.
A number of factors are believed
to influence this increased growth
in patronage including:
higher petrol prices: petrol prices have
steadily increased in Melbourne from
an average of 94.2 cents per litre in
January 2005 159 to an average of 140.5
cents per litre in January 2008 160 ;
• increased population growth: over
the ten years to 2007, the population
in Melbourne has steadily increased
by at least one percent per annum;
• increased employment growth
in Melbourne CBD: over the six
years to 2006, total employment in
Melbourne CBD has increased by 18
percent, of which 10 percent was
during the two years to 2006 161 ;
• increased interest rates:
household budgets have been
tightened as a result of increased
mortgage repayments, with the
Reserve Bank of Australia increasing
official interest rates incrementally
from 4.25 percent in May 2002 to
7.25 percent in March 2008 162 ;
• increased cost of long-term
parking in the CBD: in 2006
the State introduced a Long
Stay Car Park Levy of AUD$400
per annum, which increased to
AUD$800 per annum in 2007,
to encourage commuters who
frequently drive to the city and park
all day to consider other options,
such as public transport 163 ;
• increasing environmental
awareness in the community:
increased publicity and commentary
on the issues of global warming
and climate change has increased
awareness of our environmental
footprint and the impact of individuals
on the environment. This awareness
is encouraging people to select
more sustainable travel behaviours,
such as walking, cycling and public
transport. The State is assisting
with this through its TravelSmart
program which aims to make people
more aware of their public transport
options, the benefits of these options
and how best to use them 164 ;
• the abolition of metropolitan
zone 3 ticketing in March 2007:
introduced as part of the State’s
‘Fare Go Package’, the phasing
out of zone 3 ticketing reduced
metropolitan public transport ticket
prices by up to 50 percent 165 ;
52
Commercial in Confidence Expression of Interest Brief

Table 10: Metropolitan Melbourne Public Transport Patronage 1999/00 – 2006/07 158
millions 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05* 2005/06^ 2006/07
Tram 127.3 129.4 131.9 134.7 135.9 145.3 149.6 154.9
Train 124.2 130.3 131.8 133.8 134.9 145.1 159.1 178.6
Bus** 79.1 85.0
Total 387.8 418.5
* Patronage estimates from 2004/05 are based on the new measurement methodology, which involves factoring
up ticket validations from the Automatic Ticketing System database.
**The methodology for calculating patronage on Metropolitan Buses changed in 2005/06. Results prior to this
are inconsistent with trends and have been excluded.
^ Patronage figures exclude the impact of the Commonwealth Games.
• free travel on metropolitan
public transport and some regional
services for Senior Citizens on
Sundays from August 2006;
• additional peak and shoulder
peak train services: additional
services were included in the 2007
timetable to increase capacity and
alleviate the overcrowding occurring
during the peak services; and
• increased operating hours: in
2007, tram and train services were
extended by one hour on Friday
and Saturday evenings, providing
more services to public transport
users and offering a viable option
to taxis or the Nightrider bus.
It is anticipated that these factors will
continue to influence public transport
patronage, with patronage forecast
to increase again in 2007/08.
Should petrol prices decrease, train
patronage forecasts suggests growth
will continue at 3.5 percent per
annum in the short to mid term.
Over the last few years patronage
growth has exceeded forecasts,
therefore to ensure the forecast
provides a better indication of expected
patronage; it is periodically revised.
The forecasts provided in Table 11 are
indicative only and will be periodically
revised to incorporate current trends.
53

Total Annual Patronage (thousan
300
250
200
150
100
50
Train & Tram Patronage
100
80
60
40
20
verage Pump Price (cents)
0
0
2000 2001 2002 2003 2004 2005 2006 2007
Figure 14: Tram and Train Patronage Growth Plotted with Changes to Fuel Price and Interest Rates Financial 1999/00 Year – 2006/07
166 167
400
Fuel Price and Rail Patronage Trend
140
400
Interest Rates and Rail Patronage Trend
7%
Total Annual Patronage (thousands)
350
300
250
200
150
100
50
Fuel Prices
Train & Tram Patronage
120
100
80
60
40
20
Average Pump Price (cents)
Total Annual Patronage (thousands)
350
300
250
200
150
100
50
Train & Tram Patronage
Interest Rates
6%
5%
4%
3%
2%
1%
Interest Rates
0
2000 2001 2002 2003 2004
2005 2006 2007
0
0
2000 2001 2002 2003 2004
2005 2006 2007
0%
Financial Year
Financial Year
Interest Rates and Rail Patronage Trend
400
7%
Table 11: Metropolitan Public Transport Patronage Forecasts 2007/08 to 2009/2010 168
350
Interest Rates
6%
Total Annual Patronage (thousands)
300
2006/07 2007/08 2008/09* 2009/10* 2010/2011*
Tram250
154.9 161.1 167.5 174.6 181.9
4%
Train
200 Train & 178.6 Tram Patronage 198.2 218 235.2 253.8
Bus 85.0 89.2 93.7 3%
96.9 100.3
150
Total metro 418.5 448.2 478.9 506.4 535.7
2%
100
* Long run growth rates are applied to the previous year’s forecast to calculate the forecast figures. The long
run growth 50 rates represent the average annual growth expected 1% over a five year period and will change annually.
Growth rates in individual years may be higher or lower than the average. Long run growth rates changed in March 2008.
0
0%
2000 2001 2002 2003 2004 2005 2006 2007
5%
Interest Rates
Financial Year
54
Commercial in Confidence Expression of Interest Brief

2.7.2 Impact of Patronage
Increase
The rapid patronage growth on
the metropolitan train network has
resulted in increased overcrowding,
particularly in the morning peak
period (the period between 7:01
and 9:30 Monday to Friday) when
the network is at its busiest.
The extent of the overcrowding on the
metropolitan train network was shown in
the half yearly Load Survey - performed
to monitor overcrowding. Under the
existing franchise agreement, a load
breach is considered to occur if during
a given hour, the average number of
passengers per train exceeds 798.
Crowding levels are measured at the
stations on the fringes of the CBD,
where trains are at their most crowded
heading into or out of the city 171 . The
October 2007 survey identified 28
breaches, with a further nine loads
within five percent of the Average
Maximum Capacity 169 . This compares
to just five breaches in 2004 170 .
A new timetable was introduced in
September 2007 which may account
for part of the drop observed from
the survey conducted in May 2007.
Metropolitan trams have not experienced
the same level of patronage growth as
the metropolitan trains over the last
few years and therefore have not had
the same levels of overcrowding. The
impact of the increased patronage
has however, started to increase
overcrowding with the last annual
services survey (undertaken in October
2007) showing an increase in the
number of services with average loads
above the maximum desired capacity 172 .
In 2007 there were five routes running
above the average maximum capacity
at some part of the day, with another
four routes within 10 percent of
the average maximum capacity.
Additional bus and train services are
being incorporated into the timetable
to reduce the number of load standard
breaches - as illustrated by the increase
in total scheduled kilometres.
Figure 15: Metropolitan Trains Rolling Hour Loads Above
Desired Maximum 2001-2007, Peak Services Only
40
Rolling hour loads above desired maximum
35
30
25
20
15
10
5
PM Peak
AM Peak
5 6
7 7
12
23
36
28
0
2001
2002
2003 2004
2005 2006 May-07 Oct-07
Year
55

Table 12: Metropolitan Melbourne Public Transport Total Scheduled Kilometres 1999/00 – 2007/08 (millions) 173
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Target
Tram 22.2 21.3* 21.6 22.0 22.5 21.9 23.1 23.1 23.1
Train 15.7 16.3 16.6 16.8 17.0 16.7 17.2 17.2 17.8
Bus 68.4 69.2 70.4 73.5 74.9 75.2 76.9 83.6 92.2
* Note: the reduction in kilometres was due to an amalgamation of routes.
2.8 Revenue
2.8.1 Metropolitan
Farebox Revenue
All revenue collected from the sale
of Metcards is currently pooled into
the ‘Metropolitan Farebox’, and once
expenses have been deducted, the
net farebox is allocated between
the metropolitan train, tram and
bus organisations on a fixed
revenue split. The split under the
current arrangements, as detailed
in the current Revenue Sharing
Agreement, is 40/40/20. The 20
percent allocated for bus, is paid
to the State, as it has separate
contracts with each bus operator.
Items that are currently deducted
from the gross metropolitan Farebox
include amounts collected from
the sale of special event tickets,
including Spring Racing Carnival
tickets or Melbourne Show Tickets
and; service payments to V/Line
Passenger for the sale of Metcards
from V/Line Passenger stations.
The net metropolitan Farebox
and the division between each of
the operators from 2004/05 to
2006/07 are provided in Table 13.
Total Farebox revenue increased
by 24 percent over the period
from 2004/05 to 2006/07 despite
the removal of the zone 3 fares.
This increase is attributable to a
number of factors including:
• the annual CPI price
increases on the tickets;
• increased patronage; and
• decreased fare evasion.
56
Commercial in Confidence Expression of Interest Brief

Fare Evasion
Fare evasion on Melbourne’s public
transport costs millions every year. With
the roll-out of the current metropolitan
ticketing system in 1996-98, it was
envisaged the public transport network,
particularly the metropolitan train
network, would become more secure
and reduce fare evasion. Validator
gates were introduced at a number of
suburban train stations, positioned at
the entry and exit points of stations.
When closed, the gates require a valid
Metcard to open. Access to all CBD
stations as well as some of the larger
suburban stations have been closed.
While metropolitan trams use the same
ticketing system, it is fundamentally
an open tram system that does not
require a valid ticket to enable entry
or exit of the vehicle. In the absence
of staff on board, the purchase or
validation of tickets onboard requires
honesty, education and persuasion.
To monitor and estimate the rate of
fare evasion in the metropolitan public
transport network, Metlink, on behalf
of the State, undertakes a survey of
approximately 35,000 passengers over
two six month periods. The first half
(H1) captures the period from January
to June, while the second half (H2)
the period from July to December.
While fare evasion in Melbourne
costs millions every year, strategies
implemented by the State (in conjunction
with Metlink and the train, tram and
bus operators) to reduce fare evasion
are working, with the estimated cost
of fare evasion reducing from about
AUD$55 million in 2005/06 to AUD$48
million in 2006/07 175 . The Metlink
surveys showed that total fare evasion
on public transport fell from 13.6
percent in the second half of 2005, to
10.9 percent in the first half of 2007.
The rate of fare evasion on trains is
improving, consistently decreasing over
the period the fare evasion surveys
have been conducted from 13.5
percent in the first half of 2005, to 9.6
percent in the second half of 2006.
Fare evasion on trains did peak again
however, to 13.4 percent in the first
half of 2007 176 . This may have been
due to the increased congestion on
trains leading to difficulties associated
with checking tickets, or due to
customer dissatisfaction with service
delivery during this period stemming
from increased cancellations resulting
from rolling stock brake failures.
57

Table 13: Metropolitan Farebox Revenue 2004/05 – 2006/07 174
Financial Year Metropolitan Farebox Metropolitan
Trams Share
$ (millions) % Growth
Metropolitan
Trains Share
2004/05 $372M $149M $149M $74M
2005/06 $406M 9% $162M $162M $82M
2006/07 $462M 14% $185M $185M $92M
All amounts exclude GST.
State’s Share
177 178
Table 14: Estimated Metropolitan Fare Evasion Levels 2005 – 2007
H1 05 H2 05 H1 06 H2 06 H1 07
Tram 19.4% 15.3% 13.2% 11.1% 9.2%
Train 13.5% 10.8% 10.6% 9.6% 13.4%
Bus - 16.1% 9.9% 8.2% 8.1%
Metropolitan Network* - 13.6% 11.5% 9.9% 10.9%
*The fare evasion levels for the metropolitan network are the weighted average from the train, tram and bus results.
The reductions in fare evasion
are believed to be the result of a
combination of factors including:
• the Metlink advertising campaigns
encouraging validation and the
pre-purchase of Metcards;
• additional staff available at
premium stations and platform
stops to offer assistance;
• design changes at key stations,
making it easier to purchase
tickets and making it harder
to avoid validating;
• a change in passenger behaviour,
moving to an increase in prepurchased
tickets and increasing
popularity of the multi-use ‘value’
tickets, which have been influenced
by advertising campaigns focusing
on purchasing behaviours; and
Authorised Officers (AO’s) are employed
by both the tram and train operators
to conduct ticket inspections. AO’s
have the authority to ask to see a
passenger’s ticket, while they are
travelling on the train or tram and after
they have just left the vehicle or the
paid area of a station. AO’s work across
the entire network, from the first to
the last service seven days a week.
AO’s are authorised under the Transport
Act to detect infringements and report
them to the State, however being
employees of a private organisation,
they are not able to directly issue fines.
Where an infringement is detected,
the AO records the passenger’s details
with the details of the infringement
in a Report of Non Compliance;
which is submitted to the State who
determines whether a fine is to be
issued. Should a fine be issued, the
State contacts the passenger via mail.
• the role of the Authorised Officers in
actively discouraging fare evasion.
58
Commercial in Confidence Expression of Interest Brief

2.9 Performance
2.9.1 Punctuality and Reliability
The performance of the metropolitan
trains in terms of punctuality and
reliability has been impacted by
a number of key factors over
the last few years, such as:
• in 2004/05 both reliability and
punctuality were impacted by a driver
shortage and problems experienced
with new rolling stock which caused
delays and cancellations, resulting
in an average of 1.3 percent of
scheduled services cancelled;
• in 2006/07 a decline in reliability
predominantly due to the temporary
withdrawal of 31 Siemens trains
from service due to a fault with the
braking system and the temporary
speed restrictions imposed on the
impacted trains once they returned
to service. Once these trains were
operational again, reliability improved
to 99.3 percent in the June quarter;
• the larger than anticipated growth in
patronage over the last three years,
is believed to have increased dwell
times. With more time required to
load and unload passengers, the
punctuality of the services has
deteriorated over the period; and
• construction work at Flinders
Street Station and the complete
remodelling of Southern Cross
Station during the period
2004-2007 also had considerable
impact on the ability to deliver
services on time. Other projects
undertaken on the infrastructure
also impacted punctuality.
The metropolitan trams have performed
consistently well since management of
the entire network was amalgamated
in 2004. In 2006/07, only 0.2 percent
of scheduled services were cancelled,
with 99.8 percent running as scheduled.
When measured as an average across
the whole tram journey, punctuality was
at 82.7 percent only slightly dropping
from the 82.9 percent in 2005/06.
Despite the impacts of increased
road congestion and patronage, the
metropolitan trams have consistently
performed at least 30 percent better
than when managed by the Public
Transport Corporation in 1998 179 .
59

Table 15: Proportion of Scheduled Services Delivered 1999/00 – 2006/07 180
1999/00* 2000/01* 2001/02* 2002/03 2003/04 2004/05 2005/06 2006/07
Tram Actual 99.3 99.3 98.9 99.6 99.6 99.4 99.7 99.8
Train Actual 99.6 99.4 99.2 99.6 98.8 98.7 99.1 98.9
* Results shown are the averaged performance of the two operators.
Table 16: Proportion of Tram and Train Services Arriving within the Required Timeframe 1999/00 – 2006/07 181
99/00* 00/01* 01/02* 02/03 03/04 04/05 05/06 06/07
Tram 1 Actual 90.8 92.0 94.8 91.2 93.5
Tram 2 Actual 75.0 75.0 74.7 68.1 67.6
Tram 3 82.0- 82.0- 82.0-
Train^ Actual 96.5 96.6 96.2 96.9 95.9 93.9 93.0 92.2
^ Train services arriving at destination no more than 59 seconds before and less than five minutes 59 seconds after timetable.
^^ During the first franchise period, tram timeliness was assessed at two points: Services departing a monitoring point (Tram1) no more than 59 seconds
before and less than 5 minutes 59 seconds after timetable at the 2nd monitoring point, (Tram2) and the 2nd last monitoring point. The results for
these periods are presented in that order. From the 2004 Franchise (Tram 3), the measurement of timeliness was changed to the average of tram
services departing the 2nd, 3rd and 4th monitoring points no more than 59 seconds before, and less than 5 minutes 59 seconds after timetable.
* Results shown are the averaged performance of the two operators.
2.9.2 Customer Satisfaction
To measure how satisfied public
transport customers are with the service
provided by the transport operators,
the Director of Public Transport
commissions a customer satisfaction
survey every month. Interviewees are
randomly selected in areas where the
train, tram, bus and coach services
operate and are asked to indicate
their usual public transport usage and
their level of satisfaction with specific
aspects of public transport. Interviewees
are asked questions relating to:
• service delivery;
• railway stations or tram or bus stops;
• passenger comfort;
• ticketing;
• information services
(including timetables);
• personal safety;
• value for money; and
• staff service.
60
Commercial in Confidence Expression of Interest Brief

Figure 16: Metropolitan Trains Customer Satisfaction and Number of Load Breaches
Metropolitan Train Punctuality
98
97
96
95
94
93
92
91
90
89
Train Punctuality
Customer
Satisfaction
72
70
68
66
64
62
60
58
Metropolitan Train Customer Satisfaction (%)
2000 2001 2002 2003 2004
2005 2006 2007
Financial Year
Overall customer satisfaction on the
metropolitan trains has been steadily
decreasing since 2002/03. The decline
from 71.3 percent in 2002/03 to 62.5
percent in 2006/07 is attributable
to lower than expected operational
performance (reliability and punctuality)
and overcrowding on some peak
services. Steps have been taken to
reduce overcrowding on peak services,
with additional peak and shoulder peak
train services, as well as extending
Friday and Saturday night services
to ease some of the overcrowding.
Overall customer satisfaction on the
metropolitan trams has remained
steady, reflecting the consistent
operational performance. To improve
customer satisfaction, a number of
customer focussed activities were rolled
out in 2006/07 by the tram operator.
Table 17: Metropolitan Trams and Trains Customer Satisfaction Index 1999/00 – 2006/07 182
99/00* 00/01* 01/02* 02/03 03/04 04/05 05/06** 06/07
Tram Actual 69.4 69.6 71.2 71.6 70.6 71.2 70.3 70.5
Train Actual 70.4 69.4 71.2 71.3 68.8 65.4 64.4 62.5
* Results shown are the averaged performance of the two train operators or two tram operators
** The 2005/06 targets were stretch targets, which were not achieved.
61

2.9.3 ‘Track Record’
Overall performance of the Victorian
Public Transport Network, as well
as that of each of the operators,
including the metropolitan trains and
trams, is provided in the Department
of Transport produced report ‘Track
Record’. Released quarterly since
August 1999, ‘Track Record’ provides
a review of the performance of
Victoria’s Public Transport Services
and covers punctuality and reliability,
payments, customer satisfaction and
performance of the Automatic Ticketing
System. Current and previous editions
of Track Record are available on
DOT’s website, www.doi.vic.gov.au.
2.10 Strategies to Improve
Performance
2.10.1 Metropolitan Trams
The performance of the metropolitan
trams has also been impacted by a
number of factors, including route
amalgamations, extensions to
existing services, patronage growth
and the increase in road congestion
throughout Melbourne. Patronage
growth have placed pressure on
tram punctuality and resulted in
overcrowding on some peak services.
Increased traffic congestion means
that the average speeds of trams
is approximately 16 kilometres per
hour through the network, with 82
percent of the tram route sharing
the road with other traffic.
To reduce the impact of these factors
on tram performance and customer
satisfaction, the State, in collaboration
with the current franchisee and other
stakeholders, is considering a number of
ways to improve network performance.
A joint initiative, called the Think
Tram Program was implemented
in 2004 in an attempt to increase
average tram speeds and improve
reliability, accessibility and safety
along the busiest parts of the tram
network 183 . Some activities undertaken
as part of Think Tram are:
• a multi media campaign to educate
motorists about requirements
when driving with trams;
• altering intersection signaling to
prioritise trams, with more than
200 sets of traffic signals already
adjusted to provide priority to trams;
• introducing right turn bans and
traffic light sequence changes;
• installing physical barriers
to prevent private vehicles
encroaching on tracks;
• improving stops to reduce
passenger loading times 184 ;
• reviewing motorists’ responsibilities
when driving with trams and
developing new ways to ensure
motorists act safely around
trams and have clear indications
of when they can and cannot
drive on tram tracks; and
62
Commercial in Confidence Expression of Interest Brief

• improving communication
links between VicRoads traffic
management centre and the
Metropolitan Trams control centre 185 .
Other initiatives that have been
developed and recently implemented
to improve customer satisfaction in the
Melbourne tram operations include:
• introducing Friday and Saturday
late night tram services on all city
and Chapel street routes and two
additional Sunday morning trams
between the city and St Kilda; and
• a marketing campaign promoting
a friendlier environment on trams
and at trams stops and encouraging
the reporting of anti-social
behaviour, vandalism and graffiti.
Additional uniformed and plain
clothes police travelled on trams
during the marketing campaign.
The current focus to improve
performance is on implementing
initiatives that will:
• improve fleet reliability;
• reduce the number of services
on routes considered to
be over-serviced; and
• improve fleet utilisation.
In addition, to ease overcrowding
on tram services, five new highcapacity,
low floor trams have been
leased from the town of Mulhouse in
France by Yarra Trams, through its
French shareholder Transdev, which
operates Mulhouse’s tram network.
All five are expected to be in service
by September 2008, with the lease
expiring in December 2011. Once the
trams (which are manufactured by
Alstom) arrive in Melbourne, minor
modifications will be made to make them
suitable for Melbourne’s conditions, for
example, boosting the air-conditioning.
2.10.2 Metropolitan Trains
The State and the current franchisee are
working closely to optimise performance
within the existing network in response
to increasing demand. A number of
responses have been identified to ease
the immediate problems, while a longer
term strategy is being developed.
Responses to ease the
immediate problems
Given the long lead time to implement
any substantial changes, (such as
introducing additional rolling stock
or infrastructure), the State, in
collaboration with the current franchisee
and stakeholders, have identified a
number of short term responses to
ease the strain on the current network,
with a focus on the peak periods.
These responses include the:
• introduction from April 2008 of 105
new weekly services including 45
evening peak and 10 morning peak
services, with at least another 95
weekly services from November
2008. The new services have
been added to the Sandringham,
Werribee, Dandenong, Pakenham,
Glen Waverley and Frankston lines;
63

• introduction of the Early Bird ticket.
As detailed in Section 2.6 Fares and
Ticketing, the Early Bird Ticket is
an incentive program that provides
free travel to train passengers who
arrive at their destination prior to
7am, to shift some of the peak
travel to the pre-peak period;
• refurbishment and operation
of 14 Hitachi three-car units to
ease some of the overcrowding
on peak services; and
• ‘Flex in the City’ promotion,
encouraging people to adopt flexible
working hours in the CBD to ease the
proportion of workers coming into
the CBD during the peak periods.
A number of operational changes have
been identified and are being rolled out
over the course of 2008 to optimise
the existing network and improve both
reliability and capacity. The changes
to improve reliability include:
• adjusting the official journey times
through the CBD and at interchange
stations, to ensure dwell times
reflect the actual times required;
• operating lines independently by
removing conflicts and sharing
platforms within the CBD to
reduce the current wait times.
This will impact the Caulfield
and Northern Groups;
• operating more lines directly
to Flinders Street to reduce
congestion in the loop, enabling
more services to be introduced;
• reversing the Clifton Hill Group
morning city loop direction to remove
the operational conflict currently
experienced at Jolimont and assist
with access around the loop for
Northern Group passengers; and
• potentially changing some
V/Line Passenger services to
skip North Melbourne Station,
requiring passengers to interchange
at Southern Cross Station.
To improve capacity, the following
strategies for increasing the
number of trains available for peak
periods will be implemented:
• introduction of 18 X’trapolis
6-car trains to commence
service in late 2009;
• introducing short distance trains
to maximise use of rolling stock
during peak times; and
• changing the approach to
maintenance to press more
trains from the existing fleet into
service - thereby maximising the
number of trains available for
the peak train services 187 .
In response to the train driver shortage,
the State, the current Franchise and
the Rail Tram and Bus Union (RTBU)
substantially increased its trainee driver
intake. By June 2007, Victoria was the
leading driver recruiter and trainer in
Australia; with 78 drivers completing
training in the 2007 financial year.
Through MOTC, the State has also
committed funds to provide an extra
180 drivers up to November 2008 189
to ensure continued service delivery.
64
Commercial in Confidence Expression of Interest Brief

2.11 Rolling Stock
Procurement
2.11.1 Metropolitan Trams
As proposed in MOTC, the State plans
to increase the current tram fleet, by
purchasing new low floor trams. It is
envisaged that upgrading the tram fleet
will improve the operations, reliability
and safety of the fleet. In conjunction
with the continued construction of tram
platform stops, barriers to travel for
people with disabilities will be reduced.
The current design life of Melbourne’s
trams is 30 to 35 years of age.
With the exception of the 95 trams
delivered within the last five years,
and the historical W Class trams,
the remaining fleet of 347 trams
progressively reaches the end of their
design life between 2010 and 2030.
In considering tram procurement, the
State is also examining options to
re-furbish the existing tram fleet.
Implications for existing infrastructure
The current fleet measures 9,506
metres in length, while current stabling
tracks measure 8,110 metres. As
a result of this shortfall, trams are
currently stabled in maintenance
bays, on access tracks and on points,
impacting the ready deployment of
trams and limiting the possibility of
night maintenance. This shortfall in
stabling has arisen due to the:
• retention of 31 Z1 and Z2 class
trams intended for retirement,
resulting in an additional 500
metres of fleet length;
• loss of stabling due to the creation
of low floor maintenance bays
from 2002 onwards; and
• disposal of tram depots a number
of years ago, following a period of
long term decline in tram patronage.
In the event that longer, low floor
trams replace retiring trams in the
future procurement strategy, the
fleet length will continue to increase,
and is estimated to reach 12,500
metres by 2030. This will place
demands on depots for additional
stabling and sufficient maintenance
facilities for the low floor trams.
Melbourne’s current depots offer
little opportunity for expansion, with
the exception of the Glen Huntly
and Brunswick depots. Additionally,
many of the existing maintenance
facilities will need to be reconfigured
to cater for the different maintenance
requirements and additional length
of the low floor trams. Consequently,
the total length of the maintenance
bays or the length of available stabling
will decrease at those depots. The
State is preparing a depot strategy to
investigate solutions to these issues.
• replacement of 105 shorter
trams with 95 longer trams from
2002, resulting in an additional
500 metres of fleet length;
65

The procurement of new rolling stock
will shift the makeup of the tram fleet,
resulting in a larger proportion of
low floor trams. This is anticipated
to impact other infrastructure
requirements including power supply.
Power supply is anticipated to
potentially differ under the changing
composition in the following ways:
• additional supply will be required to
enable a larger number of trams to
run concurrently on the network;
• additional power supply will be
required on those parts of the
network where old trams have
been replaced with modern, large,
air-conditioned trams; and
• the newer trams should offer
some power regeneration savings
to be captured through the
introduction of energy storage
devices (flywheels/capacitators)
within the new substations.
Other relatively minor infrastructure
works may also be needed to
accommodate the longer trams.
Most of these works should be
addressed in the planned or future
planned expansion of the accessible
tram platform stops, including:
• ensuring tram stops, terminals
and crossovers are consistent
with the new tram length; and
• modifying kerb-side stops for
use by wheelchair users.
2.11.2 Metropolitan Trains
Initial analysis by the State determined
that the long-term future of the
railway requires trains of greater
patronage capacity than that of the
existing fleet. However, it is unlikely
that these newly designed trains will
enter service before mid 2012 or
later, due to the long lead times in
the procurement of rolling stock.
Given the immediate demands on
the network, and the limited scope
for increasing peak service levels
through improved train availability, an
interim order for 18 X’Trapolis trains
was placed with Alstom in 2007, for
delivery in 2009, with introduction into
services of the first train in late 2009.
While much of Melbourne’s existing
train network is already operating near
capacity, it is envisaged the additional
X’Trapolis trains will progressively ease
overcrowding during the peaks by:
• taking advantage of spare train
paths where they currently exist;
• simplifying train stopping
patterns to increase the number
of train paths available; and
• progressively implementing targeted
MOTC-funded and other capital
works to increase track capacity.
To enable the additional X’Trapolis trains
to operate on the existing network, a
number of infrastructure enhancements
were identified. These included:
66
Commercial in Confidence Expression of Interest Brief

• additional stabling sidings - to
optimise the utilisation of the
existing rolling stock fleet requires
the construction of additional and
appropriately located stabling sidings,
(ideally a 20 percent margin above
the number required) to enable more
effective management of the existing
fleet, particularly in terms of capacity
to re-marshal defective trains.
Additionally, the current shortfall in
stabling capacity means each new
X’Trapolis train will also require a
new stabling siding to be provided;
an overall allowance of 20 percent
will also be required to facilitate
the marshalling of defective units;
• an upgrade of traction power supply
- a 14 percent increase in the number
of morning peak services by 2012
will require upgrading of the traction
power supply system at a number of
locations. The State has identified
sub-stations and other power
supply assets that are operating
at or above their design limit with
current services and an estimate of
the required traction power supply
upgrades has been made. Traction
power supply upgrades will be made
as part of normal maintenance and
renewal activities, while others
will be included as part of MOTC
capacity enhancement projects;
• an upgrade of maintenance facilities -
the existing rolling stock maintenance
facilities will require an upgrade to
cater for the increase in the rolling
stock fleet size and the consequential
number of maintenance tasks.
Additional maintenance staff will
be employed during 2008 to meet
maintenance requirements; and
• an upgrade of commissioning
facilities; the commissioning of the
most recently delivered train fleets
in 2002-2006 was undertaken in
existing maintenance facilities. This
placed considerable pressure on
the supply of trains for day-to-day
passenger services, particularly
during peak periods. With increasing
patronage, the pressures on train
availability have become even
greater and it is possible that
the availability of trains for peak
services will be compromised
if the new X’Trapolis trains are
commissioned in the existing
facilities, as they currently stand.
Enhancements to the existing
facilities are therefore planned to
ensure the facilities meet the future
requirements, without affecting the
maintenance of the existing fleet
or train availability. The proposed
enhancements include the provision of:
• additional staff amenities to ensure
sufficient capacity for the extra
commissioning personnel and to
avoid overloading existing facilities
for maintenance staff; and
• secure storage for parts,
equipment and the tools required
for commissioning activities.
These enhancements are to be
made prior to delivery of the 18
X’Trapolis trains, with requirements
to be reviewed as part of the future
procurement of rolling stock.
67

Patronage forecasts indicate that
the metropolitan train system will be
under significant and sustained growth
pressure beyond 2012. The magnitude
of growth forecast over this period will
place pressure on all aspects of the train
network. Recognising this together with
the expectations and objectives raised
by MOTC, the State, with cooperation
from stakeholders, is reviewing
requirements for train rolling stock and
associated infrastructure for the future.
This requires evaluating the options
for step-change technological
development of the system in areas
including, but not limited to:
• signalling;
• power supply;
• train configuration and capacity; and
• communications.
2.12 Public Transport
Infrastructure
In the 150 years public transport
has been operating within Victoria,
a significant portfolio of fixed
infrastructure has been developed
and incorporated into the Melbourne
tram and train networks, much of
which is still in operation today.
As a result, the infrastructure that
comprises these networks exhibits
a wide spectrum of characteristics,
regarding scale, complexity and age - a
situation which creates a number of
challenges to the long term maintenance
and operation of the networks.
Some of these key challenges include:
• the train network is currently
subject to significant capacity
constraints within the inner city
areas and other critical locations,
particularly within the City Loop;
• in comparison, the outer areas of
the train network have operational
flexibility constraints, limiting the
ability to run express services and
to interweave normal passenger
services and freight services;
• trams are predominately operating
within shared road areas, which
has resulted in significantly slower
running times in recent years
due to substantial increases
in traffic congestion; and
• much of the existing tram and train
infrastructure has been designed
and developed to standards which
are lower than that currently
required. This is currently not
so much an issue for day to day
operations and maintenance, but
is anticipated to have a growing
impact on the long term system
sustainability (in regard to
maintenance and renewal activities).
A number of significant network
improvement and expansion projects
are proposed over the next 10 to 20
years to address some of the identified
capacity constraints, improve aspects
of the systems operation, and provide
public transport services to new
communities. It is also anticipated that
the implementation of these projects will
place some short term pressures and
constraints on the ongoing operation of
the systems, including the infrastructure
maintenance and renewal activities.
68
Commercial in Confidence Expression of Interest Brief

2.12.1 Existing Melbourne
Tram Infrastructure
A breakdown of the Melbourne
metropolitan tram network main
asset types, along with the estimated
extent, is provided in Table 18 below.
Table 18: Overview of Existing Melbourne Metropolitan Tram Network Infrastructure
Assets Estimated Total Unit Source
Track
Main running lines 507 Kilometre 1
Turnouts 735 Number 2
Crossings (at intersections) 33 Number 2
Structures
Bridges 6 Number 1
Subways 7 Number 1
Shelters 730 Number 1
Stops 1,779 Number 1
Safety zones 486 Number 1
Platforms 124 Number 4
Maintenance depots 8 Number 1
Overhead structures (poles) 16,558 Number 4
Power
Overhead wiring (contact wire) 523 Kilometre 1
Overhead wiring (insulators) 400 Number 4
Overhead switchgear 204 Number 4
Substations 46 Number 1
Feeder cable (underground and aerial) 190 Kilometre 2
Electrolysis system 25 Kilometre 2
Traction control system 1 Number 2
Signalling
Automatic point machines 110 Number 2
Communications
See table below
Communications cables (aerial) 80 Kilometre 2
AVM System 1 Number 2
Radio base stations 7 Number 2
Signal post transmitters 239 Number 1
1. PASS Assets GIS (DOT public transport
infrastructure information system),
data as at 03/03/2008.
2. The 2004 Infrastructure Lease between
the Director of Public Transport, MetroLink
Victoria Pty Ltd, Transfield MetroLink Pty Ltd,
Transdev Victoria Pty Ltd and Victorian Rail
Track, dated 19/02/2004.
4. CAMS, (Yarra Trams Asset Management
System) data as at 23/01/2008.
Communications
Various communications systems
are used, including:
Passenger support systems (Intercom,
PA, PIDS, PRIDE, on train PA);
Operational support systems (Train
radio, SPT, SPOT, CCTV, train number
transmitters, security systems); and
Metrol communications systems
(Tunnel Telephone, ACOM, CMS).
69

2.12.2 Existing Melbourne
Train Infrastructure
Infrastructure within a train network can
broadly be segregated into the following
asset groupings: track, structures,
power, signalling and communications.
Each asset grouping can then be broken
down further into individual asset
types. A breakdown of the Melbourne
metropolitan train network main
asset types, along with the estimated
extent, is provided in Table 19 below.
Table 19: Overview of Existing Melbourne Metropolitan Train Network Infrastructure
Communications
Various communications systems
are used, including:
Passenger support systems (Intercom,
PA, PIDS, PRIDE, on train PA);
Operational support systems (Train
radio, SPT, SPOT, CCTV, train number
transmitters, security systems); and
Metrol communications systems
(Tunnel Telephone, ACOM, CMS).
Assets Estimated Total Unit Source
Track
Main running lines – electrified 761 Kilometre 1
Main running lines – non-electrified 41 Kilometre 2
Main running lines – city loop 17 Kilometre 2
Other lines – sidings and
rolling stock maintenance
Train crossings (including turnouts,
single and double compound
crossings and diamonds)
31 Kilometre 1
1513 Number 1
Level crossings – road crossings 226 Number 1
Level crossings – pedestrian crossings 519 Number 1
Level crossings – occupation
/ maintenance
114 Number 1
Level crossings – rail / tram crossings 4 Number 1
Structures
Bridges – rail 305 Number 1
Bridges – road 143 Number 1
Bridges – pedestrian 77 Number 1
Cuttings and embankments 104.5 Kilometre 1
Subways 83 Number 1
Tunnels 6 Number 1
Stations – above ground / premium 69 Number 1
Stations – above ground / standard 139 Number 1
Stations – underground 3 Number 1
Heritage buildings 29 Number 2
Car parking spaces –
sealed and unsealed
29,627 Number 1
70
Commercial in Confidence Expression of Interest Brief

Assets Estimated Total Unit Source
Maintenance depots 6 Number 1
Train wash plant 2 Number 1
Power
Overhead wiring 926 Kilometre 1
Substations 67 Number 1
Power control system 1 Number 2
Tie stations 23 Number 1
22kV transmission line 122 Kilometre 2
Electrolysis feeders 90 Kilometre 2
DC feeders 50 Kilometre 2
Signalling
Manual block 3 Number 2
Track circuits 4,061 Number 3
Interlockings (computer, relay,
electro-mechanical and mechanical)
120 Number 2
Signals (home, auto and dwarf) 2,543 Number 3
Points 1,419 Number 3
Train stops 2,009 Number 1
Level crossing protection 454 Number 3
Train control system (Metrol) 1 Number 2
Signals communication system 1 Number 2
Sources:
1. PASS Assets GIS (DOT public transport infrastructure information system), data as at
03/03/2008.
2. The 2004 Infrastructure Lease between the Director of Public Transport, Melbourne Transport
Enterprise Pty Ltd and Victorian Rail Track, dated 19/02/2004.
3. MIMs (Mainco Asset Management System), data as at 21/02/2006
71

It should be noted that not all train
infrastructure assets within Melbourne
are included within the metropolitan train
network. Some assets are part of the
Victorian regional train network, whilst
others are privately owned assets used
solely for freight related activities.
2.12.3 Development of
Infrastructure
Improvement Projects
The identification, planning and
development of major improvement
projects for the tram and train networks
are currently undertaken by the
Public Transport Division (PTD) with
the assistance of the Infrastructure
Projects Division (IPD) of DOT in a
client/developer partnership, on
behalf of the State. The existing
tram and train operators are involved
in these projects in a significant
stakeholder role, rather than having
direct delivery responsibilities.
Recently there has been a move towards
earlier operator involvement with these
infrastructure improvement projects,
with the tram and train operators directly
involved in project delivery where
appropriate. It is believed this approach
reduces tensions between the delivery
of the infrastructure improvement
project and the day-to-day operations
of the tram and train networks.
2.12.4 Metropolitan Tram
Improvement Projects 190
To improve the metropolitan tram
network, the State has allocated
funding to a number of current
projects. This includes:
• allocating a further AUD$26m
to extend the Think Tram
program until 2010-2011;
• allocating funding of AUD$250m to
improve accessible public transport,
including the construction of an
additional 250 platform stops; and
• extending route 86 to the Waterfront
City area of the Docklands precinct
in mid 2008, to create a direct
transport link between Southern
Cross Station and Docklands Drive.
Further details of these projects (and
other recently completed works)
are available on the Department of
Transport’s website, www.doi.vic.gov.au.
2.12.5 Metropolitan Trains
Infrastructure
Improvement Projects 191
The State has developed an extensive
program for upgrading and extending
the heavy rail network infrastructure
across Melbourne, which includes
upgrades to rail lines, stations and
signalling systems. The following
is a list of current projects:
• upgrading three existing stations to
Premium Stations, along with further
upgrading works at Flinders Street;
• upgrading signalling
within the City Loop;
• infrastructure improvements on
the Werribee line to allow short
services from Laverton;
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Commercial in Confidence Expression of Interest Brief

• upgrading the stabling facilities at
Cranbourne, Pakenham, Westall
and on the Werribee rail corridor
and providing additional stabling
facilities at Craigieburn;
• building a third track between
Caulfield and Dandenong;
• duplicating the track between Clifton
Hill and Westgarth which involves
the construction of a second rail
bridge across the Merri Creek (this
is under construction and due for
completion mid October 2009);
• building or expanding Park and Ride
facilities at Pakenham, Berwick,
Roxburgh Park, Hoppers Crossing,
Aircraft, Laverton, Chelsea,
Lilydale, Seaford, Cheltenham and
Watergardens Stations. This will
provide 1,707 additional car park
spaces over the next four years and
represents 34 percent of the 5,000
spaces committed in MOTC; and
• upgrading multi-modal interchanges.
The East West Link Needs Assessment
(EWLNA) was recently completed by
Sir Rod Eddington. The Assessment
provides recommendations on a
range of transport related issues. The
Government will provide its response
to the review by the end of 2008.
For further information on each of
these projects and other recently
completed works, the Department
of Transport’s website, www.doi.
vic.gov.au should be consulted.
73

Attachment 1:
Key Facts and Figures
Commercial in Confidence Expression of Interest Brief

The following table reflect approximate figures as at 2006/07 Financial Year –
(1 July – 30 June) for the Melbourne Metropolitan Tram and Train Operations.
Cost base of services provided AUD$538 Million AUD$281 Million
Performance
Train Tram Source and date of Information
On time performance 92.2% 82.7% 2006/07 DOT Annual Report
Cancellation of services 1.1% 0.2% 2006/07 DOT Annual Report
Passengers carried per annum 178.6 Million 154.9 Million 2006/07 DOT Annual Report
Travelled kilometres per annum 17.2 Million 23.1 Million 2006/07 DOT Annual Report
Track and Infrastructure
Routes 15 Train routes 28 Tram routes Train: Train network map,
www.metlinkmelbourne.com.au
(viewed 07/02/08)
Tram: Tram network map,
www.metlinkmelbourne.com.au
(viewed 13/02/08)
Route kilometres (excluding City Loop) 382 route kilometres 249 kilometres of
double track
Train: PASS Assets GIS ^
Tram: PASS Assets GIS ^
Route Kilometres - City Loop 4 route kilometres N/A Train: PASS Assets GIS ^
Total route kilometres 386 route kilometres 249 kilometres of
double track
Line speed
Line speed – inner areas 80 kms per hour n/a
Average speed 35 kms per hour 16 kms per hour
75

The following table reflects approximate figures as at 2006/07 Financial Year – (1 July – 30 June) for
the train platforms and tram stops on the Melbourne metropolitan tram and train operations.
Train Tram Source and date of Information
Number of Standard Stations
/ Platforms / Stops
Number of Premium Stations
/ Platforms / Stops
Total Stations / Platforms / Stops
Number of DDA Compliant
Stations / Stops
Average distance between
stations/ stops (whole network)
• 139 stations,
each with 1, 2, 3
or 4 platforms
• 279 individual
train platforms
• 72 stations, each
typically with 2, 3
or 4 platforms
• 192 individual
train platforms
• Southern Cross
Station has 6
metropolitan (plus
additional regional)
platforms
• Flinders Street
Station has 12
platforms (with
limited regional
train usage)
• 213 stations
• 471 individual
train platforms
• There are 28 DDA
categories for
stations. Compliance
with these categories
varies from 28%
to 100%.
• Average compliance
is 77%
• 1,569 individual
tram stops
• 210 individual
platform tram stops
• 1,779 individual tram stops
• 210
Train: PASS Assets GIS ^
Tram: PASS Assets GIS^ and PTD ^^
Train: PASS Assets GIS ^
Tram: PASS Assets GIS^ and PTD ^^
Train: Connex DDA Action Plan
Report July 06/June 07
Tram: PTD ^^
• 2.5 kilometres • 260 Metres Train: PASS Assets GIS ^
Tram: PASS Assets GIS ^
^ PASS Assets GIS (DOT public transport infrastructure information system).
^^ PTD Franchise Relationships Accessibility Unit information (current at 07/02/08).
76
Commercial in Confidence Expression of Interest Brief

The following table shows the number and types of trains and trams and scheduled services on the
Melbourne metropolitan tram and train operations as at 2006/07 Financial Year – (1 July – 30 June).
Train
(3 car sets)
Current fleet Pre 1999
rolling stock
• 187 Comeng
• 14 Hitachi
Post 1999
rolling stock
• 58 Alstom X’trapolis
• 72 Siemens Nexas
Tram
(individual)
Pre 1999
rolling stock
• 51 W Class
• 145 Z Class
• 70 A Class
• 132 B Class
• 3 Restaurant
Trams (W Class)
Post 1999
rolling stock
• 36 C Class
(Three Section
Alstom Citadis)
• 38 D1 Class (Three
Section Siemens
Combino)
• 21 D2 Class (Five
Section Siemens
Combino)
Subtotal 331 Subtotal 496 Subtotal
Ordered, but not yet in service Post 1999
rolling stock
• 36 Alstom X’trapolis
(arriving from late
2009 onwards)
Total 367 three car units 501 trams
Daily Scheduled Services
Monday – Thursday
Friday
Saturday
Sunday
1,916
1,944
1,502
1,175
Post 1999
rolling stock
• 5 Five Section
Alstom Citadis
(leased from
France for between
2008 and 2011)
4,900
5,080
3,880
2,750
Source and date of information
Train: Connex Rolling Stock
Management Plan 2007/08
(Final) (Connex, 15/06/07)
Tram: Yarra Trams Rolling Stock
Management Plan 2006/07
(Yarra Trams, 30/06/06)
Train: 18 More Trains Ordered for
Metropolitan Rail System Media Release
(Victoria Government, 21/12/07)
Tram: Five More Trams to be Added
to Metropolitan System Media Release
(Victorian Government, 07/02/08)
77

The following tables show the numbers of staff and farebox revenue for the Melbourne metropolitan
tram and train operations as at 2006/07 Financial Year – (1 July – 30 June).
Train
Tram
Operator Staff, July 2007
Staff
(excluding contractors)
335 customer
service staff
660 train drivers
690 station staff
375 administration staff
225 rolling stock staff
525 infrastructure staff
Total staff 2,810 staff 1,885 staff
260 Frontline
support staff
1,130 tram drivers
70 depot staff
90 administration staff
150 rolling stock staff
125 infrastructure staff
60 operational staff
Metropolitan Farebox Revenue
Financial
Year
Total Revenue
$ (millions)
% Growth Tram (40% share) Train (40% share) State(20% share)
2004/05 $372M $149M $149M $74M
2005/06 $406M 9% $162M $162M $82M
2006/07 $462M 14% $185M $185M $92M
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Commercial in Confidence Expression of Interest Brief

Appendix B –
Statutory and Contractual Framework
79

Statutory Framework
Victoria’s rail transport legislation
is comprised primarily of
the following Acts:
• the Transport Act 1983 (Vic);
• the Rail Corporations Act
1996 (Vic); and
• the Rail Safety Act 2006 (Vic).
This legislation underpins the
contractual frameworks within which
the Franchises will operate.
3.1 Transport Act
3.1.1 Overview
The Transport Act defines the roles
and responsibilities of the executive
government agencies responsible for
the transport sector: the Minister,
the Secretary and the Department
of Infrastructure. The Department
of Infrastructure was renamed the
Department of Transport (‘DOT’) by
Order-In-Council on 30th April 2008
The Transport Act also establishes a
number of transport sector specific
agencies. The most important of
these for the Franchises are the:
• Director of Public
Transport (‘Director’);
• Director, Public Transport Safety
(the ‘Safety Director’); and
• Chief Investigator, Transport
and Marine Safety Investigations
(the ‘Chief Investigator’).
80
Commercial in Confidence Expression of Interest Brief

3.1.2 Director of Public
Transport
The Director is a statutory position
established under the Transport Act.
Amongst other duties, the Director
is responsible for the general
administration of the arrangements
entered into with the operators of
the Franchises. The Director has
broad powers and, in particular, is
authorised on behalf of the State to:
• enter into agreements, leases or
licences relating to, or connected
with, the provision or operation by
a person or a body of a service
for the carrying of passengers
by railway or tramway;
• operate a service for the carrying of
passengers by railway or tramway;
• operate services ancillary or
incidental to the operation of
a service for the carrying of
passengers by railway or tramway;
• acquire, own, build, maintain and
operate rail and tram infrastructure;
• enter into agreements relating to
the allocation of revenue derived
from the provision of any service
for the carrying of passengers
by railway or tramway; and
• enter into any other agreement, lease
or licence or to do any other thing
that is necessary for the performance
of the Director’s functions.
The Public Transport Division of DOT
exists to support the Director in the
performance of his/her functions.
3.1.3 Director, Public
Transport Safety
The Transport Act also establishes
the statutory office of the Safety
Director. The principal objective of
the Safety Director is to facilitate
the safe operation of rail and bus
transport services in Victoria. The
Safety Director’s functions include:
• advising and making
recommendations to the Minister
for Public Transport in respect to
matters relating to the safe operation
of public transport in Victoria;
• investigating and reporting on
public safety transport matters;
• preparing codes of practice and
guidelines to provide guidance in
relation to transport safety laws;
• promoting education and training in
relation to public transport safety;
• collecting information and
data relating to public
transport safety matters;
• promoting awareness in the rail
transport industry and among the
public about rail safety initiatives; and
• advising people who have a duty
or obligation under a transport
safety law about complying
with that duty or obligation.
Public Transport Safety Victoria
(‘PTSV’), exists to support the Safety
Director in the performance of his/
her functions. PTSV administers
the rail safety accreditation of
transport operators (refer Section
3.3 of this Appendix for information
regarding the Rail Safety Act).
81

3.1.4 Chief Investigator,
Transport and Marine
Safety Investigations
The Chief Investigator is a statutory
position established under the Transport
Act with the objective of improving
public transport and marine safety
by independently investigating public
transport and marine safety matters.
The principal function of the Chief
Investigator is to conduct investigations
into ‘public transport safety matters’
and to report the results of any
investigations conducted by him/her
to the Minister for Public Transport.
‘Public transport safety matters’ include
incidents involving rolling stock or rail
infrastructure that resulted in, or had
the potential to result in, the death of,
or injury to, any person or damage to
any property or equipment. The Chief
Investigator also has the power to
establish a system for the voluntary
reporting by transport workers of
‘public transport safety matters’ and to
administer any such reporting system.
3.2 Rail Corporations Act
3.2.1 Overview
The Rail Corporations Act also
establishes a number of transport
sector agencies and confers
statutory powers on the operators
of the Franchises. The statutory
bodies created under this Act include
Victorian Rail Track (which carries on
business under the name ‘VicTrack’),
V/Line Passenger Corporation and
Southern Cross Station Authority.
This Act sets out their respective
objectives, functions and powers.
3.2.2 VicTrack
VicTrack is a Government Business
Enterprise public authority established
under the Rail Corporations Act to own
rolling stock, land and infrastructure
used for the Melbourne metropolitan
tram and train services and to ensure
the maintenance of that rolling stock,
land and infrastructure. VicTrack reports
to the Minister for Public Transport.
The functions of VicTrack include:
• to establish, manage and maintain
railways, rail infrastructure,
tramways and tram infrastructure
(including track, overhead wiring,
communications networks,
buildings and structures, signals
and power sub-stations);
• to direct, control and charge for
access to, and the movement
of rolling stock on, railways
and tramways; and
• when directed by the Minister, to
operate rolling stock to provide
passenger services and to operate
services ancillary or incidental to its
rail passenger or tram services.
Under the Rail Corporations Act,
VicTrack has broad powers to acquire
and operate rail and tram infrastructure
and rolling stock for the purposes
of carrying out its functions, and
to make land and other property
vested in or managed by it available
for use by other persons (including
leasing any rail infrastructure or
tram infrastructure owned by it).
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Commercial in Confidence Expression of Interest Brief

VicTrack (via a subsidiary) owns the
majority of the tram and train rolling
stock that operates on the Melbourne
metropolitan tram and train networks.
These assets are leased to the
Franchisees who are then responsible
for asset maintenance during the term of
the Franchises. VicTrack also owns the
land and infrastructure relating to the
metropolitan tram and train networks.
This land and infrastructure is leased (via
the Director of Public Transport) to the
Franchisees, such that the Franchisees
operate as vertically integrated
(above and below rail) businesses.
3.2.3 V/Line Passenger
Corporation
V/Line Passenger Corporation (‘VLP’)
is a public authority established
under the Rail Corporations Act to
operate rural rail passenger services
and services ancillary or incidental
to its rail passenger services,
including rural coach services.
VLP shares railway track with the
operator of the metropolitan train
Franchise within metropolitan
Melbourne. VLP also has the right to
access certain metropolitan railway
stations, as well as facilities and
services at those stations, pursuant to
agreements with the metropolitan train
operator. VLP also hires rolling stock to
the metropolitan train operator pursuant
to a rolling stock hire agreement.
3.2.4 Southern Cross
Station Authority
The Southern Cross Station Authority
(‘SCSA’) is a public authority
established under the Rail Corporations
Act to redevelop and manage the
Southern Cross Station precinct.
The SCSA leases Southern Cross
Station to Civic Nexus, a private
sector consortium that manages and
operates Southern Cross Station. In
turn, Civic Nexus provides access
to the station to the operator of
the metropolitan train Franchise
pursuant to an access agreement.
3.2.5 Private sector operators
The Rail Corporations Act confers
various powers upon the operators
of the Franchises to undertake
works associated with the use and
operation of transport infrastructure.
These include the right to:
• open and break up, and divert traffic
from, any road on or adjacent to rail
infrastructure or tram infrastructure;
• stop traffic; and
• require the owner or occupier of
land on which a tree is situated,
(which poses a risk to the safety
of anyone on, or using a railway
track), to fell and remove the tree.
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3.3 Rail Safety Act
The Rail Safety Act creates a regime
to provide for safe rail operations in
Victoria. The Rail Safety Act principally
deals with rail safety accreditation
and safety duties in relation to rail
operations, both of which impact directly
on the operators of the Franchises.
This Act establishes a compulsory rail
safety accreditation scheme for rail
operators, administered by the Safety
Director. To attain accreditation, a
rail operator must demonstrate to the
satisfaction of the Safety Director that
it has the competence and capacity
to manage the safety risks associated
with the rail operations which it
undertakes. The Franchisees must be
accredited under this scheme. The
current Franchisees are deemed to
have transitional accreditation under
this scheme until 1 July 2008, after
which time they will need to comply
with the accreditation regime.
The Rail Safety Act also sets out a
number of duties relating to safe rail
operations which rail infrastructure
managers, rolling stock operators, rail
contractors and rail safety workers need
to comply with. As ‘rail infrastructure
managers’ and ‘rolling stock operators’,
the Franchisees need to meet the
obligations specified in this Act.
3.4 Transport
Legislation Review
The Transport Act, Rail Corporations
Act, Public Transport Competition
Act and the Road Management Act
are currently being reviewed as part
of the ‘Transport Legislation Review’
which was announced by the Minister
for Public Transport on 9 October
2007. This is the first comprehensive
review of Victoria’s transport
legislation in more than 20 years.
The Transport Legislation Review
comprises one of the key actions in
Meeting our Transport Challenges.
The review aims to modernise
Victoria’s transport legislation to
ensure it meets Victoria’s current
and future transport needs.
A discussion paper entitled “Towards
an integrated and sustainable transport
future: a new legislative framework
for Victoria” has been released by the
Government. The paper identifies a set
of draft objectives for legislation and
public comment has been sought on
those objectives. Following analysis of
submissions, the Government expects
to release a policy position paper on
a new set of objectives for transport
legislation by mid 2008, with resulting
legislation being introduced into
Parliament in the second half of 2008.
Recent amendments to the Rail Safety
Act have also introduced obligations
relating to ‘safety interface agreements’,
which Franchisees will need to comply
with once the relevant provisions
come into operation on 1 July 2010.
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Commercial in Confidence Expression of Interest Brief

Contractual Framework
4.1 Franchise
Arrangements
The statutory framework set out above
underpins the contractual framework
within which the Franchises will operate.
This contractual framework involves
a suite of agreements between the
State, the Franchisees, Metlink, the
Transport Ticketing Authority (‘TTA’),
and key sub-contractors and suppliers
(together the ‘Franchise Arrangements’).
The Franchise Arrangements are
divided into the following categories:
• Transaction Documents – governing
the relationship between the State
and the Franchisees, including the
Transfer Agreements, Franchise
Agreements, Infrastructure Leases,
Projects Agreement, State Rolling
Stock Leases and any necessary
supporting agreements;
• Direct Agreements – governing
the relationship between the
State and the Franchisees’
key suppliers or contractors,
most notably the suppliers and
maintainers of rolling stock;
• Interoperator Agreements –
governing the inter-relationship
between the Franchisees and
other industry participants eg, to
support network-wide services;
• Third Party Agreements – governing
the relationship between the
Franchisees and their suppliers;
• Metlink Agreements – governing
the ownership, governance and
funding of Metlink and its operational
relationship with the State and
other key stakeholders; and
• TTA Agreements – governing the
relationships between the Franchisees
and the State with respect to
revenue sharing and transitioning
to the new ticketing system.
In addition to the arrangements
outlined above, Franchisees will also
be required to participate in the
Public Transport Ombudsman scheme
(refer to Section 4.7 of this Appendix
for information regarding the Public
Transport Ombudsman scheme).
85

Figure 17: The current contractual framework
Provider of
Performance Bonds
Performance Bonds
Deeds of Subordination
Director of Public
Transport
Direct Agreements
Metlink Services Agreement
Franchise Agreements
Infrastructure Leases
Ticketing Management Agreement
Transition Agreement
Revenue Sharing Agreement
Key Suppliers
Metlink
TTA
Operator Services Agreements
Train/Tram Operator Services Agreements
Interoperator Agreements
Franchisees
Franchisees
Transition Agreement
Revenue Sharing Agreement
Other Operators
Interoperator
Agreements
Third Party Contracts
Key Contracts
Non Key Suppliers
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Commercial in Confidence Expression of Interest Brief

Although the matrix of documents
comprising the new Franchise
Arrangements are still being developed,
the current contractual framework
as depicted in Figure 17 below
provides a good indication of the
likely future industry framework.
4.2 Transaction
Documents
The key Transaction Documents relating
to the Franchises will be as follows:
• Transfer Agreements - for the sale
of assets of the tram and train
businesses from Yarra Trams and
Connex to their respective successor
operators (in the event of a change
of tram or train operator);
• Franchise Agreements - between the
Director and the Franchisees under
which the provision of passenger
rail services will be regulated
and a base operating payment
and various incentives paid;
• Infrastructure Leases - for the lease
of rail infrastructure (including
stations and track) by the Director to
the Franchisees (the Director leases
that infrastructure from VicTrack and
Southern Cross Station Authority
under a separate Head Lease);
• State Rolling Stock Lease - for
the lease of part of the rolling
stock fleet by the Director to the
Franchisees (the Director leases
the rolling stock from Rolling
Stock Holdings (Victoria) Pty Ltd
(‘RSHV’), a subsidiary of VicTrack
under a separate Head Lease);
• supporting agreements, which
support the Director’s rights
under the Franchise Arrangements
set out above, including
charges, performance bonds
and deeds of subordination.
4.2.1 Transfer Agreements
In the event that the outcome of the
tendering process leads to a change
of tram or train operator, Transfer
Agreements will be required to govern
the transfer of assets, employees and
contracts of the new Franchisees from
the current Franchisees. Transition and
handover matters will also be dealt
with in the Transfer Agreements.
4.2.2 Franchise Agreements
The Franchise Agreements, between
the Director and the Franchisees, are
pivotal to the Franchise Arrangements.
The Franchise Agreements will
impose a range of obligations on
the Franchisees in relation to:
• the provision of passenger rail
services and service standards;
• fare regulation;
• network development and
service planning obligations;
• reporting and approval arrangements;
• payment regimes;
• enforcement powers; and
• compliance with other relevant
contracts and the end of
the relevant Franchise.
• Projects Agreement – for the
provisions and obligations relating
to project delivery regime; and
87

The Franchise Agreements will also
provide a framework of incentives
and penalties designed to improve
the punctuality and reliability of
tram and train services and to
improve the passenger experience in
relation to using public transport.
The Franchise Agreements will allow
the Director to issue Practice Notes
to the Franchisees to facilitate the
administration of the Franchise
Arrangements by providing more
detailed explanations of the principles
and mechanisms contained therein.
4.2.3 Infrastructure Leases
The Infrastructure Leases are
key contracts in the Franchise
Arrangements. Under the Infrastructure
Leases, the infrastructure and land
relating to the metropolitan tram and
train networks will be leased to the
Franchisees to enable them to operate
their respective Franchises. The
Infrastructure Leases will also set out
the Franchisees obligations to operate,
maintain and assist with development
of the relevant infrastructure.
The Infrastructure Lease will be a tripartite
agreement between VicTrack,
the Director and the Franchisee.
VicTrack is the owner of the land and
infrastructure leased to Franchisees.
The Director leases this land and
infrastructure from VicTrack under a
separate head lease and subsequently
sub-leases it to Franchisees’ under
the Infrastructure Leases.
One of the principal aims of the
Infrastructure Leases is to ensure
that the tram and train networks are
adequately maintained, having regard
to the long life of the relevant assets
relative to the shorter term of the
Franchises. A key aim for the State when
drafting the Infrastructure Leases is
to ensure that the Franchisees do not
allow the condition of the network to
deteriorate during the Franchise period.
4.2.4 State Rolling
Stock Leases
Under the State Rolling Stock Leases,
(between the Director and the
Franchisees) part of the rolling stock
fleet used on the metropolitan tram
and train networks is leased to the
Franchisees to enable them to operate
the Franchises. RSHV is the owner of
this rolling stock. The Director leases
this rolling stock from RSHV under a
separate head lease and subsequently
sub-leases it to the Franchisees.
4.2.5 Projects Agreements
The Projects Agreements will prescribe
the arrangements for the delivery of
projects and the roles and obligations
of the State and Franchisees.
VicTrack, as the owner of the land, will
retain a number of rights in respect of
the land and is a party to the lease for
the purpose of enforcing those rights.
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Commercial in Confidence Expression of Interest Brief

4.2.6 Supporting agreements
There are four principal agreements
which support the Director’s rights
under the Transaction Documents:
• Security Documents – Franchisees
will be required to grant a first-ranking
charge to the Director over all of their
assets to secure the performance of
their obligations under the Franchise
Arrangements. In addition, the parent
companies of the Franchisees will
be required to grant a mortgage
over the shares in the Franchisees
to secure those obligations;
• Performance Bonds – Franchisees will
be required to arrange a performance
bond to be issued in favour of the
Director. The Director may draw
upon the Performance Bond to
meet the payment obligations of
the Franchisees, their Franchise
Entities or Metlink under the
Franchise Arrangements and certain
documents relating to Metlink;
• Deeds of Subordination – under
these deeds, the financial institution
providing the Performance Bonds
on behalf of a Franchisees will be
required to agree to rank after
the Director and the Franchisees’
unsecured creditors in the event of
the insolvency of a Franchisee; and
• Parent Company Guarantees
– Franchisees may be required
to provide a parent company
guarantee to secure performance
of their obligations to the Director
under the Franchise Arrangements
to a capped amount.
4.3 Direct Agreements
If the Franchisees elect to outsource
the supply of goods and services which
are crucial to the operation of tram
and train services, the Franchisees
will be required to procure that Direct
Agreements be executed between
the State and the Franchisees’ key
subcontractors and suppliers.
The primary aim of Direct Agreements
is to protect the State’s interests
when the Franchises terminate (either
through natural expiry or through
default) by securing continuity of
supply of services and/or access to
warranties and intellectual property
rights. Direct Agreements may
also secure the effective transfer
of assets, personnel and any subcontracts
to a successor operator.
Historically, Direct Agreements have
been entered into with suppliers
of infrastructure and rolling stock
maintenance services, electricity for
traction power, rolling stock leases
and retail leases which the State
would want to see continued, at least
in the short term, if the Franchise
Arrangements came to an end.
The Franchisees will be required
to procure Direct Agreements for
any new key contract entered into
during the Franchise period.
89

4.4 Interoperator
Agreements
Interoperator Agreements are
agreements between Franchisees
and ‘Franchise Operators’ such as
a tram operator, a train operator, a
bus operator or Metlink. The purpose
of Interoperator Agreements is to
govern the use and supply of key joint
services such as power supply, track
access and train/tram control. The
principal Interoperator Agreements
will be defined in the Franchise
Agreements and are likely to include:
• Rail Squares Access Agreement
– between the tram and train
operators which will govern
access to, and the maintenance
of, ‘rail squares’ (where the tram
and train networks intersect);
• Track Access Agreements – the
train operator will be required
to grant track access to other
train operators such as VLP,
CountryLink, and Great Southern
Railway under these agreements;
• Station Agreements – the train
operator will be required to grant
VLP access to certain metropolitan
railway stations, as well as facilities
and services at those stations,
pursuant to a station agreement with
the train operator. Agreements will
also be required to govern the train
operator’s access to Southern Cross
Station and the provision of services
within Southern Cross Station;
• Traction Power Agreement
– Interoperator agreements
for reconciliation of costs of
electricity consumption may
be required between the tram
and train operators; and
• Rolling Stock Hire Agreement –
between VLP and Connex under
which rolling stock required by
Connex to operate services on the
Stony Point Line is hired from VLP.
A number of agreements relating
to the ownership, governance and
funding of Metlink are also considered
‘Interoperator Agreements’ under
the current Franchise Agreements.
4.5 Third Party
Agreements
The Franchisees may also enter into
a number of other material contracts
with their suppliers. Some of these
agreements, although material,
are not sufficiently important to be
a ‘key contract’ and thus do not
warrant a Direct Agreement between
the Director and the supplier.
4.6 Metlink & TTA
Agreements
Metlink and TTA are transport
sector bodies which are currently
not recognised in the statutory
framework outlined above. However,
they both play an integral role
in the industry framework.
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4.6.1 Metlink
Metlink was established as a proprietary
limited company under the Corporations
Act 2001 (Cth) and is currently
jointly owned by the Franchisees.
Metlink is responsible for networkwide
functions such as marketing,
customer information, data collection
and analysis and public transport
advocacy. Although the ownership
and governance structure of Metlink
may change following re-franchising,
the current contractual framework
relating to Metlink provides a good
indication of its’ likely future structure.
The contractual framework relating
to the functions of Metlink is primarily
based on the following documents:
• Metlink Services Agreements –
between the Director and Metlink
which sets out the services which
Metlink is obligated to provide
to the Director and the payment
regime for those services;
• Franchisee Services Agreements
- between each of the Franchisees
and Metlink which will require the
parties to provide each other with an
agreed set of services. The services
to be provided by the Franchisees to
Metlink will be set out in the Franchise
Agreements and will support the
services to be provided by Metlink
to the Director under the Metlink
Services Agreement. For example,
the Franchisees will be obliged to
provide Metlink with the data it
requires (a Franchise Agreements
obligation) to fulfil its obligations
in relation to the timely provision
of timetable information (a Metlink
Services Agreement obligation);
• Metlink Shareholders’ Agreement
– between the Franchisees which
will establish the board structure,
governance regime, voting
rights and liquidity requirements
of Metlink and set out its key
functions to be undertaken; and
• Franchise Agreements - will require
the Franchisees to purchase specified
services from Metlink (as opposed
to undertaking them individually) and
also to provide certain services to
Metlink to enable Metlink to perform
its obligations to the Director under
the Metlink Services Agreement.
As noted above, a number of
agreements relating to the ownership,
governance and funding of Metlink are
considered ‘Interoperator Agreements’
under the current Franchise Agreements.
4.6.2 TTA
TTA, which was established under the
State Owned Enterprises Act 1992
(Vic), is principally responsible for
administering the existing OneLink
ticketing system, procuring the
introduction of a new ticketing system,
revenue collection and revenue
allocation in relation to the Melbourne
metropolitan tram and train networks.
TTA is a party to the New Ticketing
Solution Project Agreement with Keane
Australia Micropayment Consortium
Pty Ltd relating to the acquisition
of the new ticketing system. TTA
is also currently responsible for
receipt of revenue received through
the existing ticketing system, and
allocation of that revenue among the
transport operators, in accordance
with the following agreements:
91

• Revenue Sharing Agreement –
between the Director, Connex,
Yarra Trams, VLP and TTA, which
describes how revenue will be
collected by TTA on behalf of the
operators and the Director, and how
it will be distributed between them;
• Transport Ticketing System Transition
Agreement – between the Director,
TTA, Metlink, Connex, Yarra Trams
and VLP, which (amongst other things)
sets out the services which will be
provided by TTA to the Director; and
• Ticketing Management Agreement -
between the Director and TTA, which
principally establishes the rights
and obligations of the Director, in
relation to TTA’s existing ticketing
arrangements with OneLink.
4.7 Public Transport
Ombudsman (‘PTO’)
The PTO scheme was established to
receive, investigate and facilitate the
resolution of complaints and disputes
between public transport users
and transport operators, where the
operators have been unable to resolve
the complaint in the first instance.
The PTO is supported by Public
Transport Ombudsman Limited, a
company limited by guarantee and
governed by a board of Directors
comprised of industry and consumer
representatives who oversee the
independent operation of the scheme.
The Franchisees will be required to
become members of the PTO scheme.
Depending on the timing of the
delivery of the new ticketing
system, the contractual relationship
with TTA may differ from the
arrangements outlined above.
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Commercial in Confidence Expression of Interest Brief

Endnotes
1 Australian Bureau of Statistics, population as at June
2007, www.abs.gov.au, site viewed 07/01/2007
2 Australian Bureau of Statistics, 2006 Census Quickstats: Melbourne
(Statistical Division)
3 Travel Victoria, Geelong Facts and Services,
http://www.travelvictoria.com.au/geelong/facts/, site viewed 07/12/2007
4 Australian Government Bureau of Meteorology, Forecasting the weather,
http://www.bom.gov.au/info/ftweather/page_30.
shtml, site viewed 07/12/2007
5 Australian Bureau of Statistics, 2007 Australia Year Book, Dec 2006
6 M. Edey, The Australian Economy in 2007, Reserve Bank of Australia,
7 March 2007
7 DFAT Australia Fact Sheet, www.dfat.gov.au, site viewed 10/12/2007
8 DFAT Australia Fact Sheet, www.dfat.gov.au, site viewed 10/12/2007
9 Invest Victoria, Economic Overview, www.investvictoria.
com/EconomicOverview site viewed 10/12/2007
10 Department of Treasury and Finance, Victorian Budget Overview 07/08,
May 2007
11 Department of Treasury and Finance, Victorian Budget Overview 07/08,
May 2007
12 Invest Victoria, Economic Overview, www.investvictoria.
com/EconomicOverview site viewed 10/12/2007
13 Invest Victoria, Economic Overview, www.investvictoria.
com/EconomicOverview site viewed 10/12/2007
14 Live in Victoria, Economy, http://www.liveinvictoria.
vic.gov.au site viewed 10/12/2007
15 Invest Victoria, Quick Facts Melbourne, Victoria, Australia,
www.investvictoria.com site viewed 10/12/2007
16 Invest Victoria, Melbourne Transport – Road network,
www.investvictoria.com.au, site viewed 10/12/2007
17 Invest Victoria, Transport Network Melbourne, Victoria, Australia –
Rail transport, www.investvictoria.com, site viewed 10/12/2007.
93

Endnotes continued
18 Victorian Rail Freight Network Review, Switchpoint: The template for rail
freight to revive and thrive, http://www.doi.vic.gov.au/DOI/DOIElect.
nsf/$UNIDS+for+Web+Display/54E33823FAE1EF29CA2573B7001
B1E96/$FILE/RFNR-FinalReport.pdf, site viewed 21/01/2008
19 Department of Infrastructure, Melbourne 2030 Planning
for sustainable growth, October 2002
20 Victorian Competition & Efficiency Commission, “Making the right choices:
Options for managing transport Congestion”, September 2006
http://www.vcec.vic.gov.au/domino/web_notes/vcec/vcecweb.nsf
21 That’s Melbourne, www.thatsmelbourne.com.au, site viewed 10/12/2007
22 Office of the Victorian Premier and Office of the Victorian Treasurer, ‘City
car parking levy to ease congestion’, Media Release, 22 April 2005
23 Office of the Victorian Premier and Office of the Victorian Treasurer, ‘City
car parking levy to ease congestion’, Media Release, 22 April 2005
24 Victorian Competition and Efficiency Commission, Making the right
choices: Options for managing transport congestion, September 2006
25 Left intentionally blank
26 Invest Victoria, Melbourne Transport, www.investvictoria.
com site viewed 10/12/2007 and 21/01/2008
27 Invest Victoria, Melbourne Transport, www.investvictoria.
com site viewed 10/12/2007 and 21/01/2008
28 Port of Melbourne, Channel Deepening Project, Project benefits,
www.channelproject.com, site viewed 21/01/2008
29 Invest Victoria, Transport Network, Melbourne,, Victoria, Australia – Port of
Melbourne and sea transport, www.investvictoria.com, site viewed 21/01/2008
30 Internet World Statistics, http://www.internetworldstats.com/sp/au.htm ,
site viewed 12/12/2007
31 Department of Communications, Information Technology and the
Arts, Information Economy Index 2006, www.dcita.gov.au
32 Invest Victoria, Think Melbourne, Australia for ICT, www.investvictoria.com,
site viewed 12/12/2007
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Commercial in Confidence Expression of Interest Brief

33 Invest Victoria, Australia’s Banking System, www.investvictoria.com,
site viewed 10/12/2007
34 Live in Victoria, Economy, www.liveinvictoria.vic.gov.au site viewed 10/12/2007
35 Blake Dawson Waldron and Invest Australia, Australia: An
Introduction for Investors, 2006/07 edition, September 2006
36 Left intentionally blank
37 Invest Victoria, www.investvictoria.com/Creativity, site viewed 11/12/2007
38 Study Melbourne, www.studymelbourne.com.au, site viewed 11/12/2007
39 Australian Bureau of Statistics, 2006 Census, www.abs.gov.au
40 Australian Bureau of Statistics, Table 05. Labour force status by Sex -
Victoria - Trend, Seasonally adjusted and Original, Labour Force, Australia,
Spreadsheets, Cat no. 6202.0.55.001, site viewed 07/01/2008
41 Australian Bureau of Statistics, Table 05. Labour force status by Sex -
Victoria - Trend, Seasonally adjusted and Original, Labour Force, Australia,
Spreadsheets, Cat no. 6202.0.55.001, site viewed 07/01/2008
42 Australian Bureau of Statistics, Table 05. Labour force status by Sex -
Victoria - Trend, Seasonally adjusted and Original, Labour Force, Australia,
Spreadsheets, Cat no. 6202.0.55.001, SAHA analysis, site viewed 07/01/2008
43 Australian Bureau of Statistics, Table 05. Labour force status by Sex -
Victoria - Trend, Seasonally adjusted and Original, Labour Force, Australia,
Spreadsheets, Cat no. 6202.0.55.001, SAHA analysis, site viewed 07/01/2008
44 Melbourne City Council, Census of Land Use and Employment (CLUE), 2006
45 Victorian Government, Meeting Our Transport Challenges, May 2006, Victoria
46 Metropolis, “About Melbourne, Victoria – one of the world’s most liveable cities”,
http://www.metropolis2007.org/melbourne.php ,site viewed 31/12/2007
47 Invest Victoria, Living in Melbourne, www.investvictoria.
com/LivinginMelbourne, sited viewed 13/12/2007
48 Department of Infrastructure, Melbourne 2030 Planning
for sustainable growth, October 2002
49 Economics Intelligence Unit, “Where the Grass is Greener”, Economist.
com, www.economist.com, site viewed 13/12/2007
50 Business Melbourne, “Why Melbourne”, www.businessmelbourne.com.au,
site viewed 13/12/2007
95

Endnotes continued
51 Australian Bureau of Statistics, 2006 Census QuikStats: Melbourne (Statistical
Division), http://www.censusdata.abs.gov.au/ABSNavigation/prenav/Pop
ularAreascollection=census&period=2006 , site viewed 06/12/2007
52 Australian Bureau of Statistics, 2006 Census QuikStats: Melbourne (Statistical
Division), http://www.censusdata.abs.gov.au/ABSNavigation/prenav/Pop
ularAreascollection=census&period=2006 , site viewed 06/12/2007
53 Australian Bureau of Statistics, Population Diversity in Local Councils in
Victoria: 2006 Census, www.abs.gov.au, site viewed 06/12/2007
54 Melbourne, http://www.melbourne.com.au/
gardens.htm, site viewed 13/12/2007
55 Left intentionally blank
56 Left intentionally blank
57 Bob Larson’s Tennis News, Final 2008 Australian Open Wrap-Up,
http://www.tennisnews.com., site viewed 13/02/2008
58 InfoRally, http://www.inforally.sibiul.ro/formula1-news-9022-melbourne_
expects_higher_gp_attendance.html site viewed 13/12/2007
59 AFL Statistics, www.afl.com.au, site viewed 13/12/2007
60 Melbourne Cup Carnival, “2007 Melbourne Cup Carnival a Spectacular
Success”, http://www.melbournecup.com.au/
melbourne%2Dcup%2Dcarnival/ , site viewed 17/12/2007
61 Cricinfo, Australia v India,
http://content-aus.cricinfo.com/ci/engine/match/291351.html ,
site viewed 22/01/2008
62 Melbourne Comedy Festival, Marketing Report 2007,
www.comedyfestival.com.au, site viewed 17/12/2007
63 Melbourne International Film Festival, About MIFF,
www.melbournefilmfestival.com.au, site viewed 17/12/2007
64 Royal Agricultural Society, http://www.rasv.com.au/
royal_melbourne_show.asp, site viewed 17/04/2008
96
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65 Melbourne International Arts Festival, About Us – Background,
www.melbournefestival.com.au, site viewed 21/01/2008
66 City of Melbourne, Moomba Waterfest,
http://www.melbourne.vic.gov.au/info.cfmtop=23&pg=1541,
site viewed 21/01/2008
67 Melbourne Food and Wine Festival,
http://www.melbournefoodandwine.com.au/www/html/7-home-page.asp
site viewed 21/01/2008
68 Australian Bureau of Statistics, Australia Year Book 2007, Dec 2006
69 Australian Bureau of Statistics, Australian Historical Population Statistics –
Table 18, Cat no 3105.0.65.001, www.abs.gov.au, site viewed 03/01/08
70 Australian Bureau of Statistics, Australian Historical Population Statistics –
Table 18, Cat no 3105.0.65.001, www.abs.gov.au, site viewed 03/01/08
71 Australian Bureau of Statistics, Regional Population Growth, Australia, 1996
to 2006, cat no. 3218.0
72 Department of Infrastructure, Melbourne 2030, 2002
73 KPMG, Population Growth Report 2007, November 2007, synopsis published
on www.kpmg.com.au/default.aspxTabID=214&KPMGArticleItemID=2751
74 Australian Bureau of Statistics, Australian Historical Population Statistics,
Category number 3105.0.65.001, www.abs.gov.au, site viewed 20/12/2007
75 Australian Bureau of Statistics, Series B Projections, 2006,
www.abs.gov.au, SAHA analysis
76 Australian Bureau of Statistics, Regional Population Growth Australia,
Catalogue 321.8.0•2005–06, 27/02/2007
77 Australian Bureau of Statistics, 3201.0 – Population by Age and Sex, Australian
States and Territories, June 2007, www.abs.gov.au, site viewed 20/12/2007
78 Australian Bureau of Statistics, 3201.0 – Population by Age and Sex, Australian
States and Territories, June 2007, www.abs.gov.au, site viewed 20/12/2007
79 Australian Bureau of Statistics, 2007 Year Book Australia, Dec 2006 p130
80 Australian Bureau of Statistics, Australian Demographic Statistics,
June Quarter 2007, Cat no 3101.0, released 4 Dec 2007
81 Australian Bureau of Statistics, 2007 Year Book Australia, Dec 2006 p133
82 Australian Bureau of Statistics, 2007 Year Book Australia, Dec 2006, p134
97

Endnotes continued
83 Australian Bureau of Statistics, 2007 Year Book Australia, Dec 2006, p134
84 City of Melbourne, Suburbs and Precincts, www.melbourne.vic.gov.au,
site viewed 13/12/2007
85 Australian Bureau of Statistics, www.abs.gov.au, site viewed 16/1/2008
86 City of Melbourne, 2001 – 2006 Analysis of Housing and Population
87 City of Melbourne, City Plan 2010, The city of Melbourne in 2005, pg 8
88 Left intentionally blank
89 Left intentionally blank
90 Left intentionally blank
91 Department of Infrastructure, Public Transport, What is SmartBus,
www.doi.vic.gov.au, site viewed 15/01/2008
92 Australian Bureau of Statistics, Motor Vehicle Census 31 March 2007,
www.abs.gov.au, site viewed 18/01/2008
93 Analysis of ABS Motor Vehicle Census 2004-2007 & Population Projections Data
94 Metropolitan Transport Forum Presentation ‘Most Liveable and Best Connected’
95 Victorian Government, Melbourne 2030 – Direction 8 Better Transport
Links, http://www.dse.vic.gov.au/melbourne2030online/content/
policies_initiatives/08a_policy81.html, site viewed 15/01/2008
96 Victorian Government, Melbourne 2030, Australia 2002
97 Luk, James, Olszewski and Piotr, Road and Transport Research,
December 2003
98 Regional Transport Statistics: 2006 Edition, UK Department of Transport
99 EMTA Barometer of Public Transport in the European
Metropolitan Areas, December 2004
100 Left intentionally blank
101 Victorian Competition & Efficiency Commission, ‘Making the right
choices: Options for managing transport Congestion’
102 Left intentionally blank
103 Left intentionally blank
98
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104 Department of Infrastructure, Metropolitan Melbourne Public
Transport Patronage, Official Patronage Series
105 World Factbook of Criminal Justice Systems,
http://www.ojp.usdoj.gov/bjs/pub/ascii/wfbcjaus.txt, site viewed 07/01/2008
106 Australian Public Service Commission, The Australian Experience of
Public Sector Reform, http://www.apsc.gov.au/about/exppsreform3.htm,
site viewed 07/01/2008
107 Australian Public Service Commission, The Australian Experience
of Public Sector Reform, www.apsc.gov.au/about/exppsreform3.htm,
site viewed 07/01/2008
108 Australian Public Service Commission, The Australian Experience
of Public Sector Reform, www.apsc.gov.au/about/exppsreform3.htm,
site viewed 07/01/2008
109 Victoria’s Constitution, Constitution Act 1975,
http://www.parliament.vic.gov.au/const.html, site viewed 07/01/2008
110 Australian Public Service Commission, The Australian Experience
of Public Sector Reform, http://www.apsc.gov.au/about/
exppsreform3.htm, site viewed 07/1/2008
111 The current Minister for Public Transport in Victoria is Ms Lynne Kosky
112 Invest Victoria, Relocation Guide Melbourne, Australia, www.
investvictoria.com, site viewed 08/01/2008
113 Department of Planning and Community Development, Local Government
Victoria, http://www.localgovernment.vic.gov.au/web22/dvclgg.nsf,
site viewed 08/01/2008
114 Human Rights and Equal Opportunity Commission, DDA Guide,
http://www.hreoc.gov.au/disability_rights/dda_guide/ins/ins.html,
site viewed 21/01/2008
115 Australian Government, Attorney-General’s Department,
http://www.ag.gov.au/www/agd/rort+standards)+-
+ILHRD.DOC, site viewed 21/01/2008
116 Department of Infrastructure, Public Transport – Accessible Public Transport in
Victoria – Action Plan 2006-2012, www.doi.vic.gov.au, site viewed 21/01/2008
117 Australian Labor Party, ‘Forward with fairness, policy implementation plan’,
www.alp.org.au/media/0807/msdloploo280.php, site viewed 22/01/2008
99

Endnotes continued
118 Department of Immigration and Citizenship, Visas & Immigration,
http://www.immi.gov.au/skilled/business/456/how-to-apply.htm,
site viewed 21/01/2008
119 Public Transport Division, DOI, ‘Public Transport Partnerships – An Overview
of Passenger Rail Franchising in Victoria’, March 2005
120 Public Transport Division, DOI, ‘Public Transport Partnerships – An Overview
of Passenger Rail Franchising in Victoria’, March 2005
121 Department of Infrastructure, Public Private Partnership Agreements,
http://www.doi.vic.gov.au/DOI/Internet/transport.nsf/AllDocs/19D8E6C7F
444848DCA256E3E00162879OpenDocument, site viewed 17/12/2007
122 Public Transport Division, DOI ‘Public Transport Partnerships – An Overview
of Passenger Rail Franchising in Victoria’, March 2005
123 Yarra Trams, Facts & Figures Our Tram Network, www.yarratrams.com.au,
site viewed 11/01/2008
124 Department of Infrastructure, Tram Accessibility, www.doi.vic.gov.au,
site viewed 22/01/2008
125 Metlink, Accessible Trams, www.metlinkmelbourne.com.au,
site viewed 22/01/2008
126 Yarra Trams, Facts & Figures Our Tram Network, www.yarratrams.com.au,
site viewed 11/01/2008
127 Department of Infrastructure, Public Transport -Tram projects and
programs, www.doi.vic.gov.au, site viewed 23/01/2008
128 Victorian Competition and Efficiency Commission, Making the right
choices: Options for managing transport congestion, September 2006
129 Department of Infrastructure, Tram projects and programs,
http://www.doi.vic.gov.au/DOI/Internet/transport.nsf/AllDocs/C7E281CCF
FC65BFC4A256AE6000FE6BFOpenDocument, site viewed 11/01/2008
130 Department of Infrastructure, Public Transport Facts & Figures,
http://www.doi.vic.gov.au/DOI/Internet/transport.nsf/AllDocs/D189BF23463
1D049CA25721E001CAB3FOpenDocument#Trains, site viewed 14/01/2008
131 Department of Infrastructure, History of Melbourne’s Metropolitan Rail System
and the Adoption of the Underground Rail Loop Concept,
http://www.doi.vic.gov.au/doi/doielect.nsf/2a6bd98dee287482ca256915001cf
f0c/44507f9d12a4406cca25700c0012fe36/$FILE/MURL%20booklet.pdf,
site viewed 14/01/2008
100
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132 Department of Infrastructure, Public Transport – City Loop History,
www.doi.vic.gov.au, site viewed 14/01/2008
133 Department of Infrastructure, Public Transport – Premium Stations,
www.doi.vic.gov.au, site viewed 14/01/2008
134 Department of Infrastructure, Public Transport – Flinders Street Station,
www.doi.vic.gov.au, site viewed 14/01/2008
135 Department of Infrastructure, PASS Assets GIS (DOI public
transport infrastructure information system)
136 Connex Melbourne, Fast Facts,
www.connexmelbourne.com.au/index.phpid=46,
site viewed 14/01/2008
137 Department of Infrastructure, Metropolitan Train Procurement, Update
Report to Project Review Committee, 23 November 2006
138 Left intentionally blank
139 Department of Infrastructure, Train Timetables, Connex and Metlink
websites, sites viewed 14/01/2008
140 Connex Melbourne, Fast Facts, as at October 2007,
www.connexmelbourne.com.au/index.phpid=46, site viewed 14/01/2008
141 Metlink, Metcards, www.metlinkmelbourne.com.au, site viewed 11/01/2008
142 Metlink, Fares, Tickets – Concessions, www.metlinkmelbourne.com.au,
site viewed 16/01/2008
143 Metlink Intelligence Reports, Revenue, Jul-Sep 06 – Apr-Jun07, SAHA analysis
144 Metlink Intelligence Reports, Revenue, Jul-Sep 06 – Apr-Jun 07, SAHA analysis
145 Metlink, Market Intelligence Review, July – September 2007, p17
146 Office of the Victorian Premier, ‘Early Bird to be rolled out across metro
trains’, Media Release, 7 March 2008
147 Metlink, Quarterly Reports, July-September 2006 – April-June 2007
148 Department of Infrastructure, Track Record, Editions 23 (July 2005),
27 (August 2006) and 32 (November 2007)
149 Department of Infrastructure, Track Record, Editions 23 (July 2005),
27 (August 2006) and 32 (November 2007)
101

Endnotes continued
150 Department of Infrastructure, Track Record, Editions 23 (July 2005),
27 (August 2006) and 32 (November 2007)
151 Left intentionally blank
152 Left intentionally blank
153 Department of Infrastructure, Metropolitan Melbourne Public
Transport Patronage, Official Patronage Series.
154 Department of Infrastructure, Train Plan, 29 October 2007
155 Department of Infrastructure, Metropolitan Melbourne Public Transport
Patronage, Official Patronage Series, issued 18 march 2008
156 Department of Infrastructure, Metropolitan Melbourne Public Transport
Patronage, Official Patronage Series, issued 18 march 2008
157 Department of Infrastructure, Metropolitan Melbourne Public Transport
Patronage, Official Patronage Series, issued 18 march 2008
158 Department of Infrastructure, Metropolitan Melbourne Public Transport
Patronage, Official Patronage Series, issued 18 march 2008
159 Caltex, Historical Pricing – Victoria city, www.caltex.com.
au/pricing_his.asp, site viewed 15/01/2008
160 Caltex, Historical Pricing – Victoria city, www.caltex.com.
au/pricing_his.asp, site viewed 26/02/2008
161 Melbourne City Council, Census of Land Use and Employment (CLUE), 2006
162 Reserve Bank of Australia,
http://www.rba.gov.au/Statistics/cashrate_target.html,
site viewed 05/02/2008
163 Office of the Victorian Premier and Office of the Victorian Treasurer,
‘City car parking levy to ease congestion’, Media Release, 22 April 2005
164 State of Victoria, Meeting Our Transport Challenges, Connecting
Victorian Communities, The Plan, May 2006, p55
102
Commercial in Confidence Expression of Interest Brief

165 Media Release from the Minister for Public Transport, ‘Removal of zone 3
means savings for passengers’, http://www.legislation.vic.gov.au/domino/
Web_Notes/newmedia.nsf/b0222c68d27626e2ca256c8c001a3d2d/92cdc0
165023aa5bca257294007b9355!OpenDocument, site viewed 15/01/2008
166 Australian Automobile Association, Petrol Prices,
http://www.aaa.asn.au/issues/petrol.htm, site viewed 23/01/2008
167 Reserve Bank of Australia, Monetary Policy Changes,
http://www.rba.gov.au/Statistics/cashrate_target.html,
site viewed 23/01/2008
168 Department of Infrastructure, Metropolitan Melbourne Public Transport
Patronage, Official Patronage Series, issued 18 March 2008
169 Department of Infrastructure, Connex load standards survey, October 2007
170 Metropolitan Train Fleet Procurement – Stage 1: Business Case
171 Victorian Government, Report on the 2007-08 Budget Estimates –
Part three, P 182,
172 Department of Infrastructure, Yarra Trams load Standards Survey 2007,
Draft 1, Public Transport Division Information Services, December 2007
173 Department of Infrastructure, Annual Reports 1999/00 – 2006/07
174 Yarra Trams and Connex Business Plan Reporting
Templates 2004/05 – 2006/07
175 Department of Infrastructure, Annual Report 2006/07
176 Department of Infrastructure, Annual Reports 2005/06 - 2006/07
177 Metlink, Market Quarterly Report, July – September 2007
178 Department of Infrastructure, Annual Reports 2004/05 – 2006/07
179 Department of Infrastructure, Annual Reports 1999/00 – 2006/078.1
180 Department of Infrastructure, Annual Reports 1999/00 – 2006/07
181 Department of Infrastructure, Annual Reports 1999/00 – 2006/07
182 VicRoads, Think Tram, www.vicroads.vic.gov.au, site viewed 24/01/2008
183 Yarra Trams’ Submission to the VCEC Inquiry into Transport Congestion
184 VicRoads, Think Tram, www.vicroads.vic.gov.au, site viewed 24/01/2008
103

Endnotes continued
185 Department of Infrastructure, Public Transport – Train projects
and programs, www.doi.vic.gov.au, site viewed 17/01/2008
186 Left intentionally blank
187 Department of Infrastructure, 2004 – 2005 Annual Report, Outcome 3
188 Left intentionally blank
189 Department of Infrastructure, Public Transport – Metropolitan rail
network improvements, www.doi.vic.gov.au, site viewed 24/01/2008
190 Department of Infrastructure, Public Transport – Tram projects
and programs, www.doi.vic.gov.au, site viewed 24/01/2008
191 Department of Infrastructure, Public Transport – Metropolitan rail
network improvements, www.doi.vic.gov.au, site viewed 24/01/2008
192 Left intentionally blank
193 Left intentionally blank
194 Left intentionally blank
195 Left intentionally blank
104
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105

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May 2008 © State of Victoria.
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