P R O F I L E
Our vision is to deliver a world class rail network
for the people of New South Wales.
Rail Infrastructure Corporation (RIC) owns and maintains the New South Wales rail network on behalf of the State Government and provides access to passenger and freight operators. It was established on 1 January 2001 as a statutory State Owned Corporation under the Transport Administration Amendment (Rail Management) Act 2000.
RIC is an important member of the rail network. Our customer base comprises SRA, Pacific National, regional freight and heritage operators.
The Corporation’s principal objective is to ensure that the New South Wales rail network enables safe and reliable passenger and freight services to be provided
in an efficient, effective and financially responsible manner. Our vision is to deliver a world class rail network for the people of New South Wales.
C O N T E N T1 OVERVIEW 2 SNAPSHOT OF OUR PERFORMANCE 3 OUR OBJECTIVES 2002/03 4 CHAIRMAN’S REPORT
5 CHIEF EXECUTIVE OFFICER’S REVIEW
7 MANAGEMENT STRUCTURE
8 REVIEW OF OPERATIONS
Building a safer future Building better systems and tools
Building reliability Building capacity Building efficiencies and effectiveness
Building our commercial business capabilities
18 RAIL MAINTENANCE DEFINITIONS SUMMARY
Achievements 2001/02 2 Advanced Train Running Information
and Control System 10 Annual Report exemptions 58
Argus Telecommunications 16 Asset management improvements 14 Audit and investigation 9 Bathurst Rail Fabrication Centre 16 Board of Directors 28 Broadmeadow Train Control Centre 10 Business Services Group 17 CBD Overhead Wiring Project 11 Chairman’s report 4 Chief Executive Officer’s Review 5 Community Service Obligations 71 Consumer response 22 Corporate Governance 26 Cultural changes 21
Detailed budget 25
Directors’ Meetings 27 East Hills Amplification project 12 Easy Access upgrade program 12 Environment protection 22 Equal Employment Opportunity 59 Establishment and Functions of RIC 29 Ethical standards 27 Executive remuneration 60 Financial Report 29-56 Financial review 24 Financial summary 2 Focus for the year 1
Hours of business 72
Hunter Valley 13
Indicating Automatic Signal Section Project 10 Industrial Relations 20 Injury Management Centre 21 Insurance Activities 71 Joint safety initiatives 8
Joint Ventures 17
Land Disposal 62
Letter of submission IFC Level crossing safety upgrades 9 Major plant and equipment upgrades 14 Management structure 7 Metropolitan passenger network 12 Metropolitan Signal Control System 10
Mimir and Hazan 10
Network safety 8
NSW Rail Access Regime Review 71 Objectives 2002/03 3 Occupational Health and Safety 61 On-time-running on CityRail network 11
Overseas visits 62
Parramatta-Chatswood Rail Link 12 Paterson loop extension 13
Port Botany 13
Possessions review project 14 Project management improvement
initiatives (PMII) 15 Properties management 23
Quarries and Ballast Recycling Centre 17
RIC Employee Code of Conduct 63-70
RIC People 19-21
RIC profile IFC
RIC workforce 7
Richmond line duplication 12
Risk management 70
Rolling stock and rail fabrication centres 16
Safety Training 8
Safeworking Rules review project 8 South Coast electrification 12 SPAD reduction programs 9 Speed restriction reduction program 11
Staff wellbeing 21
Track inspection 9
Waste Reduction and Purchasing Policy 71 Workforce planning 20
Workplace safety 8
RAIL INFRASTRUCTURE CORPORATION Annual Report 2002
I N D E X
30 October 2002
The Hon R J Carr MP The Hon M R Egan, MLC
Minister for the Arts Minister for State Development Minister for Citizenship Vice President of the Executive Council
Level 40 Level 33
Governor Macquarie Tower Governor Macquarie Tower 1 Farrer Place 1 Farrer Place
Sydney NSW 2000 Sydney NSW 2000
Dear Premier and Treasurer
Rail Infrastructure Corporation 2001/2002 Annual Report
We have pleasure in submitting for your information and presentation to Parliament Rail Infrastructure Corporation’s Annual Report for the
The New South Wales rail network is a complex
mix of urban, rural, interstate and heavy haul
railways. It consists of 8,700 kilometres of rail
track, more than 5,000 rail and road bridges,
and a signalling and telecommunications system
combining satellite and land-based technology.
The Sydney Metropolitan network is Australia’s
largest. In geographic area, it is one of the
largest in the world.
It is a unique rail system that carries both
passenger traffic and heavy freight and covers
1,760 kilometres of electrified track.
Each weekday, the NSW rail network supports
almost 1,000,000 passenger journeys and
230,000 tonnes of freight movements.
Our focus over the first full financial year
of operation was to merge RAC and RSA
and implement a new business model and
management structure that would support
the environment in which we operate.
At the same time we made a commitment
to our customers and stakeholders to quickly
improve the long-term safety and reliability
of rail infrastructure in New South Wales.
In this regard, and with the advantage of
increased Government funding, significant
S N A P S H O T O F O U R P E R F O R M A N C E 2 0 0 1 / 0 2
Stage 1 of Safeworking Rules Review Project
rules implemented and training completed
for 3,850 workers.
$54 million commitment for new equipment
to enhance safety and efficiency.
Helped to achieve almost 92% peak
on-time-running on CityRail network: the best performance
in several years.
Speed restrictions on four main country lines
reduced by 55% to the lowest level in 10 years.
– East Hills amplification (Stage 2).
– Dapto to Kiama electrification project.
– Duplication of Richmond line between Marayong
and Quakers Hill.
– Dungog-Craven 47 km resleepering project.
– Tahmoor-Bargo 8 km concrete
– Stages 2 and 3 of upgrade of Port Botany freight
$606.5 million spent on maintenance.
Over $5.5 million invested in staff training
and competency development programs resulting
in 13,852 employee training days.
Establishment of RIC College.
Operator and Dept of Transport Funded Capital Projects 14% Access fees from operators 49% Other 16% NSW Government Community Service Obligations 21% Revenue
Financial Summaryfor year ended 30 June 2002
12 months 6 months*
30 June 2002 30 June 2001
Access fees from Operators 561,330 238,951 NSW Government Community Service Obligations 246,625 163,933 Operator and Department of Transport Funded Capital Projects 160,306 82,417
Other 187,369 88,404
Total Operating Revenue 1,155,630 573,705
Infrastructure maintenance and other 906,074 428,444 Operator/Government funded capital projects 160,319 122,165 Network control and communications 77,189 36,520
Continue to reduce workplace OH&S incidents
through improved safety culture and targeted
Deliver an accelerated expanded maintenance
Deliver almost $50 million of savings through
Development of a new possession regime.
Upgrade signal control infrastructure.
Progress regional resleepering projects.
Build staff and organisational capability through
detailed training programs
Expand RIC College to include major regional areas
Extend shared business services to deliver improved
service levels and achieve cost savings for both
RIC and SRA.
C H A I R M A N ’ S R E P O RT
This last year was very significant for Rail Infrastructure Corporation. It saw the completion of the amalgamation of the two former organisations, Rail Access Corporation and Rail Services Australia into one new organisational structure, and the completion of an internal review of the track condition.
The combination of the asset manager and the maintenance provider into a single corporation enabled the organisation to pool its knowledge and its experience. It also facilitated a management review of the condition of the infrastructure and the future programs required to repair and, where necessary, replace vital elements of the network. From this platform of sound infrastructure condition knowledge we were able to discuss with Government our future funding requirements. I am pleased to report that the additional Government funding for maintenance that was provided has given us a secure base for the future. It has also delivered improvement in on-time running and a reduction in train delays and speed restrictions. There was a 20% reduction in passenger train delays on the metropolitan network in 2001/02 compared to the previous year and this improving trend is continuing into the new financial year. In the country, speed
The Board strongly supported management’s view that field equipment needed to be
modernised to improve both safety and productivity and approved the order of a number of large pieces of maintenance equipment. Delivery of these during 2002/03 will underpin safer work practices and improved productivity in future years.
In addition to major plant purchases significant investment has been made in providing updated tools to our maintenance teams to help reduce manual handling incidents.
A fundamental outcome of our review of track condition, and discussions with Government, was the establishment of programs to save in excess of $175 million in one to five years. These programs should generate over $50 million in savings in 2002/03. These savings will pay for expanded maintenance and renewal of rail infrastructure and also represent our commitment to the Government and people of NSW in return for the continuing financial support provided to the railways. Another key focus going forward, which also flows from the amalgamation of RAC and RSA, is the need to improve our systems. The amalgamation allows us to integrate our financial, management and maintenance systems which will substantially
The focus in 2002/03 will be on: A reduction in workers lost time injuries;
Achieving the forecast efficiency savings;
Expanding scope of maintenance programs; and
An improvement in systems On behalf of the Board of Directors, I would like to thank management and staff for their hard work, commitment and contribution to the Corporation’s achievements during the year. The amalgamation and accompanying change placed enormous pressure on many people, and the Board recognises this. The Board feels confident, however, that we now have the platform from which to make the gains required to deliver a world class rail network for New South Wales.
“RIC will be
against the very
that has now
The combination of the asset manager
and the maintenance provider into a single
corporation enabled the organisation to
pool its knowledge and its experience.
I am pleased to report that the steps necessary to merge the structure of Rail Access Corporation and Rail Services Australia were completed during the financial year with the implementation of our new business model in January 2002. The model was developed in conjunction with staff and unions and meets the Government’s principle objective of ensuring that the NSW rail network enables safe and reliable passenger and freight services to be provided in an efficient, effective and financially responsible manner. We have moved from two separate organisations, where one managed the infrastructure and provided access for rail operators while the other carried out on-track maintenance and construction, to a single combined operation. We have built the Corporation with three highly focused operating divisions: Access, Metropolitan and
there are four professional support groups: Finance, People and Performance, Corporate Services, and Strategy and Planning. Our business model reflects the new environment in which we operate with two very large customers, SRA in the metropolitan area and Pacific National in the rail freight market. In the metropolitan area, CityRail operates 2,900 passenger services on a daily basis, while Pacific National operates 208 services each day across the State. In addition to this, a number of smaller freight and heritage operators have access to our network. Establishment of the Metropolitan and the Access Divisions is helping in our commitment to improve safety and reliability. Safety incidents have decreased by 8% and reliability has improved significantly with peak passenger delays caused by infrastructure incidents down
level for over 10 years. Both trends are continuing in the new financial year.
Commercial Division manages a diverse portfolio of businesses which relate to and directly contribute to our core business and also to regional development. Safety Division monitors and audits compliance with our internal safety regulations and those established by our accreditation from the Department of Transport. Of particular significance during the year was the completion of the total review and rewrite of the Network Safeworking Rules. Stage 1 of this process, the newWork on Trackrules, was implemented in November 2001. The Department of Transport (Transport NSW) has endorsed stages 2 and 3 and training in these new rules is currently taking place ahead of implementation at the end of this
“In all areas
C H I E F E X E C U T I V E O F F I C E R ’ S R E V I E Wc o n t i n u e d
The focus of the Projects and Support Division is to gain efficiencies in the management of major infrastructure works. This Division carries out the major rerailing, ballast cleaning, sleeper renewal programs, as well as bridge and signals replacement. In all areas of operation, productivity improved and the results during the first quarter of 2002/03 indicate that even greater efficiency gains are being achieved. In addition, several large items of maintenance equipment have been ordered. These will be progressively delivered during the current financial year, which should lead to further productivity and increased safety levels in the execution of major maintenance works. These, in turn, will also support the expanded scope of maintenance activities.
Following a review of the condition of the network carried out over the past 18 months, the Corporation was able to approach the NSW government for additional funding, which I am pleased to report was granted. Furthermore, the Community Service Obligation funding arrangements were fixed and extended for a period of five years which together with strong access agreements with our two major operators provides the
organisation with a sound financial platform for planning long-term maintenance.
Working very closely with SRA we were also able to re-examine the track possession management system in order to develop plans to streamline this process and minimise disruptions to passenger and freight services. The new
possession regime will be implemented from 1 July 2003. This streamlined possession process together with newly acquired high production maintenance equipment delivered to the field will see a substantial rise in efficiency and productivity in 2003/04 and increased scope delivery. These several new initiatives highlight the importance of long-term planning in rail to ensure both safe and reliable infrastructure is delivered at an efficient cost. None of these changes would have been possible without the full cooperation and involvement of management, staff, unions, SRA and other rail operators, and the NSW Government.
I am pleased to report that the close working relationships that exist with all stakeholders allowed us to deliver the outcomes highlighted in this annual report and I look forward to RIC producing further improvements during 2002/03 and beyond.
RIC has 5,695 employees
Leadership and management of safety across RIC, including operations, infrastructure and workplace safety; safety audit and investigation; accreditation; environmental assurance and quality assurance
Ensure RIC infrastructure is specified and designed to authorised standards Development of asset management systems and frameworks Planning, management and delivery
of Major Periodic Maintenance and Capital Works projects
External contracts IT projects
Management of commercial businesses and joint ventures
Delivery of safe and reliable train paths to freight and country passenger customers Management of the rail infrastructure
assets of the Sydney metropolitan network
John CowlingCHIEF EXECUTIVE OFFICER
Gary SeaburyGENERAL MANAGER
PROJECTS and SUPPORT
Irina WhiteGENERAL MANAGER AND
COMPANY SECRETARY ACCESS
Glen DaweGENERAL MANAGER ENGINEERING
Mike HickeyGENERAL MANAGER FINANCE
Richard Lumley*CHIEF FINANCIAL OFFICER
Karl MociakGENERAL MANAGER
Ken KelmanGENERAL MANAGER
PEOPLE and PERFORMANCE
John CairnsGENERAL MANAGER
STRATEGY and PLANNING
PROJECTS AND SUPPORT
CORPORATE SERVICES ACCESS ENGINEERING FINANCE COMMERCIAL SAFETY
PEOPLE AND PERFORMANCE STRATEGY AND PLANNING
Corporate performance, regulatory and economic management Co-ordination of long-term asset management plans, replacement strategies and major development proposals
IT strategy Strategic management of human
resources Finance and accounting policies,
systems and procedures Budgeting and monitoring of RIC financial management performance Statutory and internal financial reporting
*Appointed 26 August 2002.
Legal counsel, internal audit and corruption prevention Communication management Policies and procedures, insurance Properties
R E V I E W O F O P E R AT I O N S
In the past year, a huge effort has been
directed towards enhancing RIC’s safety
culture and improving safety performance
across the organisation.
Workplace SafetyRIC is enhancing its safety culture through a change process which includes reviewing our approach to OH&S and rail safety risk management, identifying the broader organisational issues influencing safety performance, and providing recommendations for further improvements. In the area of incident management, we are critically analysing all incidents that result in injuries to staff. Understanding the causes of incidents enables corrective and preventative actions to be implemented.
While progress has been made, our lost time injury frequency rate (LTIFR) for the financial year was 32.98 (against a target of no more than 20), although for the month of June 2002 it was less than half of the yearly average. There are pockets of the organisation that are achieving excellent
performances. Mentoring programs are being implemented to extend those performances across the whole organisation. At the same time, excellent safety performances by individuals and teams are being recognised by our Club Zero Awards.
A number of training initiatives have already been developed to improve our overall workplace safety. These include training in the principles of safety management for executive managers, comprehensive WorkCover accredited workshops for supervisors, team leaders and team managers and extensive on-site training in manual handling techniques for our operations staff.
Safeworking Rules Review project
This project is being carried out in three stages.
In November 2001, Stage 1 of the new Safeworking Rules, Work on Trackwas introduced and 3,850 employees were trained in these new procedures. These new rules will help ensure consistent application of the appropriate worksite protection procedures. Stage 2, which covers Systems of Safeworking and Special Working, General Instructions and Train Working Rules, and Stage 3 which relates to Signalling and Signs, received final industry sign-off in June 2002 and were endorsed by the Rail Safety Regulator, Department of Transport (Transport NSW) in July 2002. These will be implemented in December 2002 and will apply to every organisation and entity working on the New South Wales
rail network, including over 11,000 rail industry employees.
These new Network Rules and Procedures were developed after extensive consultation with stakeholders. The risk-based approach adopted within these new rules is consistent with the new OH&S legislation.
Joint safety initiatives
RIC works with all members of the rail family to build improved standards of safety performance across the network. There were several areas of major focus during the year, including Signals Passed At Danger (SPADs), level crossing safety upgrades, and a comprehensive and proactive program of track inspection. A number of joint audits of signal boxes were carried out with SRA.
SPAD reduction and mitigation programs
There was a reduction in the number of SPAD incidents during the year through the
implementation of several ongoing infrastructure initiatives. These include improvements to high priority catchpoints; extension of train stops; installation of advance turnout indicators at priority locations; and provision of infrastructure solutions to metropolitan multi-SPAD locations. In addition, improved driver training programs at SRA are helping to reduce SPAD incidents.
Level crossing safety upgrades
RIC, through the Level Crossing Strategy Council (LCSC), has played a key role in reducing safety risks at level crossings.
This year, with the benefit of increased Government funding, RIC commenced a three-year $12 million program identifying and prioritising 130 level crossings
around the State for safety upgrades.
RIC commenced work on these crossings in July 2001 replacing passive warning mechanisms with active protection such as flashing lights, bells, boom gates, advance warning lights and where appropriate, Graded Crossing Predictors (GCP). The introduction of GCP substantially reduced construction costs and enhanced safety by providing improved awareness and visibility for both the train driver and road users. At the close of this financial year, safety upgrades had been completed at 31 level crossings. During the 2002/03 financial year a further 48 level crossings will be upgraded.
Early this year, higher sensitivity testing of the State’s rail track revealed a number of rail heads with internal cracking, also known as vertical split head (VSH) defects
which previously may have gone undetected.
RIC has a rigorous testing regime in place, which enables us to locate and manage defects in a controlled manner including removing and replacing rail as soon as possible often within 24 hours. RIC is reviewing the details of the recently completed tests to both better understand why these defects occur and to further improve our detection abilities. In addition, track staff has been trained in visual inspection methods and hand ultrasonic testing.
Over the next three years RIC will spend $30 million on the replacement of over 100 kms of track. This is part of a 10-year program that is supported by special funding from the Government.
Glenbrook Inquiry recommendations
In conjunction with SRA and Transport NSW, RIC is progressing actions to implement the interim
and final report recommendations. There has been good progress in the areas for which RIC is directly responsible. These include Safeworking Rules, training and the protection of infrastructure workers, and improved train location indication in automatic areas through the illumination ofdark territorieson the metropolitan network. Work is still required on project plans for significant upgrades to communication and network control.
Audit and investigation
During the year, over 200 hazard audits were conducted and over 80% of the major
non-conformances were reviewed and closed off within six months of the original audit. In addition, 28 reports into Level 2 investigations (major incidents) were completed for Transport NSW.
Indicating Automatic Signal Sections (IASS) Project
This project improves the accuracy in determining a train’s position along a particular line segment removing so-called ‘dark territories’ and reducing the potential of conflicting train movements. IASS has been installed at 18 locations, effectively illuminating the entire metropolitan network.
The data captured on this system is also being utilised to establish technical maintenance plans to further improve system availability and reliability.
RIC is also working closely with SRA to improve network control to enhance safety and reliability. Joint initiatives include:
Metropolitan Signal Control System (MSCS) Project, and ATRICS (Advanced Train Running Information and Control System)
Metropolitan Signal Control System (MSCS) Project
This is a project to modernise existing signal control infrastructure to achieve continual improvements in safety and reliability on the network. It will also provide increased capacity for signal control in the metropolitan area to support projected demands on the network over the next 20 years.
In July, we completed construction of the Sydenham Signal Box. At a cost of $12 million, it contains some of the most advanced computerised signalling technology
available and greatly improves the reliability of train operations. The new centre controls signals for the Bankstown, East Hills, Airport and Illawarra lines as well as goods lines to Port Botany. It also operates as a base for a quick response team of 20 RIC technical staff, who provide 24 hour a day, seven day a week support.
ATRICS: Advanced Train Running Information and Control System
ATRICS provides accurate train timetable information using computer-based signalling technology. It also provides improved incident response times through an automated reporting
process. This is progressively being introduced across the network and has been installed at the Sydenham Signal Box.
Broadmeadow Train Control Centre
As part of a staged upgrade of the northern Network’s
communication, signalling and control, a new $4 million train control centre is being constructed at Broadmeadow. The
Broadmeadow Train Control Centre will be responsible for all rail traffic between Brisbane and
Broadmeadow and west to Dubbo. This new facility will improve the operational efficiency of the network and enhance safety and reliability through the removal of life expired equipment and the upgrade of outdated technologies.
R E V I E W O F O P E R AT I O N Sc o n t i n u e d
During the year a number of technological
initiatives have been implemented to
significantly improve system safety.
Mimir and Hazan
Key systems initiatives included the development of
the knowledge management tools,
uses historical data to help determine
maintenance service schedules and technical plans.
is a complementary tool that allows us to
identify and put in place the consistent controls to
manage hazards associated with maintenance tasks.
It also provides valuable information to cost effectively
manage our assets.
On-time-running (OTR) on the CityRail network during the year averaged almost 92%. This is on target and is the best OTR result in several years. This was achieved through a reduction in infrastructure incidents and minimisation of delays as a result of incidents. Peak period incidents fell by 12% on the previous year and delays were down by 20%. In addition we improved our response time to incidents by 6%.
Several factors and specific initiatives contributed to these improved results.
The proactive approach of frontline staff in identifying and remedying potential defects. Establishment of a Reliability Project Team which focuses on the use of data and analysis to identify initiatives to improve network reliability.
Formation of the Incident Recovery Project to provide faster and safer maintenance response solutions to infrastructure incidents. Formation of the Infrastructure Operations Centre (IOC) to coordinate responses to incidents across the metropolitan network. RIC will build upon the reliability initiatives introduced this year to help provide further gains in OTR performance during 2002/03.
restrictions on the regional network. At year-end, there were 38 speed restrictions on the four main country lines, a reduction of 55% over the previous year. This is the lowest level in almost 10 years. The four main country lines comprise the Main South (Glenlee to Albury), Main North Coast line (Newcastle to Brisbane), which are the busiest long distance rail corridors in Australia, and also Main North-West (Newcastle to Moree) and West (Lithgow-Dubbo) corridors.
RIC and Transport NSW signed a new Community Service Obligation (CSO) line funding agreement in December 2001, which incorporates the additional $80 million each year as an ongoing commitment for a five year period.
upgrade; the $11.2 million upgrade of the Nyngan to Cobar rail line; resleepering the Main North Coast line between Dungog and Craven; and the installation of 30,000 concrete sleepers and 20 kilometres of replacement track on the Main South line between Bargo and Tennessee.
In addition, bridge renewal works are being carried out in the Gunnedah and Moree-Narrabri area and also between Taree and Grafton. Ballast cleaning is being carried out over 55 kilometres on the Main South line.
Several major resleepering projects to further improve reliability on the regional network will be carried out in 2002/03. These include work on the Main North Coast line, and the Parkes to Roto section of the Main
99/00 00/01 01/02
85.4% 89.7% 91.9%
Peak OTR on
metropolitan network (average for year*)
*target: 92% 126 Speed Restrictions on four main country lines (as at 30 June*)
During the year, RIC commenced a two-year
$16 million project to upgrade the overhead
wiring system in the Sydney CBD. The existing
system has been in place for 70 years. To date,
the overhead wiring system between Redfern
Station and Goulburn Street, Sydney, has been
replaced. This is the most heavily used section of
rail infrastructure in the State, with around 2,300
rail services passing through it daily. Further work
on this project is scheduled for October 2002.
Is bounded by Broadmeadow/ Newcastle, Lithgow, Macarthur and Bomaderry. Comprises 1760 km of electrified track. In geographic terms, is one of the world’s largest metropolitan networks. CityRail is RIC’s largest customer.
Provides access to rural, interstate, and heavy haul freight services, and long distance passenger services.
passenger networkIncreasing urban development, especially in the Southern, North Western and Western suburbs of Sydney, will lead to steady growth in passenger traffic.
To lay the platform for this future growth, RIC has progressed or completed several large expansion projects. These include:
East Hills amplification South Coast electrification Richmond line duplication; and Parramatta-Chatswood Rail Link
East Hills amplification:completed in September 2001, this project involved the doubling of tracks from two to four between Turrella and Beverly Hills and a complete rebuild of all the assets in that section. The works covered a total rail corridor distance of 5.6 kilometres and required the widening of three existing road
overbridges, the construction of a new rail bridge, 4,000 metres of retaining walls, and the laying of 37,500 concrete sleepers. Cost of the capital works was $90 million, with an additional $16 million for major periodic maintenance.
South Coast electrification:the electrification of the South Coast line between Dapto and Kiama was completed in October 2001. This $45 million project provides improved service quality and capacity for train services south of Dapto by providing for through services from Sydney and Wollongong.
The scope of works included overhead wiring, power transmission system, substations, associated track changes, bridge and tunnel clearance works and platform alterations to accommodate longer trains. The project also included signalling upgrades from Dapto to Kiama.
Richmond line duplication:in December 2000 the Government allocated $25 million in funding to expedite construction of an additional three kilometres of track between Marayong and Quakers Hill to improve capacity and reliability for the entire Richmond line. Work commenced in April 2001 and also involved installation of overhead wiring and bi-directional signalling on each track;
construction of a new platform and buildings at Marayong station; a new bridge; new footbridges and retaining walls; earthworks, stormwater drainage and landscaping, and power supply upgrade.
The comprehensive construction work was completed in early July this year.
Parramatta – Chatswood Rail Link:
the year saw enormous progress on the largest public transport initiative undertaken in New South Wales, the Parramatta-Chatswood Rail Link. Once complete, the link
will greatly increase capacity to the Main North and Main West lines. Planning approval for the link was issued in February 2002 and in June, the contract for the largest component of the construction work was awarded. The construction work includes the 14 kilometre tunnel and station excavation works between Epping and Chatswood and the installation of track, signalling and
communications systems at a total budget of $858 million.
In an effort to minimise the impact on Lane Cove National Park, the original plan was modified to include a cut and cover tunnel crossing the Lane Cove River. The project has also incorporated very high standards for noise and vibration.
The first stage, Chatswood to Epping with stations at Delhi Road, North Ryde, Macquarie University and Macquarie Park, will be complete by 2008.
Increased government funding has enabled
expansion works to be carried out across the
network to support forecasted passenger
demands and to increase the competitiveness
of rail freight.
R E V I E W O F O P E R AT I O N Sc o n t i n u e d
RIC in conjunction with the SRA, has provided improved
Easy Access facilities at the following CityRail stations via
CityRail’s Station Upgrading Program: Allawah, Caringbah,
Engadine, Katoomba, Regents Park and Wollongong.
Easy Access works are well underway at a further
18 stations in the metropolitan area.
The Corporation has an extensive freight customer base and operates in the coal, grain, minerals, and general freight markets. There are 10 freight operators on the RIC network, including one new operator that started up during the year. Performance has been strong in all freight markets, with the exception of grain. Gross tonne kilometres (GTKs) increased by 8% over the previous year. Coal GTKs increased by 5% and growth of 7% in general freight and minerals arose primarily from new freight flows. These new freight flows included increased container growth through Port Botany, increased volumes on the North Coast, new train movements from the MoreeLink terminal to Sydney and increased aggregate volumes between Shellharbour and Sydney.
Hunter Valley:the Hunter Valley is the world’s largest coal export centre,
with capacity expected to increase from the current 70 million tonnes per annum to over 80 million tonnes over the next four years. During the year, RIC invested $15.3 million on commercial projects to enhance the capacity, safety and reliability of the network in this region. These projects included rerailing, resleepering and bridge renewals between Maitland and Singleton. A major achievement in this regard was the replacement of both the Allandale and Jump-Up Creek underbridges with minimal disruption to our customers’ operations. Port access at Kooragang was improved through commencement of replacement works on Sandgate Junction turnouts, and removal of speed restrictions.
To meet future coal demand requirements, RIC has developed a 10-year business plan which includes capital works and maintenance programs.
During 2002/03 RIC will invest $30 million in this region. Projects include installation of wayside devices, upgrade of Whittingham Junction and Singleton Yard, grade separation at Metford and bridge replacements.
Port Botany:The number of export containers moved by rail increased by 5.5% in 2001/02 and over the past four years has almost doubled. To accommodate this and forecast growth, infrastructure upgrades have been carried out to improve accessibility and capacity. A four-stage program, stage 1 was completed in 2001, and stages 2 and 3 in April, 2002. These works involved the track duplication and upgrading from Marrickville to Cooks River, and bi-directional signalling from Marrickville to Port Botany. The duplication of the existing goods line provides a passing/crossing loop for freight trains travelling to and from Port Botany. This will enable operators
to meet the predicted future increases in container traffic carried by rail into this busy port.
Paterson loop extension:the North Coast corridor experienced 18% freight growth in 2001/02. In order to accommodate future growth and increase competitiveness of rail freight, services are dependent on the number of crossing loops capable of supporting 1,500 metre long trains.
Following comprehensive studies, Paterson was assessed as a priority location for a loop extension and, as a result, the $2.4 million program commenced in May 2002. This extension will not only result in additional train path capacity for Sydney-Brisbane services, but also an increase in revenue and a reduction in travelling times on this busy corridor.
Another eight to ten locations are being considered across the country NSW network for loop extension.
MoreeLink:To develop the rail freight potential of inland New South Wales, RIC is working closely with the Premier’s Department. During the year the new MoreeLink intermodal terminal was opened to generate additional freight on rail. It will also provide a boost for the local community by enhancing the commercial viability of local industry. Over the next 12 months, RIC will focus on initiatives to improve rail freight market share on the Sydney to Melbourne corridor. In particular, we will investigate appropriate resignalling schemes to reduce the current restriction on train headways on this line.
Asset management improvements
A consolidated review of asset management has provided increased knowledge of the assets and the work required to provide sustainable infrastructure performance.
At the routine maintenance level detailed technical maintenance plans are being built on a condition based approach. In the asset renewal area, we are developing new tools that will accurately capture and define asset condition in order to develop optimum replacement strategies.
Possessions review project
A key issue for RIC is maintaining the availability of the metropolitan network while essential
maintenance is carried out. The possessions review project was initiated during the year by
the Coordinator General of Rail. A structured possession program is expected to be implemented from July 2003.
This new possession program will remove the complexity in the current system, improve safety, reduce operational costs, provide greater certainty of possession times and increase productivity and efficiency for all stakeholders by maximising works carried out in a minimum number of possessions.
Major plant and equipment upgrades
During the year, RIC committed $54 million of a planned five-year $92 million major plant and equipment upgrade program. This new plant and equipment will enhance operator safety, reduce costs and limit the time that track is taken out of service for maintenance.
In April, RIC took delivery of a $1.4 million high speed ballast regulator which is being used to carry out multi-purpose resurfacing on the Metropolitan network. This equipment was delivered ahead of schedule and under budget.
Two high-speed tampers, valued at $12 million, are under
construction. The first is scheduled to be delivered in October 2002, and the second in June 2003. This equipment will give us the capacity for concrete turnout tamping and also allow flexibility for plain track tamping in the same possession. A $30 million commitment to new generation ballast cleaning equipment is expected to return savings of at least $3 million per year, by significantly reducing the time taken to ballast clean the network. It will also improve ballast
R E V I E W O F O P E R AT I O N Sc o n t i n u e d
RIC has adopted a multi-faceted approach
to improve network and organisational
efficiencies and effectiveness.
RIC has adopted a multi-faceted approach to improve network and organisational efficiencies and effectiveness. This multi-faceted approach includes:
Asset management improvements
Possessions review project Major plant and equipment upgrades Project management improvement initiatives An on-going War-on-Waste campaign
FA S T FA C T S
recovery rates, and reduce soil and noise pollution. An inspection car providing computer-based track fault detection will be in operation on the network after a three-month trial commencing January 2003. It will provide significant safety and OH&S improvements by minimising the use of foot patrols for track maintenance functions. In addition, various support equipment was ordered, such as tractors, loaders, compressors and forklifts. At year-end most of these items had been delivered and were in operation across the network. A $4.8 million program to refurbish existing ballast cleaners, resurfacing equipment and resleepering equipment is in progress. Our regional in-house facilities are being used wherever possible to carry out this refurbishment program.
A long term plan to upgrade RIC’s fleet of aged support vehicles, both on and off track, was another major focus during the year, with 732 replacement vehicles delivered. We are now planning to
decentralise routine purchasing and fleet support functions through master supply agreements.
Project management improvement initiatives
Considerable work has been undertaken to enhance our project management capabilities as well as integrating project management related systems across the organisation. The objective is to obtain uniformity, consistency and world’s best practice in the way we manage projects.
We are beginning to realise the benefits from this initiative with cost and efficiency savings on several major infrastructure
projects. For instance the use of on-site project management tools on the recent Tahmoor to Bargo concrete resleepering project, together with an effective possession management program, helped bring it in almost 15% under the original budget of $8.9 million.
These project management tools are now being used on several other major regional projects, such as the North Coast Resleepering Project, which commenced in July 2002.
This initiative commenced in February 2002 to achieve two principal objectives: to help RIC become a more efficient organisation and, as a result, channel the money saved back into extra maintenance on the track. The program also sent a clear message to RIC staff and
management to engage in the process of moving the organisation forward. During the year, a series of interactive workshops were held across the state to encourage employee suggestions. Over 800 employees participated in this process which resulted in almost 500 suggestions being received. These were analysed, categorised and allocated to the appropriate members of RIC’s executive team for action. To date over $10 million of savings have been identified with over $1 million already being realised through suggestions that have been actioned.
One of the War on Waste suggestions from staff
was that RIC should recover and reuse redundant
materials left by the track. As a result, 6,000 tonnes
of excess recovered ballast from the Moss
Vale-Unanderra project was reused in the Tahmoor to
Bargo concrete resleepering project. This ballast was
used as bottom ballast and saved around $200,000.
RIC also used all 500 tonnes of recovered ballast
from the Bargo project as capping material, saving
a further $20,000.
Argus Telecommunications manages and maintains
telecommunications services for the NSW rail industry.
Achievements this year include the installation of modern touch-screen technology for voice
communications to the new Broadmeadow Train Control Centre. Along with the Junee Train Control upgrade, this will assist in the standardisation of
communications across the NSW rail freight network.
During the year, Argus played a major role in implementing the NSW Government’s strategy of utilising state owned
communications infrastructure to benefit other Government agencies and the wider community.
In conjunction with the Department of Information Technology and Management and the Department of Education and Training, two TAFE Colleges and seven schools have been connected to the Argus network.
Rolling Stock and Rail Fabrication Centres
RIC has two rail fabrication centres located in regional New South Wales, at Bathurst and Goulburn. Bathurst specialises in points and crossings and welded rail. Goulburn concentrates on rail wagon building and modification.
Bathurst Rail Fabrication
Bathurst’s rail welding plant meets all NSW requirements for welded rail. This centre has undergone a major change over the last year. The workplace has been
reconfigured, and the product range increased. In addition, employees have gained new skills as a result of a cooperation agreement entered into with VAE Aktiengesellschaft, an Austrian company which provides access to its technology for the manufacture of points and crossings.
Investment in plant and equipment and continual improvements in quality and efficiency enabled the points and crossings business to achieve a small profit this financial year.
R E V I E W O F O P E R AT I O N Sc o n t i n u e d
RIC has a diverse portfolio of commercial
businesses, that relate and directly contribute
to the core business and regional development.
Argus Telecommunications Rolling Stock and Rail Fabrication Centres Ballast Quarries and a Ballast Recycling Centre
Business Services Group (shared services) Joint ventures
FA S T FA C T S
Goulburn Rolling Stock and Fabrication
Highlights during the year included: Building of 25 new NDFF ballast wagons and an order placed for a further 25 wagons.
Commencing the painting program for the fleet of 95 NDFF ballast wagons.
Safety modifications to the existing ballast fleet. Renewals of lease agreements for surplus wagons. Surplus wagons have been converted into container-carrying wagons and are providing an alternate source of revenue.
To enhance safety and improve capability, a new $500,000 painting booth was installed. Further equipment purchases are planned
for 2002/03 including the acquisition of a large capacity band saw and new cranes for the facility. An increased focus on safety resulted in a significant reduction in Lost Time Injuries (LTI’s).
Quarries and Ballast Recycling Centre
RIC’s three quarries are located at Bombo, Ardglen and Martins Creek. They provide almost 60% of RIC’s annual ballast requirements. A significant investment has been made to upgrade equipment at the quarries to enhance safety and productivity. RIC spent $6.4 million purchasing four front-end loaders and three dump trucks, which were delivered in April 2002.
Through better coordination of transport and quarry operations, a substantial saving was achieved
per trainload for delivery of ballast from quarry to worksite. All three quarries have maintained their outstanding safety records throughout the year.
Over a six year period, the Ballast Recycling Centre at Chullora has been successful in reducing the volume of material requiring disposal from 40% to less than 1%. By converting used track ballast and other construction waste into reusable products, RIC has exceeded its obligations under the Waste Minimisation Act (1995).
Business Services Group
The Business Services Group (BSG) was established this year to manage a portfolio of RIC business functions and to implement a platform for the future incorporation of SRA business functions.
BSG’s key objectives are to enable business units to concentrate on core operations by taking over a range of administrative tasks; gain process efficiencies; improve customer satisfaction; achieve cost savings; and transform operations to a service excellence business. Current business services include recruitment, IT operations, selected financial operations, and
administrative services. Business
case studies are now being carried out on several other business services being considered for transition to BSG.
RIC is committed to extracting maximum benefit from its joint ventures and all businesses are closely monitored to ensure their strategic fit with RIC’s objectives. These joint ventures were entered into by the former RSA and include:
Track Australia, a joint venture with Plasser Australia Pty Ltd to provide tamping, dynamic track stabilising and ballast regulating services.
The RIC/Thiess Victoria joint venture provides infrastructure maintenance services to Bayside Trains and Swanston Trams in Melbourne.
Transfield/RIC provides electro mechanical services to the mining, power and rail industries.
Rail Fleet Services, a joint venture with Alstom to maintain rolling stock.
Both the Rail Fleet Services and Transfield/RIC joint ventures emerged from the restructure of the former Railways Workshop Division.
R A I L M A I N T E N A N C E D E F I N I T I O N S S U M M A RY
Concrete resleepering involves the full or partial replacement of timber sleepers with concrete. The benefits of concrete are that it lasts 30 years longer than timber, is environmentally friendly and costs the same to produce but requires less maintenance.
Steel sleepers are a less expensive option than concrete and are generally used to replace timber on tracks with light usage.
Tamping is carried out by a machine which lifts track and sleepers while steel prongs vibrate the ballast to pack it down and increase stability. On branch lines, attachments are fitted to back-hoes (tamping heads).
This involves tamping the track to ensure it is level. This results in a smoother ride for passengers and less wear and tear on rolling stock.
The rocks underneath the sleepers and rails.
A ballast cleaner is a machine that lifts the sleepers and rail, scoops up the rocks, cleans out the rubbish and re-lays the ballast. Clean ballast provides greater stability of track and aids drainage.
Building our employees
During the year RIC invested $5.5 million in developing organisational competencies through the delivery of training programs across the entire organisation. These specifically targeted previously identified competencies and are designed to:
align our frontline workers with national competencies strengthen our team leadership and management by focussing on our management
development program develop and implement frameworks to promote the
Corporation’s critical corporate skills such as project
management; asset management; risk management; people and IR management; and financial and capital management
methodologies to monitor our progress in these areas In addition, we have strengthened our planning disciplines to streamline the targeting and administration of training programs. We are also promoting a framework of performance assessment and reward. Knowledge management is being progressed through programs to
retain and grow our knowledge base, establishment of forums for sharing of knowledge, and putting in place the mechanisms to encourage employees to update their knowledge and skills. The RIC College was established in April 2002. This provides the Corporation with the facility to train and develop our employees, for the benefit of the Corporation and the individual.
RIC College, Wagga Wagga campus was officially opened in June. Belmore College has recently been vested to RIC. Additional facilities are planned for Dubbo, Orange, Newcastle, Taree, and the Sydney CBD. The establishment of RIC College represents a
fundamental shift from the previous qualification approach to a competency-based approach. It is a requirement of RIC’s new EBA that we provide all employees with a minimum of 10-days training each year. To facilitate this, we have established a centralised training committee comprising of representatives from our Learning and Development staff across the Corporation and union
In July 2002, the first full corporate training plan was completed. This comprises an analysis of skill gaps throughout RIC and identifies training and competency
development requirements for all employees.
RIC pursued five strategic People and Performance
goals over the year.
in the RIC workforce to meet
Providing direction in
to ensure we have the right people in the right
place at the right time.
to enhance efficiency and effectiveness.
Development of a
that focuses on
effectiveness and efficiency.
O U R P E O P L Ec o n t i n u e d
An increased emphasis on our graduate program resulted in RIC more than doubling its intake of graduates this year, with 80 participating in our three-year program. In addition there are 50 undergraduate students from various disciplines currently gaining valuable on-the-job training and work experience.
Workforce planningDuring the year, the main focus of workforce planning was the filling of RIC’s new structure, development of frameworks for recording data on RIC’s workforce, development of benchmarks to allow analysis of existing and future
workforce needs, and the roll-out of the workforce planning process. The first draft of our Workforce Plan has been completed. Preparation of divisional and business plans is continuing as is separate workforce planning for trade-based streams in infrastructure maintenance. All of these initiatives will result in the completion of the endorsed RIC workforce planning model and process, which will link RIC business planning, budgeting and project planning and enable us to identify critical roles, skills and requirements over the next five years. This plan will play an important role in decisions regarding graduate and apprentice intake and also training initiatives to be implemented.
Under this plan, all key positions in the Corporation will be reviewed on a regular basis in the context of succession analysis
Benchmarking specifications have also been developed for our workforce planning process. This will enable us to compare our programs with various organisations in the private and public sector and to make appropriate modifications and additions to ensure that we are achieving best practice in this area.
Industrial relationsRIC continued to maintain positive relationships with its union partners to build a safe and successful future for the railway industry.
As evidence of this, a major achievement for the year was the negotiation of the first RIC Enterprise Bargaining Agreement (EBA). The negotiations, which commenced in July 2001, resulted in the development of a single agreement to replace the five existing agreements which covered employees in the pre-merged organisations.
A framework of consultation with rail unions, including a single bargaining unit convened by the Labor Council of NSW, and staff representatives were involved in the development of a comprehensive agreement. This has recently been certified by the Australian Industrial Relations Commission.
This agreement addresses a number of major issues aimed at improving
RIC’s capability. These include competency assessment and development aligned to the national competency frameworks, performance management, fatigue management, training and development, and promotion of continuous improvement.
Cultural changeRIC undertook a number of initiatives during the year to promote a culture of efficiency and effectiveness across the
organisation. Programs included the implementation of the RIC senior management cultural development program together with training workshops covering subjects such as communication with team members, trust-based
leadership, and programs specifically designed to increase employees’ understanding of the reasons why this cultural change is necessary to move the organisation forward. The War-on-Waste campaign is an integral part of this cultural change process.
An extensive communication program, reaching all employees, reinforces these initiatives.
Policy and diversity
RIC’s EEO plan ensures the Corporation satisfies and exceeds statutory requirements. This plan incorporates the establishment of a number of new EEO related policies.
With the finalisation of the EBA, 15 identified key policies will be implemented, with full
consultation, by September 2002. The remaining policies will be developed during 2002/03.
Injury Management Centre
RIC’s centralised Injury Management Centre (IMC) was established after RIC took on self-insurance of workers’
compensation two years ago. The IMC handles all claims processing, rehabilitation management and critical incidence response.
During the year, 66% of workers’ compensation claims received were finalised, compared to 35% in the same period last year.
Employee assistance program
Considerable work has been carried out to implement a Health Development Program for RIC staff. RIC regularly conducts Health Fairs in major centres to provide staff with the basic knowledge needed to manage their own health. An Operating Procedures Manual and training program for the management of injuries have been developed inclusive of all the workers’ compensation legislative changes.
Environment protectionUnder its Environment Protection Licence (No. 3142) from the Environment Protection Authority (EPA), RIC has responsibility for the licensed aspects of environmental performance of railway activities. The licence focuses primarily on noise pollution. During the year, RIC conducted a series of licence implementation briefings for RIC management and rail operators to clarify licence obligations. RIC reports regularly to the EPA in line with licence reporting requirements.
During the year, new training and awareness programs were developed to help staff improve environmental risk management skills and heritage awareness. In addition, a general environmental awareness video clip was produced and distributed to all employees. This video clip is also being used in team briefings and new employee inductions.
RIC operates a 24-hour statewide environmental hotline, Greenline, for the community to register environmental concerns, and also to provide support and assistance to RIC staff.
During 2001/02 there were 1,628 environmental concerns registered, compared to 1,250 the previous year. Of these, 953 calls related to RIC’s assets and activities, which is only slightly above the previous year. The majority of concerns related to noise, natural resources such as weeds and vegetation, fencing issues, and graffiti.
Information held on the Greenline database is used to confirm compliance with our Environment Protection Authority (EPA) licence and to identify hotspots. It is also used to develop local and statewide remedial strategies related to noise, weed suppression, and graffiti. An example of this is RIC’s Graffiti Management Program, which supports and is in-line with the Government’s anti-graffiti policy. The program commenced in March, 2001 with a 17-week trial at six metropolitan sites. This program has since been expanded.
E N V I R O N M E N T
RIC is constantly working to enhance its
environmental performance to meet and
exceed community expectations.
One of the requirements of the EPA licence involves
the implementation of a five year Noise Pollution
Reduction Program. Commencing on 1 July 2001,
the program applies to the five highest priority
noise affected lines in the network. These are:
Inner West (Redfern to Auburn)
North Strathfield Junction to Hornsby
Auburn and Merrylands to Penrith
Erskineville Junction to Waterfall
North Shore (Waverton to Hornsby)
Throughout the year, RIC sought to ensure its heritage assets were protected through the preparation of Statements of Heritage Impact for various projects and also through its Section 170 Heritage and Conservation Register and representation on the SRA/Heritage Office liaison committee.
During the financial year, 280 new items were added to RIC’s Heritage and Conservation Register. This Register is electronically available to all RIC employees.
In keeping with RIC’s ongoing support and conservation of rail heritage in New South Wales, donations of old and surplus equipment were made to heritage preservation societies.
Properties managementRIC’s environmental management programs also extend to those properties that we either own or control. Planned and random visits are carried out to all properties to review the environmental status and to identify areas in need of upgrade or replacement.
This proactive approach also serves to raise awareness and environmental standards across the organisation. Remedial works such as the removal of unacceptable waste and other materials were undertaken at several of these properties.
PerformanceRIC’s overall environmental performance has been satisfactory. In March 2002, RIC was fined a total of $50,400, including costs of $18,400, after detection last year of pesticide contaminating waters near the recently reopened
Cowra-Blayney line. Herbicide application procedures and a staff training program have been implemented to help prevent recurrence of similar incidents.
In addition, RIC received several infringement notices from the EPA in relation to unacceptable smoke emissions from RIC vehicles. Our ongoing vehicle replacement program should help to resolve this issue.
The Finance Division provides financial management information to the Corporation and support to our Business Divisions in delivering financial targets and obligations which meet our stakeholders and shareholders expectations and requirements.
The Year Ended 30 June 2002 represented the Corporation’s first full year of operations. The Corporation derived its $1,155.6 million of revenue from four main sources:
Access fees from
operators $561.3 million Funds provided from
operators and Transport NSW for capital
projects $160.3 million Funds from Government to meet our
Obligations $246.6 million Fees from providing
rail related maintenance and construction services to external clients primarily
State Rail $86.4 million Income from miscellaneous sources amounted to $101.0 million.
The loss for the year of
$20.4 million was mainly attributed to external factors impacting on superannuation expenses. Before taking into account the financial effect of the net movement in superannuation of $32.4 million, the Corporation achieved an operating profit of $12.0 million (budget $10.0 million).
The main changes in the Corporation’s Statement of Financial Position as at 30 June 2002 compared to the position as at 30 June 2001 are:
reduction in cash reserves of $42.4 million. The cash reserves were used mainly for the acquisition of property, plant and equipment and construction of infrastructure for commercial purposes ($148.2 million) offset by a net positive cash inflow from operating activities ($109.9 million). The Corporation has sufficient working capital to meet its current obligations as and when they fall due.
reduction in our total equity of $20.4 million was brought about mainly from the impact of a reduction in prepaid superannuation contributions referred to above. The negative performance of our superannuation funds managed and controlled by an external agency has meant that a significant call was placed on prepaid contributions to meet the superannuation liability attaching to defined benefit schemes. This negative performance was consistent with other fund managers operating within Australia and overseas.
The major factor in both the actual 2001/02 and 2002/03 budget actual has been increases in Community Service Obligation (CSO) funding. RIC’s allocation for regional areas has been increased by $80 million during 2001/02 and 2002/03. In addition, the
Metropolitan network is receiving an additional $50 million per annum for 10 years commencing 2002/03.
During 2001/02 RIC received unbudgeted revenues of
$62.2 million relating to Parramatta Rail Link from Government ($37.7 million), station upgrading and OH&S works from SRA ($7.7 million) and third party works impacting infrastructure ($16.8 million). Third party works include level crossings, road bridges and some commercial developments. Similar amounts of expenditure were incurred.
Additional CSO revenue in the metropolitan and regional areas is driving increases in maintenance expenditure for both 2001/02 and 2002/03. In addition, increased expenditure on Major Periodic Maintenance projects will lead to a budgeted operating loss next year. These projects will improve reliability and reduce routine maintenance expenditure in future years and therefore have been brought forward.
Network Control costs will decline in 2002/03 due to vesting of the metropolitan functions
2001/2 2001/2 2002/3 Budget Actual Budget $million $million $million Revenue
Access fees from operators 552.9 561.3 581.5 Maintenance and Construction Services 51.5 86.4 61.9 NSW Government Community Service Obligations 205.2 246.6 283.6 Operator and Department of Transport funded
capital projects 104.3 160.3 74.4
Traction Energy 33.2 29.3 32.0
Telecommunications services 19.6 21.1 28.8 Proceeds from asset sales 5.3 10.5 0.0
Interest 5.0 5.3 2.4
Other 17.5 34.8 39.1
Total Revenue 994.5 1,155.6 1,103.7 Expenditure
Direct Maintenance 564.9 606.5 697.1 Network Control and Communications 77.0 77.2 37.3
Bulk Electricity 35.3 31.3 33.5
Corporate Overheads 55.3 55.2 59.4
Depreciation 49.9 46.7 49.8
Loan Interest 5.8 4.7 7.6
Operator and Department of Transport funded
capital projects 104.3 160.3 74.4
Non Commercial Capital projects 21.3 22.1 50.2 Telecommunications costs 17.4 14.8 23.2 Maintenance and Construction Services 47.3 78.3 54.6
Other 6.0 46.5 65.4
Total Expenditure 984.5 1,143.6 1.152.5 Profit (Loss) from Ordinary activities before Income Tax