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Track Record 41, October to December 2009 - Public Transport ...

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Opera<strong>to</strong>rs who fail <strong>to</strong> meet minimum service levels must provide compensation (in the form of complimentary<br />

tickets) <strong>to</strong> passengers. The compensation applies only <strong>to</strong> passengers holding valid periodical tickets of four<br />

weeks or more who travelled on the service concerned during the month in question. Passengers apply<br />

directly <strong>to</strong> the opera<strong>to</strong>r for the compensation.<br />

V/Line services within each corridor are separated in<strong>to</strong> short-distance and long-distance services, with<br />

passenger compensation assessed and payable separately for the two categories.<br />

Table 12 Service level thresholds for compensation purposes (%)<br />

Punctuality<br />

Reliability<br />

Arrival by 4 minutes,<br />

59 seconds<br />

Arrival by 5 minutes,<br />

59 seconds<br />

Metropolitan trains Metropolitan trams V/Line Passenger<br />

88 77<br />

92 # 80 # 92^<br />

% of timetable delivered 98 98<br />

% of kilometres delivered 98 # 95 # 96<br />

#Measure valid until 29 November <strong>2009</strong><br />

^For long distance V/Line services, on-time arrival is defined as arriving no later than 10 minutes and 59 seconds after the<br />

timetabled arrival time.<br />

6.4 Payments<br />

The details presented in this bulletin on payments for public transport services include:<br />

• Components of the contract payments made by the State <strong>to</strong> the opera<strong>to</strong>rs and major service suppliers for<br />

the services provided;<br />

• Incentive or penalty payments relating <strong>to</strong> performance during a particular period; and<br />

• In the case of metropolitan train and tram opera<strong>to</strong>rs, farebox revenue for the period from 1 <strong>Oc<strong>to</strong>ber</strong> <strong>2009</strong><br />

<strong>to</strong> 26 November <strong>2009</strong> and new ticketing revenue guarantee payments from 30 November <strong>2009</strong> until 31<br />

<strong>December</strong> <strong>2009</strong>.<br />

The incentive and penalty payments are reported on an accrual basis. The magnitude of these payments<br />

(whether an incentive or penalty payment) is capped at $1 million per month for metropolitan trains and at<br />

$500 thousand dollars per month for trams. The figures are not final, as the contracts allow for adjustment in<br />

limited circumstances in later periods. Payments for prior quarters are subject <strong>to</strong> change based on audits or<br />

mitigated performance adjustments.<br />

The new ticketing revenue guarantee payment replaces the farebox distribution that was provided <strong>to</strong> all<br />

opera<strong>to</strong>rs prior <strong>to</strong> 30 November <strong>2009</strong>. The new payment is a result of the introduction of the new Myki<br />

ticketing system and is expected <strong>to</strong> continue for 18 months after the Metcard ticketing system is turned off.<br />

At that time, the franchisees will be entitled <strong>to</strong> farebox distribution under the revenue split arrangements<br />

stipulated in the New Ticketing System Revenue Sharing Agreement.<br />

The new train and tram Partnership Agreements do not include concession <strong>to</strong>p-up payments for the usage<br />

of concession tickets.<br />

All payments are exclusive of GST. Negative figures represent payments by the franchisee <strong>to</strong> the State.<br />

22

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