RailCorp Annual Report 2011-12 - Parliament of New South Wales ...

ANNUAL 

REPORT 

2011–12

LETTER OF SUBMISSION 

31 October 2012 

The Hon. Gladys Berejiklian 

Minister for Transport 

Parliament House 

Macquarie Street 

Sydney NSW 2000 

Dear Minister, 

It is my pleasure to provide for your information and 

presentation to Parliament the Rail Corporation New South 

Wales Annual Report for the year to 30 June 2012. 

The report has been prepared in accordance with the Annual 

Reports (Statutory Bodies) Act 1984, the Annual Reports 

(Statutory Bodies) Regulation 2010 and the Public Finance 

and Audit Act 1983. 

Yours sincerely, 

Rob Mason | Chief Executive

t 

Contents 

Overview 

Overview 3 

Chief Executive foreword 5 

Transport for NSW 6 

Fixing the Trains 7 

Interim management structure 9 

Financial performance summary 12 

Operational performance 15 

Safety 16 

Growth 28 

Assets 32 

Value for money 40 

People 43 

Financial statements 2011-12 47 

Appendices 107 

Index 141

NSW 2021: A plan to make NSW number one again 

NSW 2021 sets the Government’s agenda for change in NSW. 

It is a 10 year plan to rebuild the economy, return quality services, renovate 

infrastructure, restore accountability to government, and strengthen our 

local environment and communities. It replaces the State Plan as the NSW 

Government’s strategic business plan. This plan sets immediate priorities 

for action and guides NSW Government resource allocation in conjunction 

with the NSW Budget. Agencies will identify cost-effective initiatives to 

achieve the goals and targets within the plan. 

The plan has five key strategies: 

1. Rebuild the economy 

2. Return quality services 

3. Renovate infrastructure 

4. Strengthen the local environment and communities 

5. Restore accountability to government. 

Transport for NSW is the lead agency for delivering on the following goals 

and measures: 

Goal 7 – Reduce travel times (private and public transport) 

Goal 8 – Grow patronage on public transport by making it a more 

attractive choice 

Goal 9 – Improve customer experience with public transport services 

Goal 10 – Improve road safety 

Implementing NSW 2021 

There are various mechanisms in place to support the implementation of 

NSW 2021. Localised plans are being put in place through an extensive 

consultation process to help Transport for NSW focus on the transport 

outcomes that matter most in different communities and baseline 

reporting has been established to outline how success is measured. 

Planning and performance management systems ensure accountability 

for delivering on specific components of the plan. Performance is publicly 

reported online, so the NSW community can track its progress, and tabled 

in NSW Parliament in an annual NSW 2021 performance report. 

These processes ensure there is clarity about how the transport cluster is 

contributing to the NSW Government’s vision for transport, and there is 

transparency in the way performance is measured and reported. 

NSW 2021 will be reviewed periodically in consultation with the community, 

and Transport for NSW will work to improve its targets over time as more 

accurate and nationally comparable measures become available. 

2 

RailCorp Annual Report 2011–12

Overview 

Operational Performance 

Chief Executive foreword 5 

Transport for NSW 6 

Fixing the Trains 7 

Interim management structure 9 

Financial performance summary 12 

Operational Performance 3

NSW 2021 

FIVE KEY STRATEGIES 

— 

REBUILD THE 

ECONOMY 

RETURN 

QUALITY 

SERVICES 

RENOVATE 

INFRASTRUCTURE 

STRENGTHEN THE 

LOCAL ENVIRONMENT 

AND COMMUNITIES 

RESTORE 

ACCOUNTABILITY TO 

GOVERNMENT 

4 


Chief Executive foreword 

Overview 

This year was another record 

year for RailCorp with 306 million 

passenger journeys completed 

across the state’s network. CityRail 

on-time running continued to be 

above target with 94.2 per cent of 

peak time trains running to schedule 

for the year. A NSW Commission of 

Audit report released in May 2012 

found that Sydney had the highest 

level of on-time running across 

major cities in Australia and we are 

proud of this achievement. 

This accomplishment reflects 

the record level of investment 

being made to modernise our 

network. For the full year, a capital 

investment of $1.577 billion was 

used to help deliver customers a 

better rail journey. 

One such example was the renewal 

of the Boundary Street bridge 

at Roseville. This project saw 

the removal of one of Northern 

Sydney’s major traffic choke points 

while opening up the possibility of 

future quadrupling of the rail line 

passing over the bridge. 

Another stand out for the year has 

been the introduction of 10 Waratah 

trains into passenger service. The 

introduction of the Waratah trains 

will see 626 carriages added to the 

network over the coming years, 

dramatically modernising the fleet. 

This public private partnership is 

the largest single order of trains in 

Australia and represents about half 

of the current suburban fleet. The 

partnership involves the completion 

of more than 20 infrastructure 

and technology projects as well as 

change management and training. 

In last year’s annual report, I made 

mention of plans to establish an 

integrated transport authority 

Transport for NSW. On 1 November 

2011 those plans came to fruition. 

Transport for NSW is now responsible 

for planning and strategy for all 

modes of transport including rail. 

RailCorp, meanwhile, can now focus 

on customer service, operations and 

maintenance. This is a huge change 

for the organisation and one that 

will directly benefit our customers. It 

is also only the beginning of 

the evolution. 

The NSW Government has released 

a draft Long Term Transport Master 

Plan and a final version will be 

released later this year. It will identify 

the role of each transport mode in 

meeting transport needs over the 

next 20 years. It is of little surprise 

that heavy rail will remain the 

backbone of public transport 

in NSW. 

As highlighted above, patronage 

figures show that more and 

more people are adopting this 

environmentally attractive mode 

of transport. 

In response to this increase in 

demand, capacity increases have 

been rolled out during the reporting 

period. On the Newcastle & Central 

Coast Line alone, an additional 

33,000 seats a week have been 

added to services, many of these 

provided by brand new Oscar trains. 

With a renewed focus on 

our customers, RailCorp has 

worked with Transport for 

NSW to understand what our 

customers want and undertaken 

many initiatives to make these 

expectations a reality. Taking Back 

the Trains was a customer-led 

intervention which saw the interiors 

of trains vandalised by graffiti 

receive patch painting to cover up 

these ugly scars and give customers 

a more pleasant journey experience. 

A major cleaning operation at CBD 

stations during weekend track 

closures also came about as a 

direct result of customer feedback. 

This saw painting, scrubbing and 

cleaning make some of our busiest 

stations look like new again. 

There is not space here to list all of 

the initiatives completed or 

underway to give our customers the 

railway system they deserve, but it 

would be remiss of me not to thank 

all RailCorp employees who are 

striving to transform our organisation. 

With NSW 2021 outlining the 

government’s plan to make 

NSW number one again, staff are 

now dealing with a challenging 

transitionary period as major 

structural changes take place 

at speed. 

Announced by the Minister for 

Transport on 15 May 2012, the 

Fixing the Trains initiative will be the 

largest reform to NSW’s rail network 

in a generation. 

Indeed, by this time next year, 

RailCorp itself will be well on its way 

to transforming into NSW Trains 

and Sydney Trains – two separate 

organisations each focusing on the 

needs of their different customers. 

Full details of this transition are on 

the following pages. 

Rob Mason 

Chief Executive1 

Overview 

5

Transport for NSW 

Transport for NSW has primary 

responsibility for transport 

coordination, transport policy 

and planning, transport services, 

and transport infrastructure. The 

intention is to deliver integrated 

transport planning and service 

delivery, and to consolidate like 

functions, reduce costs and provide 

additional funds for frontline staff 

and services. 

The aim is to put the customer 

at the centre of everything the 

transport portfolio does and to 

make it easier for services to be 

delivered in a seamless way. 

The Rail Services Contract 

between the Director General of 

Transport for NSW and RailCorp 

clearly stipulates the government’s 

expectations for service levels, 

service alterations, community 

consultation, regular service 

reviews, performance standards and 

the handling of complaints. 

The contract in place reflects the 

cooperative approach adopted by 

the Director General and RailCorp 

to deliver a more capable, safe and 

reliable transport network across 

metropolitan, regional and rural 

NSW, and to achieve efficiencies 

and service delivery improvements. 

The new contract being developed 

for 2012-13 builds on this approach, 

establishing clear accountabilities 

and robust governance and risk 

management arrangements. 

TRANSPORT FOR NSW 

Planning, regulation, strategic procurement 

RAILCORP 

Rail operator/maintainer 

System planning 

Asset procurement 

& delivery 

Service design 

Service delivery 

Rail transport 

value chain 

RailCorp functions 

Long term 

rail planning 

Rolling stock 

procurement 

Major capital 

works projects 

Design Authority 

including 

engineering 

standards 

Marketing, 

communications 

strategy and 

branding 

Service specification 

and standards 

including standard 

working timetable 

Network access 

(regulation, planning 

and commercial) 

Customer 

Service 

Operations 

Maintenance 

Support 

› Frontline customer service 

› Customer information 

› Customer amenity 

(cleaning and presentation) 

› Revenue protection 

› Operations planning 

and co-ordination 

› Train operations 

› Network operations and crewing 

› Incident management 

and recovery 

› Asset management 

› Maintenance services 

› Infrastructure renewals 

› Finance 

› Corporate services 

› Reform and business 

performance 

› People and culture 

› Communications delivery 

6 


Fixing the Trains 

Overview 

The organisation needs to change 

the way it works, and the Fixing 

the Trains program will target 

over-complicated processes and 

empower people to take initiative 

and get things done. 

Being more responsive to its 

customers is at the core of RailCorp’s 

commitment to becoming a worldclass 

railway. This is an opportunity to 

get it right. 

On 15 May 2012 the NSW Minister for 

Transport announced the next stage 

in the ongoing improvement process 

for RailCorp – Fixing the Trains. 

RailCorp’s performance has been benchmarked against 

other heavy rail operators around the world. The results are 

clear: there is much room for improvement. 

The transport priority for the 

NSW Government is to deliver 

an integrated, customer focused 

transport system. RailCorp is 

committed to achieving that goal, in 

partnership with Transport for NSW 

and peer transport operators. 

A new beginning 

The Fixing the Trains program is 

about improving customer services 

and building a more efficient 

organisation. The program will lay 

out a road map to help RailCorp and 

its successors achieve its vision of 

being known as Australia’s 

world-class railway. 

There are three key drivers for the 

Fixing the Trains program: 

• A need to become better 

organisations and improve service 

for customers 

• A need to position RailCorp and 

its successors to operate and 

maintain a world-class railway 

• A need to address unsustainable 

costs. 

RailCorp’s customers have made it 

clear that the organisation needs to 

provide cleaner trains and stations 

as well as more reliable and timely 

passenger information. There is also a 

clear need to further improve the time 

it takes for customers to get on and 

off trains at major stations, and have 

staff more visible and ready to help. 

The three major changes are: 

• The creation of two new specialist 

organisations – Sydney Trains 

and NSW Trains – to service the 

different needs of Sydney and 

regional/intercity rail customers 

• Cutting back on back-office 

bureaucracy 

• Creating a specialist cleaning 

subsidiary company to attack 

graffiti and rubbish on trains and 

at stations. 

These are the first steps to better 

position RailCorp to focus on 

delivering improved customer 

service. Further steps will be 

taken through 2012-13 to simplify 

RailCorp’s business, reduce 

bureaucracy and allow the new 

organisations to focus on their 

core purpose of passenger 

service delivery. 

The best train systems in the world 

are focused on the unique needs of 

their customers. In NSW, about 

50 per cent of customers travel less 

Overview 

7

than 30 minutes. They need quick, 

frequent and reliable trains. Intercity 

and regional customers, on the 

other hand, travel longer distances. 

They need comfortable services, 

with on-board facilities. 

Currently RailCorp tries to service 

both city and regional and intercity 

customers and, as a result, neither 

customer group receives the 

services they deserve. 

The establishment of the two new 

specialist organisations will address 

this problem. 

• Sydney Trains will operate quick, 

frequent and reliable trains in the 

greater Sydney suburban area 

• NSW Trains will operate train 

services that are focused on the 

needs of regional and intercity 

customers. 

Sydney Trains will also operate 

and maintain the existing RailCorp 

network and provide maintenance 

services to NSW Trains. Both 

organisations will operate under 

a Rail Services Contract with 

Transport for NSW. 

Cleaner trains 

In order to improve customer service, 

train and station cleaning functions 

are being restructured. Customer 

satisfaction surveys reveal cleanliness 

of trains is the biggest issue, with 

only 46 per cent of customers happy 

with the state of train carriages. As a 

result, RailCorp plans to move more 

than 800 employees in Presentation 

Services to a new subsidiary 

organisation to help facilitate 

improvements in cleaning standards 

on trains and at stations. 

This will free them from the 

bureaucracy of the RailCorp 

organisation and allow appropriate 

management processes and systems 

to be externally sourced to better 

support cleaning staff in their jobs. 

New performance benchmarks will 

be applied to cleaning through a 

transparent Service Level Agreement 

– to drive the types of quality 

outcomes that customers demand. 

Operator-maintainer focus 

RailCorp’s construction, major 

projects and engineering design 

responsibilities are moving to 

Transport for NSW to integrate 

them with the rest of that 

organisation’s responsibilities for 

planning and delivering major 

upgrades to the rail network. 

FOCUSING ON OUR CUSTOMERS 

RAILCORP 

MOVES TO TRANSPORT FOR NSW 

TRANSPORT FOR NSW 

System planning 

Shared services 

Major asset procurement and 

delivery/design authority 

Service design 

› System planning 

› Shared services 

› Major asset procurement and 

delivery/design authority 

› Service design 

SYDNEY TRAINS 

NSW TRAINS 

SERVICE DELIVERY 

Customer service 

Operations 

Maintenance and minor asset 

procurement and delivery 

Corporate 

› Customer service 

› Maintenance 

and minor asset 

procurement and 

delivery 

› Operations 

› Corporate 

› Customer service 

› Operations 

(trains) 

› Corporate 

TRANSPORT CLEANING SERVICES 

RAILCORP (Asset owner) 

8 


Up to 250 positions in the major 

capital work projects area, 

engineering design authority and 

network access will be moved 

to Transport for NSW. That will 

allow the remainder of RailCorp 

to concentrate on operating and 

maintaining the rail system. 

Streamlining management 

Existing RailCorp groups have 

been streamlined to reduce the 

number of direct reports to the 

Chief Executive from 11 to eight. 

The Engineering and Projects 

Group will fold into the Maintenance 

Group once functional transfers to 

Transport for NSW are complete. 

project critical. It has not affected 

customer-facing staff. 

The focus is on simplifying decisionmaking 

processes and management 

structures to make NSW railways 

easier and more efficient to operate. 

Meeting future challenges 

Overview 

Focusing on the customer 

Passenger numbers are forecast to 

A new Customer Service 

Directorate was created on 1 July 

2012 in RailCorp to drive focus 

on improvements to customer 

service across the organisation. 

The Directorate will work closely 

with Transport for NSW’s Customer 

Experience division to translate 

customer insights and service 

standards into tangible customer 

service improvements. 

Reducing bureaucracy 

To help speed up decision-making, 

RailCorp is tackling bureaucracy 

and simplifying core processes. It 

is also offering up to 750 voluntary 

separation packages to managerial, 

supervisory and support roles to 

streamline the organisation. 

To ensure there is no impact on 

service delivery to customers, 

increase by 50 per cent over the 

next 25 years and being able to 

meet their demands sustainably will 

be no easy task. 

Tackling middle management 

inefficiency and bureaucracy is just 

the first step. All areas of RailCorp 

need improvement. Customers 

expect better services; NSW 

taxpayers expect better value 

for money. The Fixing the Trains 

the current voluntary separation 

program is all about progressively 

program has not been extended 

implementing measures to deliver 

to frontline service positions and 

on these expectations. 

positions identified as business or 

INTERIM MANAGEMENT STRUCTURE AS AT 1 July 2012 

The interim management structure 

is the first step in a series of changes 

towards the establishment of the 

new organisations – Sydney Trains, 

NSW Trains and Transport Cleaning 

Services – announced by the Minister 

for Transport on 15 May 2012. 

Chief Executive 

Rob Mason 

BSc (Hons), MBA 

Director 

Customer Service 

Liz Ward, MBA 

Director Operations 

Anthony Eid 

PSM 

Director Maintenance 

Gavin Campbell 

BMechEng, MBA 

Director 

Engineering & Projects 

Philip Pearce 

BEng (Hons), CEE 

Director Safety, 

Environment, Quality & Risk 

Clare Kitcher 

BSc (Hons), CFSIA, CPRM, 

CMIOSH, MIRO 

Director 

People & Change 

John Cairns 

LLB (Hons), BCom (Hons) 

Director Finance & 

Corporate Services 

Gary Pedersen 

BEc, MCom, FCPA 

Director Reform & 

BusinessPerformance 

David Callahan 

BA, MBA, GAICD 

Overview 

9

SYDNEY TRAINS 

Sydney Trains Network 

Dungog 

Wirragulla 

Wallarobba 

Hilldale 

Martins Creek 

Paterson 

Mindaribba 

Telarah 

Maitland 

High Street 

East Maitland 

Victoria Street 

Metford 

Thornton 

Beresfield 

Tarro 

Hexham 

Sandgate 

Warabrook (University) 

Waratah 

Scone 

Aberdeen 

Muswellbrook 

Singleton 

Branxton 

Lochinvar 

Greta 

Awaba 

Dora Creek 

Morisset 

Wyee 

Fassifern 

Booragul 

Teralba 

CockleCreek 

Cardiff 

Kotara 

Adamstown 

Broadmeadow 

Hamilton 

Wickham 

Civic 

Newcastle 

Warnervale 

Wyong 

Tuggerah 

Ourimbah 

Lisarow 

Niagara Park 

Narara 

Map full network grid 440x317 (A3 oversize) May 2012 

Lithgow 

Zig Zag 

Bell 

Mount Victoria 

Blackheath 

Medlow Bath 

Katoomba 

Leura 

Wentworth Falls 

Bullaburra 

Lawson 

Hazelbrook 

Woodford 

Linden 

Faulconbridge 

Springwood 

Valley Heights 

Warrimoo 

Blaxland 

Glenbrook 

Lapstone 

Key 

Sydney Trains 

NSW Trains 

Some services operate over 

shared lines. 

Emu Plains 

Peak hours 

only 

Weekends and selected weekday services 

Penrith 

Transport interchanges 

Interchange between CityRail services 

Bus (including bus transitways) 

Ferry wharf near station 

Monorail stop near station 

Tram 

Coach 

Sydney Airport 

Car park near station 

Kingswood 

Richmond 

East Richmond 

Clarendon 

Windsor 

Mulgrave 

Vineyard 

Werrington 

St Marys 

Mount Druitt 

Rooty Hill 

Leppington 

Edmondson Park 

Riverstone 

Schofields 

Doonside 

South West rail link 

under construction 

Quakers Hill 

Cabramatta 

Warwick Farm 

Liverpool 

Glenfield 

Macquarie Fields 

Marayong 

Seven Hills 

Toongabbie 

Leumeah 

Campbelltown 

Pendle Hill 

Wentworthville 

Casula 

Macarthur 

Yennora 

Fairfield 

Canley Vale 

Ingleburn 

Minto 

Stations with wheelchair access 

Wheelchair access 

Mittagong 

(staffed for all train services) 

Wheelchair access 

Bowral 

(not staffed for all train services) 

Burradoo 

Assisted access (May be accessible 

Moss Vale 

with help from a friend or carer. 

Exeter 

Please check prior to travel.) 

Bundanoon 

Penrose 

Wingello 

Tallong 

Marulan 

Goulburn 

Tahmoor 

Bargo 

Blacktown 

Westmead 

Guildford 

Yerrinbool 

Parramatta 

Harris Park 

Merrylands 

Holsworthy 

North West rail link 

under development 

Carlingford 

Granville 

Carramar 

Villawood 

Leightonfield 

Chester Hill 

Sefton 

East Hills 

Telopea 

Dundas 

Rydalmere 

Camellia 

Rosehill 

Panania 

Birrong 

Auburn 

Revesby 

Clyde 

Yagoona 

Some Southern Highlands services 

operate directly to and from Central. 

Menangle Park 

Menangle 

Douglas Park 

Picton 

Cudgegong Road 

Berala 

Regents Park 

Bankstown 

Padstow 

Olympic 

Park 

Lidcombe 

Punchbowl 

Riverwood 

Cheltenham 

Narwee 

Meadowbank 

Concord West 

North Strathfield 

Flemington 

Wiley Park 

Normanhurst 

Thornleigh 

Pennant Hills 

Beecroft 

Eastwood 

Denistone 

West Ryde 

Lakemba 

Beverly Hills 

Epping 

Rhodes 

Homebush 

Belmore 

Kingsgrove 

Strathfield 

Campsie 

Bexley North 

Hornsby 

Burwood 

Croydon 

Canterbury 

Bardwell Park 

Berowra 

Macquarie 

University 

Hurlstone Park 

Turrella 

Dulwich Hill 

Sutherland 

Gerringong 

Berry 

Bomaderry (Nowra) 

Mount Kuring-gai 

Mount Colah 

Hawkesbury River 

Asquith 

Waitara 

Wahroonga 

Warrawee 

Turramurra 

Pymble 

Gordon 

Killara 

Lindfield 

Roseville 

Chatswood 

Artarmon 

St Leonards 

Wollstonecraft 

Waverton 

Sydney Harbour 

North Sydney 

Milsons Point 

Circular Quay 

Macquarie Park 

North Ryde 

Ashfield 

Summer Hill 

Lewisham 

Petersham 

Stanmore 

Newtown 

Macdonaldtown 

Marrickville 

Tempe 

Wolli Creek 

Arncliffe 

Banksia 

Rockdale 

Kogarah 

Carlton 

Allawah 

Hurstville 

Penshurst 

Mortdale 

Oatley 

Como 

Jannali 

Cowan 

Hawkesbury 

River 

Wondabyne 

Redfern 

Erskineville 

St Peters 

Loftus 

Engadine 

Heathcote 

Waterfall 

Helensburgh 

Otford 

Stanwell Park 

Coalcliff 

Scarborough 

Wombarra 

Coledale 

Austinmer 

Thirroul 

Bulli 

Woonona 

Bellambi 

Corrimal 

Towradgi 

Fairy Meadow 

North Wollongong 

Wollongong 

Coniston 

Gosford 

Point Clare 

Tascott 

Koolewong 

Woy Woy 

Wynyard 

Central 

Sydenham 

Lysaght 

s 

Unanderra 

Kembla Grange Racecourse 

Dapto 

Albion Park 

Oak Flats 

Dunmore (Shellharbour) 

r) 

Minnamurra 

Bombo 

Kiama 

Town 

Hall 

Green Square 

Mascot 

International 

Airport 

Martin Place 

St James 

City 

Circle 

Domestic Airport 

Botany Bay 

Kirrawee 

Gymea 

Miranda 

Caringbah 

Woolooware 

Cronulla 

Cringila 

Port Kembla North 

Port Kembla 

Museum 

N 

Station access 

fee applies at 

these stations 

Kings Cross 

Edgecliff 

Bondi 

Junction 

Sydney Trains will provide services on the network bounded by Berowra, Richmond, Emu Plains, Macarthur and 

Waterfall. It will provide quick, frequent and reliable trains. It will also be responsible for network operations and 

maintenance of the metropolitan rail system. 

10 


NSW TRAINS 

Overview 

NSW CountryLink Trains Network 

train and coach 

Tenterfield 

Bolivia 

Deepwater 

Roma Street (Brisbane) 

Queensland 

New 

South 

Wales 

Kyogle 

Casino 

Mooball 

Northern Rivers 

Lismore 

Goonellabah 

Wollongbar 

Bexhill 

Alstonville 

Murwillumbah 

Clunes 

Woodburn 

Beenleigh 

Burringbar 

Eltham 

Robina 

Binna Burra 

Bangalow 

Woombah 

Gold Coast 

Surfers Paradise 

Burleigh Heads 

Palm Beach 

Tweed Heads 

South Tweed Heads 

Chinderah 

Kingscliff 

Bogangar 

Hastings Point 

Pottsville 

Billinudgel turnoff 

Ocean Shores turnoff 

Brunswick Heads 

Mullumbimby 

Byron Bay 

Suffolk Park 

Lennox Head 

Ballina 

Ballina West 

Wardell 

Broadwater 

Evans Head 

Iluka 

Broken Hill 

Upper West 

Menindee 

Lower West 

Wilcannia 

Emmdale 

Darnick 

Bourke 

Cobar 

Griffith 

Ivanhoe 

Euabalong 

Lake Cargelligo 

Tullibigeal 

Byrock 

Boppy Mountain 

Euabalong West 

Ungarie 

West Wyalong 

Yenda 

Binya 

Hermidale 

Condobolin 

Wyalong 

Barellan 

Derriwong 

Barmedman 

Ardlethan 

Brewarrina 

Gongolgon 

Coolabah 

Beckom 

Ootha 

Yarrabandai 

Ariah Park 

Girilambone 

Nyngan 

Bogan Gate 

Forbes 

Nevertire 

Alectown 

Grenfell 

Parkes 

Warren 

Trangie 

Peak Hill 

Temora 

Eugowra 

Narromine 

Tomingley 

Bumbaldry 

Stockinbingal 

Walgett 

Coonamble 

Central West 

Manildra 

Cudal 

Canowindra 

Cowra 

Koorawatha 

Bendick Murrell 

Young 

Lightning Ridge 

Gulargambone 

Gilgandra 

Eumungerie 

Dubbo 

Geurie 

Wellington 

Molong 

Mandurama 

Lyndhurst 

Woodstock 

Harden 

Carcoar 

Stuart Town 

Yass Junction 

Dundee 

Chatsworth Island Clarence River 

Maclean 

Moree 

Glen Innes 

Tyndale 

Warialda Rail 

Gilgai 

Glencoe 

Cowper 

North West 

Ulmarra 

Bellata 

Bingara 

Tingha 

Llangothlin 

Grafton 

Burren Junction Wee Waa 

Cobbadah 

Bundarra 

Guyra Northern 

Coffs Harbour 

Narrabri 

Barraba 

Yarrowyck 

Tablelands 

Sawtell 

Upper Manilla 

Armidale 

Urunga 

Manilla 

Nambucca Heads 

Uralla 

Macksville 

Boggabri 

Attunga 

Walcha 

Eungai 

Baradine 

Walcha Road 

Kempsey 

Hastings River 

Gunnedah 

Kootingal 

Wauchope 

Port Macquarie 

Coonabarabran 

Tamworth 

Kendall 

North Coast 

Werris Creek 

Taree 

Binnaway 

Quirindi 

Hallidays Point turnoff 

Mendooran 

Coolah 

Willow Tree 

Wingham 

Tuncurry 

Mt George 

Murrurundi 

turnoff Forster 

Burrell Creek 

Dunedoo 

Scone 

Forster Keys 

Gloucester 

Krambach 

Craboon Junction 

Tiona Park 

Gulgong 

Aberdeen 

Belbora 

Pacific Palms 

Mudgee Town 

Stratford 

Mudgee Station 

Craven 

Smiths Lake turnoff 

Lue 

Muswellbrook 

Wards River 

Stroud Road Bungwahl 

Rylstone 

Rylstone Hospital 

Dungog 

Kandos 

Stroud 

Bulahdelah 

Charbon 

Booral 

Singleton 

Nerong 

Clandulla 

Allworth turnoff 

Orange 

Blayney 

Lucknow 

Spring Hill 

Millthorpe 

Bathurst 

Central 

Tablelands 

Kelso 

Raglan 

Tarana 

Oberon 

Yetholme 

Hampton 

Southern 

Tablelands 

Gunning 

Ilford 

Running Stream 

Capertee 

Ben Bullen 

Cullen Bullen 

Portland East 

Portland 

Meadow Flat 

Good Forest 

Mt Lambie 

Rydal 

Hartley 

Little Hartley 

Bundanoon 

Biniguy 

Gravesend 

Warialda 

Delungra 

Wallerawang 

Lithgow 

Mt Victoria 

Campbelltown 

Mittagong 

Bowral 

Moss Vale 

Goulburn 

Exeter 

Mt Russell 

turnoff 

Maitland 

Hunter 

Inverell 

Katoomba 

Penrith 

Blacktown 

Parramatta 

Limeburners 

Creek 

Burrawang 

Strathfield 

Robertson 

Illawarra 

Bomaderry 

Raymond Terrace 

Newcastle 

Broadmeadow 

Fassifern 

Wyong 

Gosford 

Hornsby 

Dapto 

Albion Park 

Gibraltar Range 

Jackadgery 

Tea Gardens turnoff 

Karuah 

Sydney 

(Central) 

Wollongong 

Central 

Coast 

Port Kembla 

Lake Illawarra 

Tea Gardens 

Hawks Nest 

Port Hunter 

Sydney Harbour 

Botany Bay 

Palmers Island 

Port Stephens 

Yamba West 

Yamba 

CL all network May 2012 400x350 plus 10mm bleed 

Sunraysia 

Mildura 

Robinvale 

Buronga 

Victoria 

Euston 

Balranald 

Hay 

Deniliquin 

Blighty 

Carrathool turnoff 

Darlington Point 

Whitton 

Leeton 

New South Wales 

Mathoura Tocumwal 

Moama Barooga 

Echuca 

Finley 

Jerilderie 

Cobram 

Yarrawonga 

Berrigan 

Mulwala 

Urana 

Yanco 

Narrandera 

Grong Grong 

Matong 

Ganmain 

Coolamon 

Lockhart 

Junee 

Tumblong 

Wagga Wagga 

Riverina 

The Rock South 

Henty West 

Culcairn Slopes 

Corowa 

Howlong 

Albury 

Wangaratta 

Benalla 

Southern Cross (Melbourne) 

Port Phillip Bay 

Wallendbeen 

Cootamundra 

Muttama 

Coolac 

Gundagai 

Tumut 

Adelong 

Wondalga 

Batlow 

Laurel Hill 

Tumbarumba 

Victoria 

Galong 

Binalong 

Bowning 

Yass 

Murrumbateman 

Canberra Civic 

Snowy 

Mountains 


ACT 

Canberra 

Tarago 

Jervis Bay 

Bungendore 

Queanbeyan 

Canberra John James Hospital 

Canberra Hospital 

Batemans Bay 

South 

Michelago Coast 

Bredbo 

Cooma 

Nimmitabel 

Bemboka 

Bega 

Bibbenluke 

Wolumla 

Bombala 

Merimbula 

Pambula 

Eden 

Twofold Bay 

N 

Bus services 

Rail services 

© RailCorp May 2012 

Map not to scale 

NSW Trains will operate what were CountryLink and Intercity services. These services will have a focus on comfort, as 

well as onboard facilities. 

Overview 

11

Financial performance summary 

For the 2011–12 year, RailCorp generated $1.113 billion 

income from operating activities, while incurring expenses 

of $3.825 billion operating the business, recording a 

deficit from operations before government support of 

$2.712 billion. 

Government contributions towards 

the day-to-day operations of 

RailCorp were $1.735 billion, giving 

an operating deficit of $977 million 

for the year. Government and other 

contributions towards RailCorp’s 

capital investment program totalled 

$1.396 billion and, after treating this 

as income for the year, RailCorp 

recorded a surplus of $419 million. 

Income was $1.113 billion, which rose 

this year by $99 million or 9.8 per 

cent, being driven by an increase 

in passenger and non-passenger 

revenue on the previous year. 

Income from operating activities 

was $34 million higher than budget. 

CityRail passenger revenue was 

$14 million higher than budget 

primarily due to sustained 

patronage growth above 

expectations, including a strong 

response to the removal of station 

Capital expenditure 

$ million 

1200 

900 

access fees for Airport Link stations 

at Green Square and Mascot. 

CountryLink passenger revenue was 

also $5 million higher than budget. 

The operating budget for 2012-13 

is a surplus of $604 million. This 

consists of income from operating 

activities of $1.151 billion (including 

$801 million from passenger 

services revenue) and total expenses 

including depreciation and finance 

costs of $3.820 billion. Government 

contributions towards operating and 

capital expenditure are $1.675 billion 

and $1.598 billion respectively. 

Total expenses for the year were 

$3.825 billion, an increase of 

$323 million or 9.2 per cent on the 

prior year. 

600 

300 

748 734 

1043 

1119 

1163 

0 

Budget 

2007-08 2008-09 2009-10 

Years 

2010-11 2011-12 

The surplus for the 2011-12 year of 

$419 million was $515 million higher 

than original budget. Government 

contributions towards operating 

expenditure were $3 million higher 

than budget and contributions 

towards capital expenditure 

were $588 million higher than 

original budget. During the year 

additional capital funding was 

allocated to RailCorp following 

the amalgamation of the former 

Transport Construction Authority 

into TfNSW. 

Maintenance 

$ million 


Maintenance expense 

Capitalised maintenance 

203 200 

210 

172 

183 

600 

908 911 

816 

734 756 

0 

2007-08 2008-09 2009-10 2010-11 2011-12 

Years 

12 


Capital investment 

RailCorp’s capital expenditure in 

2011-12 increased by 3.9 per cent 

to a record $1.163 billion 

($1.119 billion 2010-11). In addition, 

a further $200 million of major 

periodic maintenance was 

capitalised. RailCorp also recognised 

leased assets totalling $214 million 

having accepted nine sets of 

Waratah rolling stock during the 

year. This gave a total capital 

investment of $1.577 billion for 

2011-12 ($1.351 billion in 2010-11). 

Capital investment 

2011-12 capital investment, by program $ million 

Clearways 216 

Outer Surburban Cars - tranche 3 136 

Waratah rolling stock - enabling and ancillary works 107 

Traction Supply Upgrade (Waratah A-Sets) 72 

Digital Train Radio System 38 

Lidcombe to Granville Corridor Upgrade 36 

Automatic Train Protection 27 

Easy Access 22 

Other capital programs 509 

Overview 

Capital expenditure 1163 

Capitalised maintenance works 200 

Leased assets under Private Public Partnership 214 

Total capital investment* 1577 

* Includes programs delivered by TfNSW such as the North West rail link 

RailCorp finance at a glance 

Finance 2007-08 2008-09 2009-10 2010-11 2011-12 

$ million 

Passenger services revenue 623.0 660.8 693.3 703.5 766.2 

Other income 286.0 277.3 267.2 310.7 347.0 

Income from operating activities 909.0 938.1 960.5 1014.2 1113.2 

Total expenses 2684.4 3072.7 3225.9 3502.5 3825.4 

Deficit from operations before 

government contributions -1775.4 -2134.6 -2265.4 -2488.3 -2712.2 

Government subsidies and concessions 1496.6 1466.8 1605.8 1638.0 1734.7 

Deficit from operations before capital 

contribution -278.8 -667.8 -659.6 -850.3 -977.5 

Government and other contributions 

for capital expenditure 572.8 932.0 710.8 872.8 1396.6 

Surplus for the year 294.0 264.2 51.2 22.5 419.0 

Cost and revenue per journey 

Finance 2007-08 2008-09 2009-10 2010-11 2011-12 

$ 

Cost per passenger journey 9.42 10.46 11.09 11.82 12.52 

Revenue per passenger journey 2.19 2.25 2.38 2.37 2.51 

Overview 

13

14 


Operational 

performance 


SAFETY 16 

A safe railway, a safe workplace, a safe culture 

CUSTOMER 21 

RailCorp puts the customer at the centre of everything 

it does 

GROWTH 28 

RailCorp will work with Transport for NSW to assure its 

growth program provides for sustainable capacity and 

service improvement 

ASSETS 32 

Effective management and stewardship of assets 

Heritage 36 

Environment 38 

VALUE FOR MONEY 40 

The organisation is managed in a financially 

sustainable way 

PEOPLE 43 

A customer-focused workforce that is empowered, 

accountable, committed and proud of its achievements 


Safety 

Objective: A safe railway, 

a safe workplace, a safe 

culture. 

The safety of all who use its services remains RailCorp’s top 

priority. That means the safety not only of customers, but 

also employees, contractors and the community. 

RailCorp has implemented a comprehensive Safety 

Management System to foster an environment that improves 

safety for the long term. This is part of the organisation’s 

ongoing commitment to meeting and, in many cases, 

exceeding the regulatory and statutory requirements. 

Key strategies to achieve the 

objective: 

• Work with and involve all 

employees in creating a strong, 

risk-aware safety culture, from the 

executive to the front line 

• Benchmark systems and 

performance against the best 

organisations in comparable 

complex high-risk industries 

RailCorp will meet its Safety 

Objective by ensuring it has: 

• A safe railway – safe rolling stock, 

infrastructure and systems for 

customers and the public 

• A safe workplace – safe systems, 

practices, equipment and facilities 

for employees and contractors 

• A safe culture – behaviours and 

attitudes which demonstrate that 

safety is always a prime objective 

by creating a strong, risk-aware 

safety culture at every level of the 

organisation. 

Success can be measured by: 

• Reduced customer injuries 

• Reduced staff injuries 

• Reduced operational incidents 

• Reduced control failures 

• System assurance (audit, 

investigation, safety action 

management) 

• Education and training. 

• Learn the lessons from accidents 

and incidents across rail and 

other industries to continuously 

strengthen expertise, systems and 

performance 

• Share this knowledge across 

RailCorp and constantly measure 

and re-assess RailCorp’s safety 

and risk performance. 

16 


Safety initiatives during the reporting period 

SPAD management 

Where a train passes a signal 

Safety Management System 

major review 

RailCorp manages safety through 

its Safety Management System, a 

comprehensive suite of principles, 

procedures and guides used 

to maintain and improve safety 

standards in all areas of the 

organisation’s business. 

The Safety Management System is 

subject to continuous monitoring, 

review and improvement, and 

is the major component in 

the maintenance of RailCorp’s 

safety accreditation, workers’ 

compensation self-insurer licence, 

and compliance with regulatory 

obligations. 

Commenced during the reporting 

period, this major review is intended 

to ensure the System is fully aligned 

with the new Work Health and 

Safety Act (NSW) 2011, and to 

provide users with improved access 

to all system documents, forms and 

procedures. 

Progress 

Antenna construction works 

commenced, after extensive 

community consultation, with 

the first five base stations and 

supporting infrastructure installation 

completed between Sutherland and 

Waterfall. The consultation process 

has been completed for 33 base 

stations and 14 sites have entered 

the construction phase. 

The trial laying of surface cable in 

this corridor was also completed and 

testing commenced. Construction 

of a further six towers between St 

Peters and Cronulla is underway. 

Automatic Train Protection 

Implementation of this world-class 

safety system will provide realtime 

monitoring of train speed and 

location for the CityRail fleet, with 

automatic intervention or braking 

where appropriate to ensure safe 

operation for passengers and crew. 

contrary to a ‘do not proceed’ 

indication, the incident is referred 

to as a ‘signal passed at danger’, or 

SPAD. Such incidents are potential 

pre-cursors to collisions and 

derailments, and the reduction of 

SPADs is a high priority. 

This program is a multi-faceted 

approach to reduce the occurrence 

of SPADs – particularly those 

regarded as high risk. 

Progress 

Revised route knowledge guides 

were developed and a professional 

driving guide was rolled out with 

accompanying training. Importantly, 

recognition of good performance 

has been introduced. Identification 

of ‘difficult to see’ signals and the 

ensuing application of RailCorp’s 

Signal Sighting Framework to 

improve visibility has continued. 

Improvements to the Driver Support 

Program and investigation process 

have also been made. 


Digital Train Radio System 

Completion of this long-term 

project will see all passenger and 

freight trains on the NSW network 

fitted with compatible radio 

systems for communications. This 

system will provide network-wide 

radio coverage, including tunnels. 

Following review with RailCorp’s 

delivery contractor, the schedule 

for completion of the Digital Train 

Radio System has been revised to 

April 2015. 

This long-term program will 

deliver significant safety benefits 

to RailCorp customers, as well 

as presenting opportunities for 

network capacity improvements 

and reduced track maintenance 

costs. 

Progress 

Two test trains, fully equipped 

with test equipment, cab 

cameras, personnel facilities 

and communications, have been 

commissioned to support system 

integration. Initial system validation 

testing commenced in June on 

the trackside installations between 

Wyong and Gosford. 

Works have continued on the 

Wyong to Berowra section and use 

of the system by revenue services is 

expected to commence in 2014. 

Worksite Protection 

The safety of trackside workers 

continues to be one of RailCorp’s 

major priorities. Implementation 

of a suite of worksite protection 

projects is delivering progressive 

improvements in the number and 

efficacy of safety risk controls in 

place, in order to see all trackside 

workers enjoying better safety. 

Progress 

Numerous program components 

were finalised and have become 

business as usual, including 

those for incident reporting and 

analysis, signage, communications 

equipment, identification of 

lookouts, improved night time 

visibility of track workers, and a 

tag-out system for points. 


The number of reported worksite 

incidents progressively reduced 

over the year and this trend is 

expected to continue as the 

remaining improvement projects 

are delivered. 

Corridor fencing 

This joint safety and security program 

is progressively upgrading rail 

corridor fencing across the RailCorp 

network. In addition to managing 

scheduled upgrades, it also uses 

security intelligence in order to 

target trespassing and vandalism 

hotspots where specific fencing 

requirements can be addressed. 

Progress 

High security fencing works were 

completed between Campbelltown 

and Macarthur, in addition to 

installation and upgrade works at 

a further 24 locations across 

the network. 

Critical and vital 

infrastructure 

This counter-terrorism program 

of works is seeing improved 

security for a number of RailCorp 

infrastructure sites considered 

vital to service continuity. Security 

elements include perimeter fencing, 

access control, CCTV systems, 

lighting, anti-ram walls and gates, 

traffic management measures and 

explosive blast mitigation works. 

Ongoing operational safety initiatives 

Numerous ongoing safety 

related to, or caused by, 

improvement programs have 

operational issues. 

continued within RailCorp, including 

Safety Management System and 

RailCorp measures safety 

manual handling training, the School 

performance related specifically to 

Travel Smart campaign, the Annual 

the risk of passenger fatality or 

Rail Safety Week media campaigns, 

serious injury through its Operational 

injury reduction plans and injury 

Safety Index. The index tracks 

management programs, the Target 

12 incident categories: high risk 

ZERO Safety Behavioural Change 

SPADs; explosions presenting risks 

program (a leadership commitment 

to passengers; trains exceeding 

initiative within Asset Operations 

published speed limit by more than 

Group), the BackSafe awareness 

20 kilometres per hour; high risk 

program, and the safety events 

track geometry defects; high risk 

program, comprising the RailCorp 

track misalignments; high risk broken 

safety convention (for managers) 

rails; train collisions with motor 

and safety competition (for 

vehicles at level crossing; high risk 

frontline staff). 

collisions; high risk derailments; 

high risk wrong-side signal failures; 

These initiatives raise safety 

high risk rolling stock defects; and 

knowledge and awareness, and 

accidental passenger fatalities. 

progressively change behaviour 

towards a risk-aware safety culture 

RailCorp’s annualised Operational 

both within the RailCorp workforce 

Safety Index performance, 

and among its customers. 

commencing with the 2009-10 year, 

is presented on the facing page. The 

total number of qualifying incidents 

for each year is normalised per 

Passenger and public safety 

million passenger journeys. 

No passenger fatalities reported 

The annualised Index value for 

during the year were assessed as 

2011-12 of 0.086 was favourable to 

the target of 0.109. 

Progress 

Five of the eight projects in this 

program were completed during the 

year, including a number of signal 

boxes and electrical substations. 

The new Automatic Train Warning System is designed to give workers 

improved warning of approaching trains. 

18 


Employee safety 

Operational safety index 

Many of the activities performed 

by RailCorp staff in the course of 

their normal duties are potentially 

high risk. Such activities include 

track work, heavy engineering, 

0.15 

0.10 

0.118 

0.113 

Index 

Target 

0.109 

security, electrical services and 

construction. Securing progressive 

and sustainable improvement in 

0.098 

0.086 

employee safety, therefore, remains 

a high organisational priority. 

0.05 

Of significant benefit in the 

implementation and management 

of safety programs has been the 

establishment of the Safety Support 

Services Division, which provides 

expertise to RailCorp operating 

groups and projects. 

During the year the division 

has intensified the focus of line 

managers on the understanding 

of their responsibilities and 

accountabilities with regard 

to safety in the workplace. It 

has provided tools and advice 

on compliance with legislative 

requirements and on securing 

effective implementation of the 

Safety Management System. The 

overall benefits have included a 

significant reduction in lost time 

injuries (see facing page), and in 

their severity. 

0 

2009-10 2010-11 2011-12 

Lost time injury frequency rate 

40 

30 

20 

10 

0 

2004-05 

2005-06 

2006-07 

2007-08 

2008-09 

2009-10 

LTIFR 

Target 

33.85 31.08 27.4 26.9 27.1 28.3 27.3 21.0 

2010-11 

2011-12 


Employee safety in RailCorp is 

measured through two primary 

performance indicators. 

Workplace injuries 

The first is Lost Time Injury 

Frequency Rate (LTIFR), being 

the number of lost time injuries 

suffered by workers per million 

hours worked. A lost time injury is 

defined as an injury that caused an 

employee to miss a full day’s work 

or a full working shift, and includes 

a work-related fatality. 

RailCorp’s LTIFR performance for 

the 12 months ended 30 June 2012 

was 21, which was significantly 

below the end of year target of 24. 

This represents an improvement in 

days lost as a result of injuries of 

150 

100 

50 

0 

12-month average 

Target 

112 121 

123 125 118 119 119 102 

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 


approximately 40 per cent, and a 

reduction of 23 per cent in LTIFR 

compared to 2010-11. 

The second indicator is Workplace 

Injuries, a count of all employee 

injuries that have been the 

subject of accepted workers’ 

compensation claims. 

The workplace injuries performance 

of a monthly average of 102 was 

favourable to the end of year 

target of 107. 

Emergency preparedness 

Because of the nature of its 

business, it is important RailCorp 

maintains its operational readiness 

for emergencies through wellresourced 

facilities, equipment, 

systems and regular exercises. 

Exercises are conducted jointly 

with Emergency Services agencies. 

This is important as the rail corridor 

presents unique hazards that 

emergency crews must be familiar 

with. These exercises test and 

practise the response protocols and 

skills essential for effective incident 

recovery. RailCorp continues 

to enjoy a close operational 

relationship with Emergency 

Services personnel. 

The following exercises were conducted during 2011-12: 

Exercise 

Number of 

Exercises 

Participants other 

than RailCorp 

Counter terrorism 7 ADF, Police 

Station, train and/or rail corridor familiarisation 

and training 20 

Fire, Police, Ambulance, 

SES, RFS, LEMO 

Field exercise 3 Fire, Police, Ambulance, TfNSW, Airport Link 

Desktop exercise 2 Fire, Police, Ambulance, TfNSW, SES 

Train lifting exercise 25 Fire 

Abbreviations: ADF – Australian Defence Force; SES – State Emergency Services; RFS – Rural Fire Service; LEMO – Local Emergency 

Management Officer; Fire – Fire & Rescue NSW; Police – NSW Police and/or Australian Federal Police; TfNSW – Transport for NSW 

Key performance indicators 

Indicator 2011-12 Target 

Operational Safety Index 0.086 ≤0.104 

Lost time injury frequency rate (LTIFR) 21.0 ≤24.0 

Workplace injuries 102 ≤107 

BOCSAR* offences against the person per million passenger journeys 

(reported quarterly, three months in arrears) 

8.3 ≤9 

* Bureau of Crime Statistics and Research 

20 


Customer 

Objective: That the 

services RailCorp provides 

continually meet or exceed 

customer expectations. 


Customers are at the centre of everything RailCorp does 

RailCorp has worked with Transport 

for NSW to understand what 

customers want. The key findings 

are that: 

• Customers see room for 

improvement 

• Customers want to be proud of 

their rail system 

• The way to build pride is to deliver 

on safety, cleanliness, timeliness, 

information and access. 

Initiatives to address these issues 

have commenced and there is 

much more work to be done to 

improve customer satisfaction with 

RailCorp’s services. 

• To ask what customers want 

and then organise to deliver this, 

checking back with customers to 

ensure their expectations have 

been met 

• To consistently challenge 

employees to strive to do 

better, comparing RailCorp’s 

performance with best-in-class 

railway operators 

• To embark upon and continue 

to deliver long-term sustainable 

plans to improve key customer 

critical satisfaction areas 

including: cleaner trains, improved 

passenger information and an 

advanced ticketing system 

• To promote the social, 

environmental and economic 

benefits of rail that make it the 

sustainable transport choice 

• To continue to build the 

behaviours in RailCorp staff that 

customers expect and deserve. 

RailCorp’s management will 

be ambassadors, providing 

consistent leadership and 

demonstrating excellent customer 

service behaviours. 


• Overall customer satisfaction 

• Service reliability – measured by 

on-time running 

• Customer ease of use – measured 

by reduced ticketing queues at 

peak periods 

• Customer comfort – reduced 

crowding. 


Key strategies employed during the reporting period 

On-time trains 

In the second half of 2011, 

countdown clocks were installed 

at busy CBD stations to make it 

easier and faster for customers to 

move on and off the train. Clocks 

were installed at Circular Quay, 

St James and Museum, with 

additional countdown clocks added 

to Wynyard and Town Hall stations. 

New weather protection canopies 

were installed at Bexley North, 

Cardiff, Erskineville, Holsworthy, 

Morisset, Narwee, Panania, 

Riverwood and Tuggerah allowing 

customers to spread out along the 

platform in all weather conditions to 

help keep trains running on time. 

Manage crowding 

From October 2011, three services 

on the South Coast Line and one 

service on the Newcastle & Central 

Coast Line were operated by new 

eight-carriage Oscar trains. Oscars 

have enhanced security features, 

including CCTV, seats with graffiti 

and fire-resistant covering, airconditioning, 

accessible toilets, 

on-board information screens and 

automated announcements. 

Four services on the Blue Mountains 

Line have been extended from six to 

eight-carriage trains. 

A total of 41 peak, off-peak and 

weekend services between 

Newcastle, the Central Coast and 

Sydney were built up from six-car 

to eight-car trains. That means 

200 extra seats on each of these 

services, which translates to tens 

of thousands of extra seats for 

Newcastle and Central Coast train 

customers each week. 

For commuters catching the train 

from Newcastle, nearly 20,000 

extra seats will be available 

every week. On the Central Coast, 

train customers will enjoy an 

extra 33,000 seats every week, as 

many of the most popular services 

run between Wyong, Gosford 

and Sydney. 

Additional ticket gates were 

installed at Central and Martin 

Place to help manage crowding, 

alleviate congestion during busy 

peak periods and maintain safety 

for customers entering and exiting 

these stations. 

Fast, accurate, useful 

information 

In the second half of 2011, automatic 

digital announcement systems were 

installed at 22 stations. This system 

creates separate audio zones on the 

platform, which allow customers 

to hear clear, high-quality 

announcements. It also allows 

changes impacting scheduled 

services to be communicated 

quickly to customers. 

New station passenger information 

screens have been rolled out 

to Auburn, Berala, Carramar, 

Leightonfield, Lewisham, 

Merrylands, Pendle Hill, Petersham, 

Quakers Hill, Schofields, Stanmore, 

Summer Hill and Wentworthville 

stations. These 24-hour information 

screens provide details about next 

train departures, stopping patterns 

of following trains and timely 

information for a specific line. They 

also provide regular train running 

updates and can display information 

on the cause of delays. 

Safe and secure travel 

CCTV monitoring operations 

were centralised in a new Security 

Monitoring Facility in September 

2011. The Security Monitoring 

Facility more effectively and 

efficiently monitors travel and 

security issues across the network. 

It is capable of responding to 

all Help Point calls from across 

the RailCorp network as well as 

monitoring and managing the 

CCTV system. Every staff 

member in the facility is capable 

of monitoring every camera on 

the CityRail network to improve 

customer security. 

Throughout 2011, more than 1700 

secure car spaces were delivered 

around Blacktown, Revesby, 

Schofields, Warwick Farm and 

Woy Woy stations. All of these 

commuter car parks include 

enhanced passive and active 

security features, such as CCTV 

coverage, high intensity lighting and 

enhanced security fencing. 

Clean trains and stations 

Toilet facilities have been 

refurbished ahead of schedule at 

Caringbah, Cronulla, Croydon, Harris 

Park and Rooty Hill stations. The 

refurbished toilets, which include 

new separate family and accessible 

toilets, provide improved facilities 

for families with young children and 

people with limited mobility. They 

also incorporate modern vandalresistant 

interiors designed to be 

easier to clean and maintain. 

The entrance areas of 200 train 

carriages have been repainted using 

a more durable graffiti-resistant 

paint to achieve consistency and 

improve cleanliness across the fleet. 

22 


Fast ticket sales 

Following the successful installation 

of touch-screen machines last 

year, 45 existing ticket vending 

machines were modified to have 

this functionality. The enhanced 

machines are now operating at 

26 stations, including Bankstown, 

Burwood, Chatswood, Granville, 

Hurstville, Kogarah, Liverpool, 

Parramatta, St Leonards, Strathfield 

and Westmead. These user-friendly 

machines increase the speed of 

ticket transactions. 

Throughout the year, 125 ticket 

vending machines were modified 

to include EFTPOS facilities, 

providing more customers with the 

convenience of being able to pay 

for tickets electronically. 

A further 18 new EFTPOS-only 

machines were installed at stations 

including Burwood, Martin Place, 

Milsons Point, Revesby, St James, 

Waverton and West Ryde. The new 

machines help reduce queues and 

congestion at busy stations. 

Quick and fair complaints 

handling 

In 2011 RailCorp held more than 

180 ‘Meet the manager’ events 

across the network. These events 

let customers give feedback directly 

to CityRail managers. A series 

of improvements have been 

implemented as a consequence, 

including more station identification 

signage at Warabrook Station and 

additional seating on Platform 1 

Accessible services and 

facilities 

The availability of accessible 

services and facilities provides all 

customers, including those with 

special needs or limited mobility, 

with improved access to RailCorp’s 

network. Major accessibility 

upgrades at Martin Place and St 

James stations were successfully 

delivered. New lifts were installed 

at Central and Picton stations. Two 

lifts each at Town Hall and St Marys 

stations have been refurbished. 


The upgraded machines are 

at Rhodes. 

widely distributed across the 

network at stations including 

Bondi Junction, Burwood, Gosford, 

Hurstville, Newcastle, Strathfield, 

Springwood, Warrawee, Wahroonga 

and Wollstonecraft. 

The 24-hour automatic 

passenger information 

screens provide details 

about next train 

departures, stopping 

patterns of following trains 

and timely information for 

a specific line. 

The screens provide regular 

train running updates and 

can display information on 

the cause of delays. 


Special customer initiatives in the reporting period 

Everyday Customer Service 

training program 

In August 2011 RailCorp rolled out 

the Everyday Customer Service 

training program to frontline staff 

to increase awareness of putting 

the customer at the centre of 

everything they do. The training 

is based on six customer service 

principles – a set of desired 

behaviours contributing to excellent 

customer service. 

1. First impressions count 

2. Friendly and ready to help 

3. Communicate clearly 

4. Find a solution 

5. Share your knowledge 

6. Work together 

Since August 2011, approximately 

3,800 staff had attended a 

workshop, with more planned in the 

coming year. 

Quiet carriages trial 

A survey conducted by Transport 

for NSW indicated that 70 per cent 

of passengers found loud talking on 

trains annoying, while 67 per cent 

considered loud music disruptive. 

In response, RailCorp initiated a trial 

of quiet carriages on all services 

travelling between the Central 

Coast and Central Station. 

The first and last carriages of 

all six and eight-car trains, and 

the last carriage of all four-car 

trains, became designated quiet 

carriages from 13 February to 

3 May 2012. The trial was supported 

by a communications and 

marketing campaign. 

The trial was an overwhelming 

success, with 90 per cent of 

customers surveyed indicating 

that they would prefer to travel in 

quiet carriages in future. Further 

feedback revealed customers on the 

Blue Mountains and South Coast 

lines also wanted the opportunity 

to travel in peace and quiet. As 

such, RailCorp introduced a threemonth 

quiet carriage trial on these 

train lines from 1 June 2012, with 

the Newcastle & Central Coast 

Line quiet carriages becoming 

permanent from that date. 

Major cleaning at CBD and 

Eastern Suburbs stations 

Cleanliness of stations is one of the 

greatest areas of dissatisfaction for 

customers. CityRail took advantage 

of the CBD station closures on the 

weekends of 26-27 May 2012 and 

16-17 June 2012 to give CBD and 

the Eastern Suburbs stations a 

thorough clean. Interchange and 

public areas were also cleaned. 

The extensive cleaning and 

maintenance works included: 

• Painting 

• Escalators, platform surfaces, 

stairs and hand railings scrubbed 

and cleaned 

• Tiles painted and repaired, 

including an anti-graffiti finish 

Cleaning reforms 

include improving 

staff productivity, the 

introduction of escalator 

cleaning machines, 

scrubbing machines for 

station platform cleaning, 

in-transit train cleaning 

carried out by individuals, 

and cleaning flying gangs 

to carry out major cleans 

on stations. 

24 


• Ledges dusted and cleaned 

cleaning locations, in-service train 

The intervention’s success means 

• Rubbish removed from the tracks 

cleaning, stations and facilities. 

patch-painting will continue as a 

permanent process. By introducing 

• Toilets deep cleaned and 

deodorised 

• Graffiti and etching removed from 

all surfaces. 

Taking Back the Trains 

Graffiti inside the CityRail fleet 

has continued to be a significant 

problem for RailCorp. As customer 

feedback demonstrates, this form 

the capability to patch-paint over 

graffiti, RailCorp has empowered 

staff to be able to more rapidly deal 

with this anti-social behaviour. 

This contributes to enhancing 

customer experience. 

Rubbish bins 

The provision of rubbish bins 

on platforms addresses a key 

customer demand and contributes 

to an ongoing improvement in the 

cleanliness of stations. As part of 

the Customer Service Improvement 

Program an additional 250 bins 

are to be installed on the CityRail 

network. The first 150 bins were 

installed in June 2012. A further 

100 stainless steel bins were 

installed across the network on 

approximately 45 stations by the 

end of September 2012. 

Cleaning reform 

The Cleaning Reform Project 

undertook consolidation and 

streamlining of RailCorp cleaning 

services and activities to deliver 

service improvements and cost 

savings to RailCorp. 

of vandalism particularly impacts 

customer satisfaction. The Taking 

Back the Trains intervention tackled 

this key customer satisfaction area 

by upgrading the graffiti removal 

process to include patch-painting of 

aged or shadowed graffiti. 

Prior to the intervention, a pilot was 

conducted in late 2011 involving 

the patch-painting of internal 

vestibule walls. This trial achieved 

a statistically significant amount of 

graffiti removal from the fleet. 

Based on the success of the 

pilot, the Taking Back the Trains 

intervention was designed to run 

as a 12-week program from 

26 February to 19 May 2012, with 

the patch-painting process being 

implemented at three maintenance 

centres and four stabling yards 

across the network. This project 

initially concentrated on the 

patch-painting of internal vestibule 

and saloon walls. Following from 

New security model 

RailCorp Transit Officers and 

NSW Police currently work to 

maintain the safety and security 

of the rail system. On 14 February 

2012, a dedicated Police Transport 

Command (PTC) was announced, 

consisting of 610 police officers and 

led by an Assistant Commissioner 

of Police. A staged approach to the 

transition has commenced. 

On 1 May 2012 the new PTC was 

established to provide a dedicated 

police presence focused on the 

safety and security of customers 

travelling on the public transport 

system. This program will 

provide for a highly visible police 

presence for the entire public 

transport system. The PTC will 

have intelligence and criminal 

investigation capabilities. 

The transition will culminate in the 


The project implemented a range 

of initiatives to improve cleaning 

outcomes, optimise equipment 

usage and improve staff utilisation 

and productivity, such as patch 

painting to remove graffiti on 

positive results and feedback in 

the initial phase of the project, the 

scope was expanded to include 

the patch-painting of doors. Some 

floors and seats were also treated in 

this period. 

PTC assuming full responsibility for 

security functions, including patrols 

of trains, stations, interchanges, 

buses, ferries, secure taxi ranks 

and commuter car parks from 

1 January 2014. 

trains, centralised staff rostering, 

introduction of escalator cleaning 

machines, scrubbing machines 

for station platform cleaning, one 

person in-transit train cleaning and 

cleaning flying gangs to carry out 

major cleans on stations. 

This project has made a significant 

improvement in the overall 

presentation of the in-scope 

fleet. Close to 75,000 graffiti tags 

were removed over 12 weeks, 

with internal baselines showing 

that there has been a significant 

The savings were achieved 

reduction in on-board graffiti. 

through rationalising cleaning 

contracts and staff productivity, 

as well as cleaning efficiencies and 

improvements across major train 


Underground mobile 

coverage 

RailCorp is working with Optus 

(representing mobile carriers) to roll 

out 3G mobile phone coverage in 

CBD train tunnels. This long-awaited 

project saw special ‘leaky feeder’ 

cable installed along the length of 

the North Shore Line tunnels in the 

CBD, North Sydney and Chatswood, 

tested and ready for commissioning 

in July 2012. 

Design work on coverage for the 

City Circle and Eastern Suburbs Line 

was also progressed during the year. 

Rapid improvement in 

passenger information 

A revised passenger information 

operating model was implemented 

in February 2012 to deliver better 

information to station staff and 

train crew during unplanned 

service disruptions. This included 

system enhancements to the Train 

Locator System (TLS) to provide 

station staff with a more reliable 

and comprehensive source of 

disruption information. The quantity 

of disruption information delivered 

to station staff and signal boxes has 

increased by approximately 800 

per cent, and to train crew through 

mobile phone SMS by 200 per cent. 

Customer insight found customers 

are often distracted and do not hear 

audio announcements. The program 

delivered individual refresher 

training sessions with more than 150 

operators on displaying customer 

service text messages on electronic 

screens during disruptions. New 

message functions and templates 

were also implemented to provide 

consistent messages for customers. 

Process performance reports are 

now used after incidents to look for 

further improvements. 

Dwell time management 

Currently, CityRail can reliably 

operate 17 to 19 trains per hour 

on the most congested North 

Shore & Western Line due to 

operating constraints caused by 

the Sydney Harbour Bridge. These 

constraints lead to crowding and 

additional travel times on some 

trains. Extended station stop 

times (dwell times) are one of the 

key contributors to crowding and 

extending travel times. 

RailCorp has been progressively 

implementing a number of initiatives 

to maintain and reduce safe station 

dwell times. These include the roll 

out of countdown clocks on busy 

CBD platforms, platform signage, 

customer awareness campaigns, 

de-cluttering of stations and staff 

boarding assistance during peak 

hours to improve customer flow and 

reduce safe dwell times. 

Safe station dwell management 

practices have been operational in 

the PM peak on the busy North 

Shore & Western Line at Wynyard, 

Town Hall and Central platforms. 

These initiatives will be progressively 

rolled out during the morning peak 

through the CBD to the North Shore. 

The data collected during the trial is 

being further analysed to formulate 

more strategies. 

Preparing for the Opal 

ticketing system 

Transport for NSW is delivering the 

Opal electronic ticketing system 

(ETS) to make travelling on public 

transport easier and simpler for 

people living, working in and visiting 

the greater Sydney area. The new 

A revised passenger 

information operating 

model was implemented 

in February 2012 to deliver 

better information to 

station staff and train crew 

during unplanned service 

disruptions. 

26 


electronic system will be gradually 

introduced across transport 

operators, starting with Sydney 

Ferries and, after testing, will be 

introduced to RailCorp’s operations, 

followed by State Transit and private 

bus operators. RailCorp is managing 

the early works required to prepare 

its 307 stations for the new system. 

The ETS early works began in 

December 2011 and approximately 

25 per cent of the interim poles and 

cabling required had been installed 

by 30 June 2012. The poles are 

designed to protect the new 

cabling and civil infrastructure 

until the phased deployment of 

the Opal card readers by the Pearl 

Consortium. During 2012-13, 

Opal card readers will start to be 

installed on ticketing gates across 

the network. 

continuous speed restrictions 

imposed by the Australian Rail 

Track Corporation on the South 

Line that impacted on-time running 

for the Melbourne and Canberra 

services. Additional factors such 

as floods further impacted on-time 

running results. 

CountryLink Call Centre at 

Newcastle. The staff in this unit are 

dedicated to customer information, 

and their duties include contacting 

all passengers booked on 

CountryLink services to advise 

of any changes to their booked 

services, including trackwork 

and incidents that may change 

Customer contact 

In 2011 CountryLink developed an 

the nature of the service or alter 

departure or arrival times. 

outbound calls unit within the 

RailCorp OTR performance at a glance * 

07-08 08-09 09-10 10-11 11-12 

CityRail 

Passenger journeys (millions) 283.3 292.2 289.1 294.5 304.2 

Metropolitan trains on time – 

peak (%) 93.6 95.8 96.5 95.4 94.4 

Intercity trains on time – peak (%) 91.7 94.0 94.9 94.0 92.8 


CountryLink 

Service standards 

In May 2012 CountryLink introduced 

an inaugural CountryLink Coach 

Customer Service Standards, 

designed to assist contracted coach 

companies and their drivers in 

meeting the service level agreements 

negotiated as part of their contract. 

The customer service standards 

relate to drivers knowledge, coach 

quality and cleanliness as well as 

customer management. 

Improving reliability 

CountryLink has developed and 

implemented a strategy to further 

reduce delays impacting on time 

running. 

CountryLink’s target is 78.0 

per cent of its services to arrive 

within 10 minutes of the scheduled 

arrival time. In 2011-12 CountryLink 

on-time running was 62.1 per cent, 

a decrease on last year. A number 

of factors influenced CountryLink’s 

performance in 2011-12, including 

Total CityRail trains on time – 

peak (%) 93.4 95.5 96.3 95.2 94.2 

CountryLink 

Passenger journeys (millions) 1.55 1.68 1.81 1.89 2.04 

Trains on time (%) 70.5 76.6 75.0 72.7 62.1 

* All CityRail OTR data are post force majeure. OTR is defined as arriving within 

five minutes for metropolitan and within six minutes for Intercity. 

CountryLink on time running % 

Year Arrive within 10 

minutes 

Arrive within 15 

minutes 

Arrive within 30 

minutes 

2011-12 62.1 69.5 81.2 

2010-11 72.7 79.0 87.8 

2009-10 74.7 80.8 89.2 

2008-09 76.7 N/A 89.5 

2007-08 70.5 N/A 85.5 

RailCorp Key Performance Indicators 2012 

Key Performance Indicator 2011-12 Target 

CityRail peak on-time running (OTR) – post force 

majeure 94.2% ≥ 92.0% 

CityRail peak delay minutes (monthly average) 6423 ≤ 4620 

CityRail crowding – average number of 

passengers per m 2 of standing space in the peak 

1.1 

(March 2011) ≤ 1.9 

CountryLink OTR 62.1% ≥ 78.0% 


Growth 

Objective: RailCorp will 

work with Transport for 

NSW to assure its Growth 

Program provides for 

sustainable capacity and 

service improvement. 

RailCorp’s role in delivering capital works is decreasing 

but, as an asset maintainer and operator, it will have a key 

role in reviewing and assuring asset requirements. RailCorp 

will work closely with Transport for NSW and third-party 

suppliers to support the growth of a transport system that 

meets customer expectations. 

In determining its growth priorities 

for the reporting period, RailCorp 

focused on building a program that: 

• Supported the achievement of 

the NSW Government’s transport 

priorities 

• Facilitated patronage growth, as 

projected through transport and 

land use planning 

• Increased market share, 

geographic penetration, revenue 

growth and customer satisfaction 

• Strengthened RailCorp’s asset 

base – both network and fleet 

• Contributed to building a 

sustainable public transport 

network. 

In developing its program Railcorp 

considered: 

• Community obligations and 

local social, environmental and 

economic impacts 

• Potential efficiencies 

• Environmentally sustainable 

design 

• Opportunities to address demand 

and deliver revenue growth. 

The measurement indicators set for 

the reporting period included: 

• Increased share of commuter trips 

made by public transport 

• Improved access to services for 

customers with restricted mobility 

• Increased capacity at peak times 

(more services, more carriages) 

• Designs that incorporate 

environmental sustainability 

• Delivery of projects to plan 

• Increased availability of travel 

paths for freight. 

The key growth strategies for the 

reporting period were: 

• Develop the capital program for 

future years through effective 

prioritisation and benefit analysis 

28 


• Develop and implement new 

accessible toilet. Construction 

In January 2012, the upgrade at 

timetables to take advantage of 

is well underway on the fourth 

Central’s Devonshire Street entrance 

increased capacity provided by 

platform with precast sections 

was opened. The upgrade included 

infrastructure investments 

necessary for the concourse and 

two new lifts, one at the Devonshire 

• Implement the Fleet Management 

Strategy for planned service 

improvements to 2020 

footbridge extensions being lifted 

into place in May and the installation 

of the precast box sections, which 

form the base of the new platform, 

Street entrance and one joining the 

Eastern Suburbs Line and 

electric paid concourse areas. 

A new accessible ramp was installed 

• Construct new lines to support 

population and developing 

employment centres 

• Acquire additional rolling stock to 

increase capacity by supporting 

the introduction of additional 

services, more carriages per train 

and more passengers per carriage 

• Separate lines to simplify and 

expand sections of the existing 

rail network 

• Cater for special events 

being placed. 

Approximately 60 per cent of the 

new 1.8 kilometres of track, which 

will help strength reliability and 

improve journey times of the South, 

Bankstown and Inner West lines, 

has been constructed. 

The remainder of the rail operating 

infrastructure is planned to be 

complete by early 2013, with project 

completion intended for early 2014 

with the commissioning of the 

signal system. 

from the Eastern Suburbs Line paid 

concourse to the Devonshire Street 

entrance. Two new escalators were 

also provided at the Devonshire 

Street entrance. Other works 

included a new ticket office facility, 

additional ticket gates, widening 

of the entrance to the Devonshire 

Street tunnel and new entrance 

awnings as well as ceiling and 

roof structure. 

New wayfinding signage was 

installed at 31 stations across the 

network, in accordance with the 


• Adopt automatic train protection 

State Signage Plan. 

systems 

• Provide adequate freight access. 

Liverpool Turnback 

Station upgrades 

RailCorp is progressively updating 

its station infrastructure to better 

address future growth and increase 

customer convenience and amenity. 

Major sandstone restoration work 

was completed on the Goulburn 

Street viaduct and the Central Clock 

Tower. The scaffolding was removed 

and the Clock Tower revealed in 

December 2011, complete with new 

flag pole and renovated clock face. 

Liverpool Turnback Project, 

programmed for commission in early 

2014, will improve the capacity and 

reliability of local train services by 

reducing congestion on the network 

especially during peak periods. 

The significant works completed 

during this period have seen one of 

two new stabling roads completed 

and the majority of enabling track 

works either side of Liverpool 

Station installed. As a result of the 

discovery of unstable foundation 

conditions, it was necessary to 

Progress 

In 2011-12, transport access upgrades 

were completed at three stations. 

In October 2011 Quakers Hill 

upgrade was completed. The 

upgrade included three new lifts, 

footbridge and access stairs. 

A complete new station building 

with ticket facilities, a family 

accessible toilet and staff facilities 

was provided. The platform was 

resurfaced, with new platform 

canopies installed. 

Works commenced in January 

2012 on the installation of the Opal 

card electronic ticketing system. 

The works, to span the 307 CityRail 

stations, includes installation of 

cable containment, cabling, Opal 

Card readers and top-up machines 

to pre-determined locations at each 

station. Work is expected to be 

completed in September 2013. 

Novo Rail Alliance 

design and construct a section of 

viaduct and ground slab to support 

the lines. These works are now 

substantially complete. 

Works completed at Liverpool 

Station this year, aimed at making 

it more efficient for passengers, 

include the construction of a family 

In November 2011, the Picton 

Station upgrade was completed. 

The upgrade included two new lifts 

and a footbridge, new platform 

canopies, new car park facility and 

new toilet facilities, including a 

family accessible toilet. The station 

buildings were also repainted. 

The Novo Rail alliance (a RailCorp 

alliance in partnership with Aurecon, 

Laing O’Rourke and O’Donnell 

Griffin) is now in its fourth year 

delivering a substantial program 

of infrastructure works across 

the network. These works include 

substantial brownfield projects 


at Glenfield Junction and Auburn 

Junction, the historic installation 

and commissioning of Automatic 

Train Protection equipment on the 

Main North Line; and a range of key 

Traction Supply Upgrades, including 

the construction of new substations 

and installation of feeder lines 

across Sydney’s inner west. 

Progress 

There are close to $500 million worth 

of projects currently in progress or 

complete. 

Demonstrable capability in tackling 

multi-stakeholder, brownfield 

projects through to highly complex 

Traction Supply Upgrade design 

and construct solutions, and 

in driving innovation on repeat 

installation work (such as Automatic 

Train Protection) has been achieved. 

More than 250 staff have been 

mobilised into the alliance, including 

over 25 per cent recruited from 

overseas to help address 

Australia’s rail industry engineering 

resource issue. 

A rolling 12-month LTIFR of 1.34 

(only two LTIs in the life of Novo 

Rail) and further improvements in 

safety continue to be a major focus. 

New technology has delivered 

greater project efficiencies, such 

as the use of sophisticated track 

building machines called PEM LEMs, 

enabled an Australian first in the 

installation of a 1:18.5 turnout in one 

piece over a weekend possession at 

Glenfield Junction. 

Oscar rolling stock 

acquisition 

The Oscar project will see 221 

double-decker carriages enter 

the CityRail network. The new 

carriages are equipped with CCTV, 

air-conditioning, fully disability 

accessible toilets, on-board 

passenger information screens and 

reversible seats. 

The first two stages delivered 

122 carriages onto the CityRail 

network, including two spare 

carriages. 

The third stage of the project 

initially involved delivery of an 

additional 74 carriages and 

associated stabling works by mid- 

2012 at a cost of $370 million. 

In February 2011, an additional 

contract for 25 carriages was 

announced. This will bring the Oscar 

fleet up to a total of 221 carriages, 

with completion of deliveries 

expected by early 2013. 

Progress 

All 196 carriages of Stages 1, 2 and 

3 have been delivered and entered 

passenger service. 

Significant progress was made in 

2011-12 on Oscar deliveries with 

44 carriages entering service prior 

to 30 June 2012, with the remaining 

25 carriages at various stages of 

production. 

Oscar carriages are being used on 

a daily basis to deliver more than 

1000 weekly services on the Eastern 

Suburbs & Illawarra, South Coast, 

Newcastle & Central Coast, North 

Shore and Western lines, providing 

improved comfort and security for 

customers. 

RailCorp and UGL received two 

project management achievement 

awards by the Australian Institute of 

Project Management: NSW Winner, 

and National High Commendation, 

for Product Development. 

The Liverpool Turnback 

Project, programmed for 

commissioning in early 

2014, will improve the 

capacity and reliability 

of local train services by 

reducing congestion on the 

network especially during 

peak periods. 

30 


The Waratah fleet is maintained at 

Reliance Rail’s Auburn Maintenance 

Centre, which was opened in 2010. 

This project moved under the 

control of Transport for NSW as of 

1 May 2012. 

Stabling 

A total of 626 new air-conditioned Waratah carriages will provide 

passengers with improved security, comfort and accessibility features. 

Rolling stock PPP 

The Public Private Partnership 

(PPP) contract is the largest 

single order of trains in Australia 

– representing about 50 per cent 

of the current suburban fleet and 

supporting future demand for more 

services. A total of 626 new airconditioned 

carriages will replace 

non-air-conditioned cars and 

provide passengers with improved 

security, comfort and accessibility 

features. 

In total, 78 new air-conditioned 

Waratah trains are to be delivered 

to replace around half the suburban 

electric fleet. 

The first Waratah eight-car train 

entered passenger service on 

1 July 2011. As at 30June 2012, there 

were 27 Waratah trains in various 

stages of manufacture and testing 

and 10 available for passenger 

services. 

The Waratah trains are being 

progressively introduced across 

the network, starting with the 

Airport & East Hills, South and 

Northern lines, and on the weekend 

are used to provide Olympic Park 

shuttle services. As more Waratah 

trains are delivered, they will be 

progressively introduced onto the 

South, Bankstown, Western and 

North Shore lines. 

The Waratah PPP project also 

involves the completion of 

more than 20 infrastructure and 

technology projects, as well as 

change management and training. 

In the past year, significant 

progress has been made on key 

infrastructure projects and staff 

training to support the deployment 

plans for the new Waratah trains. 

Secure transitional stabling for the 

new trains at the Enfield Marshalling 

Yard has been constructed, as well 

as track upgrades at Auburn and 

Sulphide Junction. 

The Traction Supply Upgrade 

Program, which includes new and 

upgraded substations, high voltage 

feeders and overhead wiring projects 

at key sites, is being progressively 

completed to support the 

introduction of the Waratah fleet. 

In 2011-12 progress was made on 

RailCorp’s stabling yard strategy to 

replace, improve and, in some cases, 

to build additional stabling facilities 

across the rail network in order to 

increase the capacity as the network 

moves to all trains being eight-car 

sets. Penrith and Campbelltown had 

stabling improvements completed 

during the reporting period. 

In May 2012, Transport for NSW 

commenced a review of network 

stabling requirements. 

Dunmore Loop 

The Dunmore Loop Extension 

Project was completed on 

4 December 2011, with the first 

freight train passing through the 

new loop the next day. The project 

commenced concept design in 

March 2010 and was commissioned 

within a tight timeframe, despite 

heavy rain and a challenging 

geographical location. 

The 21 months of work was 

undertaken by RailCorp and 

its alliance partner, TSA (Track 

Services Australia). Works included 

the construction of 1.7km of new 

track, drainage, culverts, removal 

of the old turnout, installation of 

a new crossover, new overhead 

wiring, commissioning of all signal, 

communication and control system 

infrastructure both on site and at 

Wollongong Signal Box. 



Assets 

Objective: Effective 

management and 

stewardship of our assets. 

With a growing and diverse asset base that is 

geographically spread over NSW, effective asset 

management is crucial to providing good customer service. 

RailCorp invests more than $1 billion 

each year to maintain and renew 

its assets. 

With such a significant investment 

it needs to work smarter to 

deliver customer outcomes in a 

financially and environmentally 

sustainable manner, offsetting new 

costs with savings in base costs and 

ensuring that acquisition decisions 

are taken with an informed view of 

lifecycle costs. 

Many asset management tasks 

are not visible to customers but 

play a critical role in providing 

the level of safety, availability and 

reliability customers expect (see 

diagram opposite). More efficient 

maintenance will free up funding 

to improve customer facilities, 

information and ambience. 

To ensure RailCorp meets its 

Assets Objective it has committed 

to these strategies: 

Asset management plans, corridor 

plans and asset strategies are in 

place and regularly reviewed to 

consider the lifecycle view of our 

assets. RailCorp’s asset strategy 

and asset management plans 

demonstrate delivery of responsible 

asset management through: 

• Achieving prioritised objectives 

for routine and major periodic 

maintenance, to maintain asset 

quality levels and performance 

reliability, optimising customer 

benefits 

• Undertaking prioritised capital 

projects to upgrade the network 

• Minimising environmental 

impacts and maximising positive 

outcomes for the community. 

RailCorp looks after the full range 

of operational and non-operational 

assets in a considered and holistic 

way. Its asset strategy and asset 

management plans incorporate 

environmentally sustainable 

principles, including energy 

efficiency. 

RailCorp’s success can be 

measured by: 

• Reduced customer impact from 

asset-related incidents 

• Achieving the approved rolling 

10-year Asset Management Plan 

• A minimal maintenance backlog 

32 


• Delivering the Routine 

Maintenance Program 

The customer is at the centre of asset management 

• Delivering the Major Periodic 

Maintenance Program. 

Key asset strategies for the 

reporting period: 

• Develop skilled people to manage 

and lead asset management 

Customer 

ambience 

Customer 

information 

RELIABLE ASSET 

SERVICEABILITY 

• Continuously improve the 

RailCorp Total Asset Management 

System to increase the efficiency 

and effectiveness of our 

investment in asset management 

• Develop reliable information and 

technology platforms to support 

effective and timely business, asset 

and operational decision making 

• Develop routine and major 

periodic maintenance plans for 

each asset type to maintain the 

best possible condition and 

integrity for the life of the asset 

• Utilise industry partners to 

support delivery of effective asset 

management plans 

• Through effective prioritisation, 

schedule planned works and 

efficiently transition all projects 

• Progress the integration and 

improvement of RailCorp’s 

heritage management, within 

resourcing constraints. 

Corridor renewal 

RailCorp’s investment in the 

condition of its rail corridor and 

infrastructure has reduced incidents, 

resulting in better on-time running, 

safer and more reliable rail services 

for customers. The corridor renewal 

project includes track reconstruction, 

new overhead wiring, signalling and 

control systems. 

RailCorp has had an ongoing 

program to replace timber sleepers 

HIGHER 

CUSTOMER 

VISIBILITY 

with concrete ones and install 

new rail and ballast on passenger 

mainlines. The upgrades provide 

long-term benefits by improving 

the reliability of train services, 

particularly during the warmer 

months where tracks have a 

tendency to expand in the heat and 

trains are required to slow down to 

maintain safety. New rails provide a 

smoother ride for passengers and 

heavier, more modern, concrete 

sleepers mean trains 

can operate at normal speeds in 

higher temperatures. Concrete 

sleepers also have a longer lifespan 

and need less maintenance. By 

June 2012 more than 83 per cent of 

CityRail passenger mainline track 

had been converted from timber to 

concrete sleepers. 

Customer 

security 

Availability 

Available for 

safe use 

Throughout 2011-12, good progress 

was made, with major track 

reconstruction work taking place 

on the North Shore Line and 

the Richmond Branch Line, as 

well as the Main South (between 

Merrylands and Glenfield), Eastern 

Suburbs & Illawarra (Coalcliff to 

Customer 

facilities 

Staff Safety 

SAFE ACCESS 

Reliability 

Reliable 

asset safety 

HIGHER 

CUSTOMER 

IMPACT 

Wollongong) and South Coast 

(Dapto to Kiama) lines. Track 

reconstruction on the Richmond 

and Main South corridors is planned 

for completion in 2013. 

RailCorp is continuing work on 

recontructing the South Coast Line 

track. RailCorp has, since 2008, 

upgraded more than 90km of track. 

Additional work on this corridor is 

scheduled over the coming years. 

In addition, RailCorp’s existing 

fixed tension overhead wiring 

(OHW) is being replaced by a 

regulated tension system that 

ensures the contact wire remains 

at a constant height regardless 

of ambient temperature. This 

eliminates the problem of low wire 

in summer and entanglements. 

At 30 June 2012, 97 per cent of 

RailCorp’s OHW modernisation 

program had been completed. 

Major overhead reconstructions 

were carried out on the 

North Shore, Western and Central 

Coast lines. 

Customer 

safety 



Major Periodic 

Maintenance 

RailCorp operational assets are 

managed under the Strategic Asset 

Maintenance Plan, of which a core 

component is the Major Periodic 

Maintenance program (MPM). 

The MPM program includes cyclic 

renewal and preventative actions, 

safety and environmental programs 

and upgrading key assets to 

improve performance and extend 

asset life. 

Signalling 

A number of major signalling and 

control systems were successfully 

delivered: 

• Southern Sydney Freight Line 

Stage 1 to Leightonfield 

• Quakers Hill to Schofields’ 

Duplication 

• Bidirectional signalling between 

Sutherland and Oatley 

• Dunmore Loop Extension 

• Rail Deviation Lawson 

• Replacement of the Central Coast 

infrastructure monitoring server 

• Eastern Suburbs Railway Relay 

Replacement Project. 

Maintenance highlights for 2011-12 

Major program production 2011–12 final results: 

• Rerailing: 60 km 

• Points machines: 88 

• Contact wire renewal: 23 km 

• New sleepers laid: 68,196 

• Turnouts renewed: 69 

• Trainstops renewed: 133 

• Bridges refurbished: 16 

• Platforms resurfaced: 12 

• Component change-out (electric fleet): 231 

Turnout renewals 

These continued at record levels 

during 2011-12 with 69 renewals 

delivered. 

Highlights of this program included 

continued delivery of turnout 

renewals in the CBD (Central to 

Goulburn Street) and the installation 

of state-of-the-art bearers at 

Hornsby Junction. 

• Fleet presentation work: 192 

• Overhead wire rebuilds: 15 km 

• Track reconstruction: 26 km 

Geotechnical risk sites 

Treatment of geotechnical risk sites 

on cuttings and embankments was 

undertaken as a result of additional 

funding in 2011-12 and resulted in 

delivery of an increased volume 

of works. 

In addition to CBD station cleaning 

and maintenance works, a number 

of platforms were resurfaced and 

stations refurbished. 

34 


Lift car renewal 

Passenger lifts are critical to 

passenger convenience and to 

enable accessibility to the RailCorp 

network. The lift car renewal 

program has been established 

to improve the availability and 

the mean time between failures 

of passenger lift assets through 

replacement of assets at the end of 

their average economic life. 

The first passenger lifts placed in 

service are now close to the end 

of their economic life and cyclic 

renewal is necessary. 

A prioritised future program of 

lift car renewals is now in place 

and will see an increasing number 

of assets renewed each year in 

order to maintain a steady state 

of performance. As the lift and 

escalator population increases with 

new projects across the Sydney rail 

network, an increasing focus will be 

required to deliver this program. 

To date lifts at Town Hall, 

Lidcombe and St Marys have been 

delivered, with future renewals 

planned at stations such as Central 

Case study: Boundary 

Street bridge renewal 

During the reporting period, 

RailCorp renewed the rail bridge at 

Boundary Street, Roseville, paving 

the way for the removal of one of 

Northern Sydney’s major traffic 

choke points. It also opened up the 

future possibility of allowing the rail 

line passing over the bridge to be 

quadrupled, which would provide 

for an increase in network capacity 

to meet future customer needs. 

The new bridge has a higher, wider 

structure which will be able to 

accommodate a six-lane road with 

increased vehicle clearance. It also 

reduces noise for local residents. 

During construction, two 

100-tonne concrete girders and 11 

30-tonne precast deck slabs were 

manoeuvred into place on the 

western side of the existing bridge. 

Positioning the enormously heavy 

girders into place involved some 

very delicate heavy lifting, requiring 

the use of two cranes and involved 

a mid-air lifting hook transfer. 

The project made use of an 

innovative product: self-compacting 

concrete. Self-compacting concrete 

offers many advantages over 

regular concrete mix. It does not 

require external vibration to be 

sufficiently packed down which is 

deal for use inside a pipe. 

It travels unassisted through the 

reinforcement steel inside of the 

pipe and fills every last nook and 

cranny. The result is that the beam is 

far stronger and able to bear a much 

heavier load. Its success has been 

well documented across the world. 

A number of mix designs and trial 

pours were conducted prior to 

incorporating the concrete into the 

permanent works. Special materials 

reduced the heat of hydration 

generated by the concrete mix. 

This had the added benefit of 

introducing a waste material into 

the mix design, adding to the 

sustainable use of materials for the 

construction of the bridge. 

Strength gains from the concrete 

were used to replace expensive 

grouting mixtures. 


and Blacktown. 

During construction of the 

Boundary Street bridge, 

two 100-tonne concrete 

girders and 11 30-tonne 

precast deck slabs were 

manoeuvred into place 

on the western side of the 

existing bridge. 


Heritage 

RailCorp has the largest portfolio of statutory-listed 

heritage assets in NSW. This portfolio includes both 

operational and non-operational assets. Heritage 

management priorities are reflected in a four-year Heritage 

Asset Management Strategy (HAMS). 

In the second year of HAMS, 

initiatives progressed included: 

• Establishment of a Heritage 

Service Provider Panel for 

business-wide access to 

specialised heritage services 

• A Surplus Heritage Assets 

Management Study to guide 

strategic management of disused 

non-operational heritage assets, 

along with adaptive reuse and 

feasibility studies for four surplus 

heritage assets 

• Completion of the alignment 

of the S170 Heritage Register 

with RailCorp’s primary asset 

management system, Ellipse 

• Working with the Office of 

Environment and Heritage (OEH) 

to bring RailCorp’s State Heritage 

Register listing up to date with 

new nominations, de-listings and 

curtilage amendments 

• Participation in a pilot program 

to enhance the S170 Register 

database to a web-based 

centralised system 

• Advancing the development of 

an online ‘Railway Conservation 

Guide’, including guidelines for 

maintenance and upgrade works, 

such as an updated Engineering 

Standard for heritage station 

paint colour schemes. 

Operating network 

Conformance to Heritage Act 

requirements 

Conformance to Heritage Act 

requirements is an integral element 

of station upgrading and building 

maintenance. To assist project 

managers, the RailCorp intranet 

has been populated with a link 

to resources and information on 

heritage processes. 

Projects achieving positive heritage 

outcomes during the year include: 

• Restoration and repair of 

the stonework of the 86m 

high Central Station clock 

tower, together with internal 

strengthening works and upgrade 

of the clock mechanism. This 

has been a major achievement, 

ensuring that this significant 

structure is conserved for many 

years to come 

36 


• Restoration of the Waterfall 

Highlights this year include: 

attraction – within the context of 

turntable to display condition – 

one of the few remaining in the 

metropolitan railway network 

• Reconstruction of the Cronulla 

Station platform awnings to 

remove hazardous materials while 

keeping the original profile. 

• RailCorp was announced 

winner of the ‘Conservation 

Movable Heritage Corporate and 

Government’ category at the 

2012 National Trust NSW Heritage 

Awards for the reconstruction 

of a Powder Van by RailCorp 

the economic downturn, extensive 

wet weather and the close-out of 

upgrade activities. Nevertheless, 

Trainworks was a finalist in the 

2011 NSW Tourism Awards and, at 

30 June 2012, was a finalist in the 

Greater Sydney Tourism Awards. 

apprentices. RailCorp was also 

The Apprentice Heritage 

highly commended for the 

Restoration Program at the South 

Non-operating network 

Heritage collection assets 

RailCorp’s extensive collection of 

heritage assets – precincts, rolling 

stock and small objects – is largely 

assigned to community groups 

across the state. Volunteers with 

specialist skills keep RailCorp’s 

heritage fleet rolling under their own 

accreditation. Funding assistance to 

these groups is provided to support 

asset maintenance plans. 

Heritage assets were the subject 

of a review to determine the future 

arrangements for the management 

of these assets. 

upgrade of the rail heritage 

centre, Trainworks, at Thirlmere 

in the ‘Regeneration and New 

Development’ category 

• Trainworks is operated by 

RailCorp’s not-for-profit 

subsidiary company, Trainworks 

Limited (with Board oversight), to 

promote and manage the visitor 

experience. In its first full year of 

operation, Trainworks at Thirlmere 

proved to be a popular attraction 

with visitor numbers exceeding 

34,000. As the onsite rail 

operator, the NSW Rail Transport 

Museum (NSWRTM) continues 

to conserve and maintain rolling 

stock and provide heritage 

train rides from the site. It was a 

challenging year for this visitor 

Eveleigh Annexe replaced 40 

windows in two Southern Aurora 

dining cars. The rejuvenation 

of these 50-year-old carriages 

involved an intergenerational skills 

transfer and knowledge capture. 

Also completed by the apprentices 

in 2011, the reconstructed Powder 

Van is on display at Cooma Railway 

Station. 

The Rail Heritage Care Program, a 

RailCorp/Conservation Volunteers 

Australia (CVA) partnership, 

generated a range of successful 

projects from repairing heritage 

rolling stock to cataloguing 

collections. By the end of 2011, 57 

CVA volunteers had undertaken 

1377 incident-free volunteer days at 

six sites across NSW. The program 


generated positive media coverage 

and feedback. 

Exhibitions 

During the year, visitors to Central Station were able to enjoy three 

exhibitions at Rail Heritage Central: 

• ‘Central Station – a Timeless Treasure’ continued its run until August 

2011. 

• As part of History Week September 2011, ‘Food to Go’ was launched 

to tell the story of food on the rails – from how food was prepared 

and delivered in the small confines of railway buffet cars to the 

Railway Refreshment Rooms and the romance of railway dining. 

• On 16 April 2012 celebrations marking 50 years of the Southern 

Aurora began with a new exhibition Glamour and the Gauge, and 

the launch of a commemorative anniversary book. Along with the 

standardisation of the rail gauge between Sydney and Melbourne, 

this new ‘non-stop’ service with new rolling stock was the height of 

glamorous travel and customer experience in an age before the rise 

of airline travel. 

Significant asset maintenance 

projects included repairs to the 

Large Erecting Shop at Eveleigh, 

preparation for major hazardous 

materials remediation works at 

Cooma, Tenterfield and Werris 

Creek and remodelling the 

‘Igloo’ building at Chullora to 

receive heritage collection items 

relocated from North Eveleigh. 

The manufacturer commenced 

rectification works on the new boiler 

for heritage locomotive 3801 further 

to its non acceptance by RailCorp 

in 2011. 


Environment and sustainability 

Objective: To be 

an environmentally 

sustainable railway, 

with an environmentally 

responsible culture. 

Apart from providing customers with a sustainable mode of 

travel, RailCorp also plays a role in caring for the environment. 

to deliver RailCorp’s sustainability 

objectives have been captured with 

a view to widespread replication. 

RailCorp’s environmental and 

sustainability objectives are: 

• To steward the long-term 

sustainability of the rail transport 

network, assets and services 

under our care 

• To understand and manage the 

effects of our rail transport service 

on the environment and the 

community 

• To maximise the benefits of rail as 

a sustainable transport option. 

RailCorp’s commitment to these 

objectives resulted in a number of 

initiatives and improvements being 

conducted throughout the reporting 

period, as illustrated by the 

following highlights. 

RailCorp’s sustainability 

strategy 

RailCorp’s first sustainability strategy 

was completed during 2011-12. It 

builds on the previous benchmarking 

and development work undertaken 

on the significance of sustainability 

in the organisational context. 

The strategy embeds RailCorp’s 

environmental vision – to be an 

environmentally sustainable railway, 

with an environmentally responsible 

culture – by documenting our 

sustainability objectives around 

the key themes of climate change, 

water efficiency, resource use, waste 

management and biodiversity. 

Communicating the benefits and 

opportunities the strategy presents 

is critical as RailCorp seeks to further 

build environmental sustainability 

into existing business practices. A 

number of practices already in place 

Sustainable design guideline 

for NSW rail 

RailCorp revised and improved the 

guidelines driving sustainability 

considerations in new rail 

infrastructure projects. In partnership 

with the Transport Projects division 

of Transport for NSW, the guidelines 

assist projects to meet their 

objectives in a manner consistent 

with ecologically sustainable 

development. That is, by minimising 

environmental and social impacts, 

minimising operational costs, 

maximising environmental and 

social opportunities, as well as 

driving sustainable performance 

improvement through innovation. 

The guidelines are first applied 

during the design of new rail 

infrastructure so sustainability is part 

of the core scope and is considered 

38 


through the life of the project. 

undertaken a number of 

of ‘reduce – reuse – recycle’, and by 

These guidelines provide a vehicle 

initiatives including LED lighting at 

purchasing recycled products when 

for RailCorp, in partnership with 

various locations. 

appropriate. The RailCorp Pitt Street 

the Transport Projects division, to 

continue to bring design excellence 

to new infrastructure to better serve 

our customers. 

In early 2012 RailCorp partnered 

with the Office of Environment 

and Heritage through the NSW 

Government Building Retrofit 

office has adopted this approach, 

using a waste management system 

that aims to increase recycling and 

reduce office waste. 

Program to upgrade lighting at eight 

In 2011-12 RailCorp returned almost 

Operational environmental 

management plans 

stations to LED technology. The 

upgrades are scheduled to be 

completed in 2012 and, once 

6000 toner cartridges to the Planet 

Ark recycling company C4PA, 

diverting more than 4.5 tonnes 

RailCorp has continued to develop 

and implement operational 

environmental management plans 

for specific areas of RailCorp that 

carry environmental risk. Through 

its Environmental Management 

System Program, these plans work 

at the local management and 

operational staff level and facilitate 

the effective management of 

RailCorp’s environmental risks 

and the continual improvement 

of the organisation’s overall 

environmental performance. 

Noise monitoring 

The angle between a bogie 

wheel and the track on which it is 

travelling is the ‘angle of attack’. An 

excessive angle of attack can lead 

to a number of issues, including 

noise on curves. 

RailCorp operates an angle of 

attack detection system at a curved 

section of track near Beecroft and 

collaborates with the Australian 

Government’s Cooperative 

Research Centre rail noise project 

to analyse the data and provide 

results back to freight operators. 

The detection system was 

upgraded during the year to 

improve its performance. 

Energy efficient LED lighting 

RailCorp is continuing to assess its 

operations for energy efficiency 

opportunities. Following a series of 

such assessments RailCorp has 

implemented, will reduce the lighting 

energy consumption at these 

selected sites by up to 45 per cent 

while providing additional benefits 

such as maintenance savings. 

Biodiversity 

Being a large land owner, RailCorp is 

actively promoting biodiversity 

good practice and stewardship, and 

continues to implement management 

plans for threatened species of flora 

and fauna, including the Downy 

Wattle (Acacia pubescens) and the 

Green and Gold Bell Frog (Litoria 

aurea). Bush regeneration on the 

Downy Wattle was conducted at 

eight locations over 2011-12, and 

habitat enhancement works were 

also completed for the Green and 

Gold Bell Frog. 

During 2011-12, RailCorp has 

undertaken bush regeneration 

works to enhance environmentally 

sensitive locations around the 

metropolitan network. Regeneration 

works have been undertaken on 

Blue Gum High Forest remnants 

in northern Sydney and remnant 

bushland in the World Heritage 

listed Blue Mountains. 

Waste reduction and 

purchasing policy 

RailCorp is committed to 

implementing the principles of 

the NSW Government’s Waste 

Reduction and Purchasing Policy 

by promoting the waste hierarchy 

from landfill. Our cartridge recovery 

program has been so successful 

that Planet Ark placed RailCorp in 

the top 20 companies in Australia 

for ink cartridge recycling over the 

past 10 years. 

Since October 2010, RailCorp’s 

CountryLink catering group 

has donated food suitable for 

consumption but not for resale to 

the OzHarvest food rescue charity 

for distribution to people in need. 

This food would otherwise have 

ended up in landfill and to date 

more than 64,000 meals have 

been provided to disadvantaged 

and homeless people in and 

around Sydney. 

RailCorp continues its commitment 

to improving recycling and waste 

facilities for customers at stations 

and commenced the roll out of 250 

additional bins to 70 stations across 

the network. 

RailCorp offices recognised 

for environmental 

improvement 

In 2011 RailCorp achieved a 

three star NABERS (the National 

Australian Built Environment Rating 

System) tenancy rating for its main 

corporate offices at 477 Pitt Street 

as part of its commitment to the 

City Switch program. City Switch 

is a partner program between 

business and local government to 

encourage office tenants to improve 

their environmental performance. 



Value for money 

Objective: The organisation 

is managed in a financially 

sustainable way. 

RailCorp will be able to offer much better value for its 

customers and for the taxpayer if it continues to improve 

efficiency and service standards. Customers have told 

RailCorp that the service improvements achieved in recent 

years are making a difference. However these benefits have 

come at an unsustainable financial cost. 

• Accomplishing objectives within 

an appropriate risk and control 

framework. 


• Achieving the target for 

RailCorp’s operating costs set by 

government (Community Support 

Ratio) 

It costs approximately $3.8 billion 

each year to operate RailCorp 

including depreciation. Around 20 

per cent of this cost is returned 

through fares. Increasing efficiency 

will allow RailCorp to reinvest in the 

business, however, it will require 

a combination of cost reduction, 

productivity improvement and 

simplified work practices if 

the organisation is to sustain 

growth and customer service 

improvements. 

RailCorp will pursue opportunities 

for business improvement and will 

strengthen commercial practises, 

ensuring it meets compliance 

obligations and manages risk 

appropriately. Several programs are 

in place to deliver these outcomes 

and more will be rolled out through 

the Fixing the Trains program. 

To ensure that RailCorp will meet 

its value for money objective, it 

will deliver the required customer 

services by: 

• Efficiently managing its operating 

and capital budgets 

• Challenging itself to improve 

net costs of operations against 

appropriate service and cost 

benchmarks 

• Spending on the right things 

• Maximising revenue contribution 

within the agreed framework 

• Reducing real costs of operations 

for each carriage kilometre 

• Operating within budget 

• Growing revenue, both from 

farebox and other sources of 

income. 

Key value for money strategies are: 

• Cost-effective operations to 

reduce government subsidy and 

cost to customers 

• Strategic sourcing and delivery 

– to expand resource availability 

and better control costs 

• Strategic and risk management 

practices to efficiently utilise 

40 


human, capital and intellectual 

assets through effective 

integrated planning 

Rolling stock 

maintenance reform 

inspections will be replaced with a 

balanced maintenance regime. 

• Taking a thorough and systematic 

approach to identify and pursue 

opportunities for efficiency 

improvements generated 

by functional, structural and 

technological change 

• Effective and efficient business 

processes and platforms that 

improve the accessibility 

of relevant management 

information. This will lead to 

better decision making and 

accurate and timely information 

on all aspects of service and 

operations to ensure compliance 

and control 

RailCorp’s in-house rolling stock 

maintenance function is capable of 

competing with the private sector, 

with an independent assessor 

confirming to the NSW Government 

that all maintenance reform 

milestones have been met. Progress 

included cross-skilling of fitters and 

electricians in the electric depots. 

At an operational level, incidents 

involving passenger door failures 

on the Intercity (V Set) fleet 

decreased 60 per cent, thanks 

to the Flemington Maintenance 

Centre improvement project – part 

of RailCorp’s Everyday Service 

Essentials Program. 

Lean Six Sigma 

Lean Six Sigma is a structured 

problem-solving discipline 

that works best on processes 

fundamental to an organisation’s 

operation or value creation. The 

Lean method reviews processes to 

identify and eliminate waste, and 

can also improve process flow. The 

complementary Six Sigma method 

uses statistics to understand why 

process outputs vary or cannot 

reach targets to create solutions. 

RailCorp has been using Lean 

Six Sigma since 2007 to better 


• Benchmarking – continuously 

look to improve performance by 

identifying best practice through 

Other key reform initiatives in 

2011-12 included: 

understand why assets are not 

consistently reliable and to help 

drive improvement. 

comparisons with industry, both 

locally and internationally. 

Value for money strategies 

employed during the reporting 

period include; 

• The comprehensive review of 

maintenance processes and 

procedures 

• The consolidation and 

streamlining of operations 

functions 

• Removal of bureaucratic 

processes and duplication 

• Reduction in management 

layers and renewed focus on 

consistency in processes and 

decision making 

• Work with Transport for NSW 

on Corporate and Shared 

Service (CSS) Reform, focusing 

on the establishment of clear 

accountabilities and new 

organisational structures. 

• A career development program, 

giving staff the opportunity to 

become qualified fitters and 

electricians 

• A new line management structure 

• Electronic time capture 

• Electronic rostering in the XPT 

Service Centre 

• Rolling out reform at the diesel 

depots and up-skilling fitters with 

car-building skills. 

Oscar maintenance 

Following its successful rolling stock 

maintenance reform, RailCorp was 

given the opportunity to maintain 

its new Oscar fleet. These trains will 

be maintained via a 24/7 operation, 

balanced general inspections and 

better use of condition monitoring. 

Continuous operation of the Oscar 

Eveleigh maintenance centre will 

allow crews to get more work done 

outside of the morning and evening 

peaks, when the trains are needed 

most – boosting staff utilisation and 

train availability. Monthly general 

Progress 

Lean Six Sigma projects have 

contributed substantially to 

improved asset reliability, 

supporting consistently better than 

92 per cent on-time running and 

delivering financial benefits. 

Asset reliability improvement 

projects have continued to focus 

on control circuits, points, train 

door, brake, traction and indication 

systems. Business efficiency 

projects have focused on improving 

fleet availability, improved vendor 

performance, faster response 

times, possession management, 

inventory, housekeeping and safety 

management. 

Asset reliability will remain a key 

focus for Lean Six Sigma project 

work as the benefits of fewer 

incidents and delays are directly 

and continually felt by customers. 

Seventy-three Lean Six Sigma 

projects have been undertaken 

since July 2011, with 30 being 

completed by 30 June 2012. 


These projects focused on waste 

reduction, improved turnaround 

time and greater utilisation of scarce 

resources. A3 thinking projects, 

a proven Lean concept, were 

introduced into RailCorp in the last 

year. Using the Plan-Do-Check- 

Adjust cycle these projects are 

utilised at the workplace to provide 

simple and quick solutions. These 

have been extremely successful, 

with a further 100 projects either 

commenced or completed by 

30 June 2012. 

An increasing number of projects 

have been supported by Lean Six 

Sigma to focus on the customer 

experience. These include improved 

customer communications during 

incidents, better ticket vending 

machine availability, reduced rail 

corridor vandalism and improved 

toilet availability on intercity 

trains. New projects under way 

will focus on continued reliability 

improvements and business 

efficiency projects to drive 

cost reductions. 

Fleet major maintenance 

and logistics contract 

In December 2011, RailCorp 

awarded a $1.4 billion contract to 

UGL Unipart Rail Services Pty Ltd (a 

joint venture between UGL Limited 

and Unipart Rail) to manage heavy 

maintenance and logistics for 1050 

carriages of RailCorp’s fleet. 

The contract covers a range of 

maintenance, engineering and 

logistics services for RailCorp’s 

electric train fleet, excluding the 

Millennium and Waratah (PPP) 

fleets, as well as project and 

logistics work for RailCorp’s 

diesel fleet. 

The contract will play a key role in 

RailCorp’s commitment to deliver 

safe, clean and reliable passenger 

services, and to deliver value for 

money to customers and taxpayers. 

It presents further opportunities by 

supporting existing reform projects 

and further improvements in fleet 

safety, availability, reliability and 

customer satisfaction. 

The contract replaces the existing 

maintenance and logistics contract, 

which commenced in 1993. The new 

contract will run for seven years, 

with the option for RailCorp to 

consider extensions totalling up to 

five years. 

Central to the new contract are 

‘gain-share’ provisions, which mean 

savings through innovation are 

shared between RailCorp and the 

contracting joint venture. 

Auto logbooks 

The aim of the auto logbook project 

is to provide an automated system 

based on a GPS satellite navigation 

display unit and other in-vehicle 

equipment to record trip details for 

reporting, such as Fringe Benefits 

Tax and Fuel Tax Credits. 

Benefits include: 

• Replacing the manual creation 

and processing of motor vehicle 

running sheets with an easy-touse 

driver entry of trip details and 

the reporting of this detail for 

interested parties 

• Better utilisation of RailCorp’s 

vehicle fleet and the reduction 

in costs of using short-term hire 

vehicles 

• Providing satellite navigation 

capabilities and Bluetooth 

functionality to the driver. 

Significant progress was made 

throughout the reporting period 

with full implentation occuring in 

2012-13. 

Consolidation of security 

monitoring facilities 

This reform improved efficiency, 

staff and passenger safety, security 

and incident response, through 

the development of enhanced 

detection, alarm management and 

monitoring systems. 

The security monitoring facility is 

a state-of-the-art CCTV and Help 

Point monitoring unit managed 

by RailCorp’s security division 

and located at Central Station. It 

replaces the former group remote 

monitoring locations around the 

RailCorp network and is now 

responsible for responding to Help 

Points and other alarms, monitoring 

the CCTV system for incidents and 

for managing the CCTV system. The 

project has also delivered significant 

improvements in terms of system 

resilience and productivity 

improvements. 

The centre is capable of responding 

to all Help Point calls from across 

the RailCorp network. Moreover, the 

CCTV system also receives alarms 

from ticket vending machines 

and is rolling out a capability to 

manage ‘video motion detection’ – 

movement activated alarms. 

CCTV Monitoring 

Every position in the centre is 

capable of monitoring every camera 

on the CityRail network, as well as 

cameras from a number of RailCorp 

buildings, CCTV retrieved from trains 

and live CCTV from Waratah trains. 

CCTV Management 

The facility will be the future 

repository for all CCTV data saved 

by RailCorp or NSW Police. 

The new system will replace the 

previous practice of filling in paper 

forms, distributing DVDs and 

limiting access to a small number 

of computers capable of 

viewing CCTV. 

42 


People 

Objective: A customerfocused 

workforce that is 

empowered, accountable, 

committed and proud of its 

achievements. 


At the heart of the Fixing the Trains program is the need 

to ensure not only that customers get excellent service 

but that taxpayers also get value for money through 

RailCorp operating as efficiently as it can. Delivering on this 

commitment, together with implementing transport-wide 

corporate and shared services reform, involves fundamental 

change for RailCorp and its people. 

The Our People Strategy provided 

the framework for driving 

improvements in workforce 

capacity, performance and culture 

in 2011-12. The outcomes achieved 

during this reporting period are 

outlined below. A rethink of these 

approaches will now be required in 

light of the transformational change 

agenda underway. 

Maximise performance 

This workstream provides the 

framework, tools, training, 

support and rewards to minimise 

unsatisfactory performance and 

maximise good performance. 

A Leadership and Management 

Heat Map Process has been 

developed and piloted. The heat 

map is an organisational diagnostic 

tool that helps identify positive as 

well as negative performance in 

operational units across a business. 

Two pilots were undertaken to 

test heat mapping at RailCorp. 

One focused on outstanding 

performance in the Service 

Delivery Group and one on 

poor performance in the Asset 

Operations Group. 

The outstanding performance pilot 

sought to identify managers and 

leaders who have demonstrated 

continuous improvement over a 

period of time against specific 

performance indicators. A defined 

methodology was applied and 

as a result, three managers were 

recognised for the improved 

performance of their unit. Case 

studies were developed as a 

form of recognition, outlining 

the actions and initiatives the 

managers undertook to achieve this 

outstanding performance. These 

case studies form the basis for 

further communication and sharing 

of best practice with other parts of 

the organisation. 

The poor performance pilot in the 

Rolling Stock Division was delivered 

in two phases. The main objective 

of this pilot was to identify areas 

of the division where performance 

improvement was required. This 

was followed by consultation with 

line managers to identify targeted 

solutions for implementation. 


Transform culture 

This workstream aims to define 

and embed a values-based 

organisational culture that enables 

strategic objectives to be met. 

The 2011 Culture Survey received a 

record response rate of 56 per cent 

across the organisation. The results 

indicated a steady improvement 

across all corporate values and were 

communicated through briefing 

sessions across the organisation. 

The Just Culture Program was 

reviewed to identify strategies 

to further embed the principles 

and behaviours into ‘business as 

usual’ and enable the program to 

be sustainably managed by the 

business in the future. An updated 

training curriculum was developed 

which provides more standardised 

messaging across the Just Culture 

principles and alignment with the 

corporate values. 

Engage employees 

This workstream aims to engage 

staff to support the purpose and 

values of RailCorp and demonstrate 

their commitment through 

behaviour and purpose. 

Promotion of RailCorp’s people 

initiatives has increased through 

communication at staff briefings 

and Leader’s Forums. In addition, 

a 2012 People Calendar was 

developed to inform RailCorp 

people of the activities that impact 

on them and areas of interest to 

employees and their families. 

The review of RailCorp’s induction 

process is underway. The 

participation in the induction 

e-learning project team culminated 

in the delivery of the online 

‘Introduction to RailCorp’ interactive 

e-learning tool for new starters. 

Ongoing stakeholder engagement 

has been an important part of the 

design of the induction process. As 

part of the ‘Removing Bureaucracy’ 

commitment, a review of the Local 

Managers’ Induction checklist 

has commenced with input from 

stakeholders. 

The Employee Life Cycle framework 

was developed in mid 2011. This 

provides a tool to identify areas in 

the life cycle where HR may develop 

strategies to enhance employee 

engagement. An Employee 

Engagement Strategy was 

developed as well as a Dashboard 

that can be used for ongoing 

measurement of engagement. 

Develop managers and 

leaders 

RailCorp recognises that managers 

and leaders play a crucial role in 

driving the performance of staff and 

achieving business goals. For this 

reason, RailCorp is investing in the 

development of its managers and 

leaders. 

The first edition of the RailCorp 

Manager’s Handbook was 

developed and provided to all 

RailCorp managers. The handbook 

assists managers in understanding 

their roles and responsibilities 

and provides easy access to 

tools to assist them in their role. 

The handbook was distributed in 

conjunction with a comprehensive 

communication plan including 

numerous briefings at business 

team meetings. 

In a continued effort to embed 

the Leadership and Management 

Development Framework, a 

schedule of master classes was 

developed to support management 

development at RailCorp. Sessions 

have focus on communication, 

dignity and respect, change, and 

recruitment. A workshop to support 

and encourage the development 

of managers and leaders in the 

workplace was developed and 

piloted within the Rolling Stock 

Division with positive results. 

The Management Development 

Program identifies manager 

facilitated learning activities and 

courses that aim to increase the 

capabilities of our managers. 

Mandatory modules completed 

include Manage People and 

Performance, Ethical Behaviour 

& Conduct, Financial Awareness, 

Safety, Just Culture and Leadership 

Awareness. 

Asset Operations Group continued 

to run the ‘We Lead the Way’ 

Leadership Challenge. Within the 

program, participants develop 

a greater understanding of their 

leadership styles, and how to be a 

more effective leader. 

Build knowledge and 

skills 

This workstream aims to ensure 

that RailCorp develops and retains 

knowledge and skills to mitigate 

business risk and enable the 

continuity of our business. 

A Lessons Learned System has 

been designed and developed. This 

system addresses a strong business 

need to improve the way RailCorp 

identifies, captures and shares 

lessons learned from projects. It 

also allows RailCorp to leverage 

project successes and reduce the 

cost of repeated mistakes. A pilot 

was successfully conducted in the 

Projects Division of the Engineering 

and Projects Group. 

A Knowledge Continuity Project 

was rolled out with five subject 

matter experts in the Engineering 

and Projects Group. A Knowledge 

Continuity Tool Kit was piloted 

and updated based on feedback 

from participants. A Knowledge 

44 


Continuity Roadmap was also 

for Rail Innovation (CRC) and to the 

Gay, Lesbian, Bisexual, Transgender 

developed, and awareness sessions 

Australian Rail Association (ARA) 

and Intersex people. 

held. Scoping of knowledge 

for national rail industry projects. 

continuity in the business has 

commenced to mitigate business 

The CRC project is aimed at 

enhancing the image of the rail 

Women 

risk of knowledge loss. 

Secure RailCorp’s future 

workforce 

This workstream is targeted at 

attracting, developing and retaining 

appropriate numbers of people at 

the right levels of the organisation 

with the necessary operational, 

technical and human skills to meet 

current and future requirements. 

Implementation of the Success 

Factors Workforce Planning 

application was delivered. The 

application went live in April 2012 

and work is being undertaken to 

customise the workforce reporting 

and planning components to the 

RailCorp environment. 

industry as an employment sector 

and identifying career options across 

the industry. The ARA project is 

aimed at identifying industry wide 

resources issues. These two projects 

are targeted at improving the ability 

of the rail industry to attract and 

retain resources. 

Equity and diversity 

achievements in 2011-12 

Awards 

RailCorp’s equity and diversity 

programs have been recognised by 

two distinguished awards: 

• NSW Carers Award; Winner 

of Carer Friendly Workplace 

category 

Fifty-four female employees in 

non-managerial and 

non-traditional roles participated 

in the Springboard Women’s 

Development Program, which 

aimed to assist them with career 

development at RailCorp. 

International Women’s Day was 

celebrated on 8 March 2012 by 

inviting female students, performers 

and guest speakers to Central 

Station. Twenty female employees 

were sponsored to attend the 

UNIFEM (UN Women Australia) 

breakfast. 

Aboriginal and Torres Strait 

Islander people 

Four Aboriginal undergraduates 

are continuing their placements 


A RailCorp Workforce Profile has 

been developed which provides 

baseline data on the state of the 

current workforce, its challenges 

and risks. As well as reviewing 

the internal workforce issues, the 

reports also assessed the RailCorp 

workforce against the external 

environment. This report identified 

a number of workforce areas and 

issues requiring attention. Data 

from this profile will help inform the 

workforce planning process. 

A review of the RailCorp 

engineering resources was 

conducted during the year to 

determine the scope of available 

resources, competency streams, 

career pathways and potential 

resourcing risks. These resource 

maps will be utilised in the 

workforce planning process. 

• Australian Human Resources 

Institute Awards; finalist of the 

Inclusive Workplace of the Year 

category. 

Policies and procedures 

RailCorp established a Flexible 

Work Practices Procedure 

introducing a range of options, such 

as variable start/finish times, parttime 

work, purchased leave, phased 

retirement and individual flexibility 

agreements. 

Diversity networks 

RailCorp continued to resource 

and manage six employee diversity 

networks dedicated to advising 

and assisting RailCorp in enhancing 

equity for Women, Aboriginal & 

Torres Strait Islanders, Culturally 

at RailCorp under the Aboriginal 

Cadetship Program. 

Reconciliation Week was celebrated 

by staff participating in an 

Aboriginal painting workshop held 

in May 2012. 

NAIDOC Week was celebrated 

by unveiling Aboriginal artwork 

displayed on a CountryLink train. 

People with a disability 

Through the Disability Traineeship 

Program, five people with a Disability 

were offered one-year paid 

traineeships to complete Certificate 

III in Business Administration and 

on-the-job training. 

International Day of People 

with a Disability was celebrated 

in December 2011 by inviting 

RailCorp provided subject matter 

& Linguistically Diverse people, 

customers to Central Station where 

expertise and reference material to 

People with a Disability, Carers, and 

accessible features were showcased 

the Cooperative Research Centre 

by guided tours. 


Culturally and linguistically 

diverse people 

The Community Language 

Assistance Scheme was launched 

as a pilot program and four 

employers have been recognised 

as interpreters to assist customers 

who speak Italian, Hindi, Arabic and 

Tagalog languages. 

Eighteen employees are taking 

part in a 20-day Workplace English 

Language and Literacy program to 

improve their communication skills. 

Gay, lesbian, bisexual, 

transgender and intersex 

people 

On 3 March 2012, 80 participants 

marched in the Sydney Gay and 

Lesbian Mardi Gras Parade with the 

RailCorp float promoting equality 

for GLBTI people. 

Other initiatives 

Approximately 100 managers 

participated at the annual Diversity 

Conference presented by a 

panel of academics and diversity 

practitioners. 

Sixty-three employees in nonmanagerial 

roles participated in 

four Job Seeking Skills Workshops 

to enhance their ability to apply for 

positions and achieve promotions. 

Two Transition to Retirement 

Seminars were held to raise 

awareness among managers 

and staff about retirement and 

capturing the critical knowledge of 

retiring staff. 

Health and wellbeing 

A national training program 

and online learning exercise for 

Authorised Health Professionals 

was launched in 2012. The training 

program has been adopted 

by rail transport operators in 

all mainland states and in New 

Zealand. It creates a national panel 

of Authorised Health Professionals 

for use by industry. The provision of 

instruction to doctors undertaking 

rail safety health assessments was 

a recommendation of the Special 

Commission of Enquiry into the 

Waterfall train ccident. 

A manufacturer has been engaged 

to produce to order RailCorp’s 

colour vision simulated test, known 

as the RailCorp Lantern. 

A program of drug and alcohol 

assessments was developed 

and incorporated into the health 

assessment process for contractors 

who have had previous positive 

drug or alcohol tests. 

Health Services has continued to 

manage RailCorp’s automated 

external defibrillator (AED) 

program, with 105 AEDs deployed 

and four lives saved since 2009. 

RailCorp’s health promotion 

programs for 2011-12 included the 

following: 

• Teams for the City2Surf and the 

JP Morgan Corporate Challenge, 

with employee participation 

increasing by 20 and 21 per cent 

respectively 

• A 21 per cent increase in 

participation in the pedometer 

challenge 

• Health fairs, in which 1200 

employees participated in 2011-12 

• The influenza vaccination 

program, with participants taking 

0.63 days less sick leave per 

annum than non-participants 

• The SafeSpine program 

commenced in March 2012 

in conjunction with Asset 

Operations Group. The program 

is aimed is at reducing manual 

injuries and for employees to gain 

a greater understanding of the 

activities and work tasks which 

may trigger injuries 

• The inaugural Quit Smoking 

Program sustained a quit rate of 

33 per cent of total participants 

after six months 

• Skin checks were conducted 

for 107 people at the Safety 

Competition, resulting in 37 

referrals 

• The occupational nurse program 

had a 30 per cent increase in 

referrals compared to 2011. 

The annualised usage of the 

Employee Assistance Program 

was five per cent, with nearly 900 

employees utilising the service over 

the reporting period for an average 

of two hours per employee. 

Critical incident support was 

provided to 279 employees, with 

an average of just below 7 hours of 

trauma counselling per employee. 

A decrease in employees requiring 

support, but an increase in 

counselling hours provided, reflects 

the complexity of many of the 

cases, specifically fatalities. 

The Managers’ Assistance Program 

was used by 41 managers for a 

total of 27 hours service, averaging 

approximately 40 minutes per 

employee. 

A health e-learning module was 

launched on 22 February 2012. 

This is a new interactive method to 

educate employees how common 

lifestyle factors impact. 

46 


Financial 

Statements 

Statement by the Chief Executive 48 

Statement of Comprehensive Income 49 

Statement of Financial Position 50 

Statement of Changes in Equity 51 

Statement of Cash Flows 53 

Notes to the Financial Statements 

Note 1 Reporting entity and financial statements 54 

Note 2 Summary of accounting policies 55 

Note 3 Income 67 

Note 4 Expenses 68 

Note 5 Cash and cash equivalents 70 

Note 6 Trade and other receivables 71 

Note 7 Inventories 72 

Financial Statements 

Note 8 Non-current assets held for sale 73 

Note 9 Property, plant and equipment 73 

Note 10 Intangible assets 76 

Note 11 Other assets 76 

Note 12 Trade and other payables 77 

Note 13 Borrowings and finance lease liabilities 77 

Note 14 Provisions 78 

Note 15 Contributed equity 89 

Note 16 Reserves 90 

Note 17 Retained earnings 90 

Note 18 Expenditure commitments 90 

Note 19 Contingent liabilities and contingent assets 92 

Note 20 Financial instruments 93 

Note 21 Joint venture 102 

Note 22 Events occurring after reporting date 102 

Independent Auditor’s Report 103 


47

Statement by the Chief Executive 

In relation to the Financial Statements for the year ended 30 June 2012 

Pursuant to section 41C (1B) of the Public Finance and Audit Act 1983 and clause 7 of the Public Finance and 

Audit Regulation 2010 I declare that: 

(a) In my opinion, the accompanying financial statements, read in conjunction with the notes thereto, exhibit a true and 

fair view of the financial position of RailCorp and the consolidated entity as at 30 June 2012 and of their financial 

performance for the year ended 30 June 2012 

(b) The financial statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 

1983, the Public Finance and Audit Regulation 2010, the Australian Accounting Standards, which includes Australian 

Accounting Interpretations, and Treasurer’s directions. 

(c) I am not aware, as at the date of this statement, of any circumstances which would render any particulars included in 

the financial statements to be misleading or inaccurate. 

Rob Mason 


27 September 2012 

48 


(Start of audited financial statements) 

Statement of Comprehensive Income for the year ended 30 June 2012 

Income 

Consolidated 

Parent 

2011-12 2010-11 2011-12 2010-11 

Note $000 $000 $000 $000 

Passenger services revenue 766 180 703 528 766 180 703 528 

Non passenger revenue 3.1 346 322 309 962 345 703 309 850 

Interest 689 702 677 699 

Income from operating activities 1 113 191 1 014 192 1 112 560 1 014 077 

Expenses 

Operating expenses 

- Payroll costs and other employee 

benefits 4.1 1 616 367 1 425 771 1 615 792 1 425 612 

- Other operating expenses 4.3 1 302 886 1 244 137 1 302 840 1 244 212 

Depreciation and amortisation 9.2,10.2 873 216 814 825 873 208 814 824 

Finance costs 4.5 32 943 17 803 32 943 17 803 

Total expenses 3 825 412 3 502 536 3 824 783 3 502 451 


Contributions (2 712 221) (2 488 344) (2 712 223) (2 488 374) 

Government subsidies 1 485 107 1 389 832 1 485 107 1 389 832 

Government concessions 248 785 247 389 248 785 247 389 

Other Government operating subsidies 779 809 779 809 



Capital Contributions (977 550) (850 314) (977 552) (850 344) 

Contributions for capital expenditure 3.2 1 396 584 872 801 1 396 584 872 801 

Surplus for the year from 

continuing operations 419 034 22 487 419 032 22 457 

Other Comprehensive Income 

Net gain/(loss) in forward foreign 

exchange 16 994 (2 573) 994 (2 573) 

Net gain/(loss) in commodity swaps 16 (4 481) 4 524 (4 481) 4 524 

Revaluation of property, plant and 

equipment 16 694 4 606 315 694 4 606 315 

Superannuation actuarial 

gains/(losses) on defined benefit 

schemes 17 (345 091) (20 931) (345 091) (20 931) 

Other Comprehensive Income for 

the year (347 884) 4 587 335 (347 884) 4 587 335 

Total Comprehensive Income for 

the year 

71 150 4 609 822 71 148 4 609 792 

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes. 


49

Statement of Financial Position as at 30 June 2012 

Current assets 

Consolidated 

Parent 

Note 30.6.2012 30.6.2011 30.6.2012 30.6.2011 

$000 $000 $000 $000 

Cash and cash equivalents 5.1 77 609 15 034 77 467 14 925 

Trade and other receivables 6.1 189 480 187 095 189 428 187 092 

Security deposits 43 41 43 41 

Inventories 7 35 017 34 193 35 006 34 193 

Non-current assets classified as 

held for sale 8 1 754 7 801 1 754 7 801 

Derivative financial instruments 20.1 788 3 743 788 3 743 

Total current assets 304 691 247 907 304 486 247 795 

Non-current assets 

Inventories 7 32 347 28 878 32 347 28 878 

Trade and other receivables 6.1 34 769 28 599 34 769 28 599 

Property, plant and equipment 9 25 860 971 24 464 588 25 860 956 24 464 579 

Intangible assets 10 242 771 173 467 242 765 173 459 

Derivative financial instruments 20.1 28 992 28 992 

Other 11 70 095 69 977 70 095 69 977 

Total non-current assets 26 240 981 24 766 501 26 240 960 24 766 484 

Total assets 26 545 672 25 014 408 26 545 446 25 014 279 

Current liabilities 

Trade and other payables 12 663 457 525 519 663 296 525 432 

Borrowings and finance lease 

liabilities 13 13 663 334 661 13 663 334 661 

Provisions 14 645 192 510 203 645 159 510 191 

Derivative financial instruments 20.1 13 811 14 209 13 811 14 209 

Total current liabilities 1 336 123 1 384 592 1 335 929 1 384 493 

Non-current liabilities 

Borrowings and finance lease 

liabilities 13 599 266 379 908 599 266 379 908 

Provisions 14 823 296 465 333 823 296 465 333 

Derivative financial instruments 20.1 2 355 2 389 2 355 2 389 

Total non-current liabilities 1 424 917 847 630 1 424 917 847 630 

Total liabilities 2 761 040 2 232 222 2 760 846 2 232 123 

Net assets 23 784 632 22 782 186 23 784 600 22 782 156 

Equity 

Contributed equity 15.1 14 647 015 13 715 719 14 647 015 13 715 719 

Reserves 16 8 210 203 8 230 505 8 210 203 8 230 505 

Retained earnings 17 927 414 835 962 927 382 835 932 

Total equity 23 784 632 22 782 186 23 784 600 22 782 156 

The Statement of Financial Position should be read in conjunction with the accompanying notes. 

50 


Statement of Changes in Equity for the year ended 30 June 2012 

Consolidated 

Note 

Contributed 

Equity 

$000 

Retained 

Earnings 

$000 

Asset 

Revaluation 

$000 

Other 

Reserves 

$000 

Total 

$000 

Balance at 1 July 2011 13 715 719 835 962 8 242 368 (11 863) 22 782 186 

Surplus for the year - 419 034 - - 419 034 

Reserves transferred to/(from) Retained 

Earnings 16,17 - 17 509 (17 509) - - 


Net gain/(loss) in forward foreign exchange 16 - - - 994 994 

Net gain/(loss) in commodity swaps 16 - - - (4 481) (4 481) 

Increase/(decrease) in Asset Revaluation 

Reserve 16 - - 694 - 694 

Superannuation actuarial gains/(losses) on 

defined benefit schemes 17 - (345 091) - - (345 091) 

Total Other Comprehensive Income for 

the year - (345 091) 694 (3 487) (347 884) 

Increase/(decrease) in net assets from 

equity transfers (contribution by owners) 15.2 931 296 - - - 931 296 

BALANCE AS AT 30 JUNE 2012 14 647 015 927 414 8 225 553 (15 350) 23 784 632 

Balance at 1 July 2010 13 600 268 832 230 3 638 229 (13 814) 18 056 913 



Earnings 16,17 - 2 176 (2 176) - - 


Net gain/(loss) in forward foreign exchange 16 - - - (2 573) (2 573) 

Net gain/(loss) in commodity swaps 16 - - - 4 524 4 524 


Reserve 16 - - 4 606 315 - 4 606 315 




the year - (20 931) 4 606 315 1 951 4 587 335 



BALANCE AS AT 30 JUNE 2011 13 715 719 835 962 8 242 368 (11 863) 22 782 186 


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


51

Statement of Changes in Equity for the year ended 30 June 2012 

Parent 

Note 

Contributed 

Equity 

$000 

Retained 

Earnings 

$000 

Asset 

Revaluation 

$000 

Other 

Reserves 

$000 

Total 

$000 

Balance at 1 July 2011 

13 715 719 835 932 8 242 368 (11 863) 22 782 156 



Earnings 16,17 - 17 509 (17 509) - - 


Net gain/(loss) in forward foreign exchange 16 - - - 994 994 

Net gain/(loss) in commodity swaps 16 - - - (4 481) (4 481) 


Reserve 16 - - 694 - 694 




the year - (345 091) 694 (3 487) (347 884) 



BALANCE AS AT 30 JUNE 2012 14 647 015 927 382 8 225 553 (15 350) 23 784 600 

Balance at 1 July 2010 13 600 268 832 230 3 638 229 (13 814) 18 056 913 



Earnings 16,17 - 2 176 (2 176) - - 


Net gain/(loss) in forward foreign exchange 16 - - - (2 573) (2 573) 

Net gain/(loss) in commodity swaps 16 - - - 4 524 4 524 


Reserve 16 - - 4 606 315 - 4 606 315 




the year - (20 931) 4 606 315 1 951 4 587 335 



BALANCE AS AT 30 JUNE 2011 13 715 719 835 932 8 242 368 (11 863) 22 782 156 

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

52 


Statement of Cash Flows for the year ended 30 June 2012 

Cash flows from operating activities 

Consolidated 

Parent 

Note 2011-12 2010-11 2011-12 2010-11 

$000 $000 $000 $000 

Cash received 

Passenger services 767 721 703 057 767 721 703 057 

Other receipts from customers and others 573 662 477 065 573 013 476 953 

Government subsidies and concessions 1 733 892 1 637 221 1 733 892 1 637 221 

Other Government operating subsidies 779 809 779 809 

Interest received 689 702 677 699 

Total cash received 3 076 743 2 818 854 3 076 082 2 818 739 

Cash used 

Payments to suppliers, employees and 

others (2 837 635) (2 752 688) (2 837 019) (2 752 700) 

Interest paid (33 169) (9 229) (33 169) (9 229) 

Total cash used (2 870 804) (2 761 917) (2 870 188) (2 761 929) 

Net cash from operating activities 5.2 205 939 56 937 205 894 56 810 

Cash flows from investing activities 

Cash received 

Capital grants 1 345 725 875 960 1 345 725 875 960 

Property, plant and equipment and 

intangible assets disposals 1 500 2 969 1 500 2 969 

Total cash received 1 347 225 878 929 1 347 225 878 929 

Cash used 

Property, plant and equipment and 

intangible assets acquisitions (1 264 142) (1 358 040) (1 264 130) (1 358 022) 

Milestone advances to a supplier - (12 000) - (12 000) 

Total cash used (1 264 142) (1 370 040) (1 264 130) (1 370 022) 

Net cash from / (used in) investing 

activities 83 083 (491 111) 83 095 (491 093) 

Cash flows from financing activities 

Cash received 

Proceeds from borrowings 3 086 602 3 012 153 3 086 602 3 012 153 


Total cash received 3 086 602 3 012 153 3 086 602 3 012 153 

Cash used 

Repayment of borrowings (3 418 900) (2 587 636) (3 418 900) (2 587 636) 

Total cash used ( 3 418 900) (2 587 636) (3 418 900) (2 587 636) 

Net cash from / (used in) financing 

activities (332 298) 424 517 (332 298) 424 517 

Net (decrease)/increase in cash and 

cash equivalents (43 276) (9 657) (43 309) (9 766) 

Cash and cash equivalents at the 

beginning of the year 15 034 24 691 14 925 24 691 

Cash transferred in from TfNSW 105 851 - 105 851 - 

Cash and cash equivalents at the end of 

the year 

5.1 77 609 15 034 77 467 14 925 

The Statement of Cash Flows should be read in conjunction with the accompanying notes 


53

Notes to the Financial Statements for the year ended 30 June 2012 

Note 1 Reporting entity and financial statements 

(a) Reporting Entity 

Rail Corporation New South Wales (RailCorp) is a Statutory Authority constituted under the Transport 

Administration Act 1988 and scheduled under the Public Finance and Audit Act 1983. It is domiciled in 

Australia and its principal office is at 477 Pitt Street Sydney, NSW 2000. Its principal objectives are: 

• to deliver safe and reliable railway passenger services in New South Wales in an efficient, effective 

and financially responsible manner, and 

• to ensure that the part of the NSW rail network vested in or owned by it enables safe and reliable 

railway passenger and freight services to be provided in an efficient, effective and financially 

responsible manner. 

RailCorp, the parent entity and Trainworks Ltd, the controlled entity, constitute the reporting economic 

entity in these consolidated financial statements. Trainworks is a company limited by guarantee and 

RailCorp is the sole member. Trainworks commenced operations on 4 April 2011. 

The Transport Legislation Amendment Act 2011 established Transport for NSW (TfNSW) as a controlled 

entity of the Department of Transport, while RailCorp is a controlled entity of Transport for NSW. The 

Department of Transport is consolidated as part of the NSW Total State Sector Accounts. 

On 15 May 2012, the Minister for Transport announced the creation of a new rail transport model. NSW 

Trains and Sydney Trains will be formed as two separate organisations structured to meet the different 

needs of regional and intercity, and Sydney customers. The change is likely to be effective on or after 1 

July 2013. 

NSW Trains will operate services currently operated by CountryLink and CityRail Intercity brands. Sydney 

Trains will operate the remaining Sydney services currently operated by the CityRail brand. 

In addition a separate cleaning company, Transport Cleaning Services, will be established during 2012-13. 

The proposed new organisations, NSW Trains, Sydney Trains and Transport Cleaning Services will 

operate as public subsidiary companies under RailCorp. 

(b) Principles of consolidation 

The consolidated financial statements comprise the financial statements of RailCorp (the parent entity) and 

its controlled entity, after elimination of all inter-entity transactions and balances. 

(c) 

Authorisation of the Financial Statements 

The Financial Statements were authorised for issue by the Chief Executive on the date on which the 

accompanying Statement by the Chief Executive was signed. 

Note 2 Summary of accounting policies 

2.1 Basis of accounting 

The consolidated financial statements are general purpose Financial Statements prepared in accordance 

with Australian Accounting Standards, which includes Australian Accounting Interpretations, the Public 

Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010, and specific directions issued 

by the Treasurer. 

Generally, the historical cost basis of accounting has been adopted and these financial statements do not 

take into account changing money values or current valuations. However, property, plant and equipment, 

certain provisions, and derivative financial assets and liabilities are measured at fair value. 

Refer Notes 2.3(ii), 2.14(ii), and 2.19. 

The accrual basis of accounting has been adopted in the preparation of the financial statements, except for 

cash flow information. 

RailCorp and the controlled entity are not-for-profit entities for accounting purposes. 

The financial statements have been prepared on a going concern basis which assumes that RailCorp and 

the controlled entity are expected to be able to pay their debts as and when they fall due and continue in 

operation without any intention or necessity to liquidate or otherwise wind up their operations. Despite 

current liabilities exceeding current assets at year end, RailCorp’s continued operation and ability to pay its 

54 



Note 2 Summary of accounting policies (continued) 

2.1 Basis of accounting (continued) 

debts are satisfied because of annual appropriations of funds by the Government to support RailCorp in 

delivering services, offering fare concessions and undertaking capital works during the ensuing year. The 

NSW Government funds the majority of the cost of operation of the rail network. The proportion of total 

expenses met by the travelling public through fares was 20.1% in 2011-12 (20.1% in 2010-11). 

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency. 

Certain comparatives have been reclassified to conform to the current year’s presentation. 

2.1.1 Change in accounting policy 

There have been no changes in accounting policy in 2011-12 

2.2 Adoption of new and revised Accounting Standards 

The Financial Statements have adopted all the new and revised Standards and Interpretations issued by 

the Australian Accounting Standards Board (the AASB) that are relevant to RailCorp and its controlled 

entity effective for the annual reporting period beginning on 1 July 2011. The adoption of these new and 

revised Standards and Interpretations has not resulted in any significant changes to RailCorp and 

controlled entity accounting policies. 

RailCorp and the controlled entity did not early adopt any new Accounting Standards and Interpretations 

that are not yet effective. NSW Treasury has mandated not to early adopt any of the standards that are not 

effective. 

The following new Accounting Standards and Interpretations have not yet been adopted and are not 

effective as at 30 June 2012. 

AASB 

Amendment 

AASB 2011-9 

AASB 9 

AASB 10 

AASB 12 

AASB 13 

AASB 119 

AASB 2011-4 

AASB 1053 

Affected Standard(s) and Interpretations 

Amendments to Australian Accounting Standards – Presentation of 

Other Comprehensive Income (AASB 1, 5, 7, 101, 112, 120, 121, 132, 

133, 134, 1039 & 1049) 

Financial Instruments. Consequential amendments were also made to 

other standards as a result of AASB 9, introduced by AASB 2009 -11 

and superseded by AASB 2010 -7 and 2010 -10 

Consolidated Financial Statements. Consequential amendments were 

also made to other standards via 2011-7 (AASB 1, 2, 3, 5, 7, 9, 2009- 

11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 

1038 and Interpretations 5, 9, 16 & 17) 

Disclosure relating of Interests in Other Entities. Interest in 

subsidiaries, joint arrangements, associates and other structures. 

Fair Value assessment. Consequential amendments were also made 

to standards via AASB 2011-8 (AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 

2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 

132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and 

Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132) 

Employee Benefits. Consequential amendments were also made to 

standards via AASB 2011-10 (AASB 1, AASB 8, AASB 101, AASB 

124, AASB 134, AASB 1049 & AASB 2011-8 and Interpretation 14). 

Amendments to Australian Accounting Standards to remove individual 

key Management Personnel Disclosure (AASB 124) 

Application of Tiers of Australian Accounting Standards, being Tier 1 

and Tier 2. 

Change in 

Accounting 

Standard 

Application date 

of Standard 

1 Sept 2011 1 July 2012 

1 Dec 2010 1 Jan 2013 

1 Aug 2011 1 Jan 2013 

1 Aug 2011 1 Jan 2013 

1 Sep 2011 1 Jan 2013 

1 Sep 2011 1 Jan 2013 

1 Sept 2011 1 July 2013 

1 Sept 2011 1 July 2013 


The impact of these standards and interpretations on the Financial Statements is not expected to be 

significant. 


55



2.3 Financial instruments 

Financial instruments are contracts that give rise to both a financial asset of one entity and a financial 

liability (or equity instrument) of another entity. They include cash and cash equivalents, receivables, 

payables, borrowings and derivatives (forward foreign exchange contracts, and commodity swap 

contracts). 

(i) 

Recognition 

A financial asset or financial liability is recognised when RailCorp becomes a party to the contractual 

provisions of the instrument. 

Financial assets are derecognised when the contractual rights to the associated cash flows expire, are 

effectively transferred, or are otherwise lost. Financial liabilities are derecognised when the contractual 

obligation is discharged, is cancelled, or expires. 

Any applicable amortisation, impairment loss (or reversal), or fair value adjustment is recognised in the 

income statement. 

On derecognition, any difference between the items carrying amount and the consideration received or 

paid is recognised in the income statement. 

(ii) 

Measurement 

On initial recognition, a financial asset or financial liability is measured at its fair value (which is usually its 

cost) plus any directly-attributable transaction costs. 

After initial recognition, receivables and payables are carried in the Statement of Financial Position at 

amortised cost, which is a reasonable approximation of their fair value. Borrowings are carried at amortised 

cost. Their fair value at year end is disclosed in note 13. Derivatives are carried at fair value. 

The fair value of borrowings and derivatives is determined at year end as the quoted offer price or the riskadjusted 

market price of the instrument. It represents current market value. 

(iii) 

Hedging 

Derivative financial instruments are used to hedge against exposures to foreign currency risk on overseas 

purchase commitments and on commodity price risk on forecast distillate and electricity purchases (where 

applicable). 

Forward foreign exchange contracts are used to hedge against currency risk on firm commitments for the 

purchase of goods or services from overseas suppliers. These contracts entail a right to receive a fixed 

amount of foreign currency at a specified future date, which is offset by an obligation to pay a fixed amount 

of domestic currency at that time. 

Forward foreign exchange contracts and commodity swap contracts are used to hedge against commodity 

price risk on forecast purchases of distillate. The contracts effectively entail a right to buy a specified 

quantity of distillate at a fixed price on a future date, which is offset by an obligation to sell a similar quantity 

at its prevailing monthly average market price at that time. 

RailCorp policy for electricity hedging is similar to distillate operations. Electricity hedging applies only to 

periods not under a fixed price contract. Hedges are subsequently closed out once a fixed price contract is 

in place. 

(iv) 

Hedge accounting 

Cash flow hedge accounting is adopted for all hedging relationships involving forward foreign exchange 

contracts and commodity swap contracts. The portion of the gain or loss on the hedging instrument that is 

determined to be an effective hedge is initially recognised directly in the Hedging Reserve. When the cash 

flow in relation to the hedged item eventually occurs, the gain or loss is transferred from the Reserve to 

property, plant and equipment (in the case of equipment purchases) or to inventories (in the case of 

distillate purchases) where it is included in the cost of the hedged item. If the hedge is ineffective the 

56 




2.3 Financial instruments (continued) 

(iv) Hedge accounting (continued) 

portion of the gain or loss on the ineffective portion of the hedging instrument is recognised immediately in 

the income statement. 

Hedge accounting is used on all RailCorp exposures. The hedging relationship is formally designated and 

documented at the inception of the hedge; the hedge is expected to be highly effective; the effectiveness is 

measurable, assessed on a quarterly basis and is actually achieved; and the hedged forecast transaction 

remains highly probable. 

Hedge accounting is discontinued when the hedging instrument expires, is sold, is terminated, is exercised, 

no longer meets the hedge accounting criteria, has its designation revoked, or if the hedged forecast 

transaction is no longer expected to occur. Generally, any associated cumulative gain or loss in the 

Hedging Reserve is only transferred out when the hedged cash flow eventually occurs. However, if the 

hedged transaction is no longer expected to occur, the gain or loss is immediately transferred to the income 

statement. 

Refer Note 20. 

2.4 Taxes 

(i) Income tax equivalents 

RailCorp and the controlled entity are exempt from the National Tax Equivalent Regime (NTER) and the 

Tax Equivalent Regime (TER) and are not required to pay income tax. 

(ii) 

Goods and Services Tax 

Revenues, expenses and assets are generally recognised net of the amount of Goods and Services Tax 

(GST). However, receivables and payables are stated with the amount of GST included, and GST that is 

not recoverable from the Australian Taxation Office (ATO) is recognised as part of the relevant asset or 

expense. 


The net amount of GST recoverable from (or payable to) the ATO is recognised as part of receivables (or 

payables) in the Statement of Financial Position. Cash flows are included in the Cash Flow Statement on a 

gross basis and the GST component of any cash flow arising from investing activities that is recoverable 

from (or payable to) the ATO is classified as an operating cash flow. 

(iii) 

State Taxes 

RailCorp being a statutory authority representing the Crown means that it is exempt from land tax levied 

after 2009. 

2.5 Leases 

The determination of whether an arrangement is or contains a lease is based on the substance of the 

arrangement and requires an assessment of whether the fulfilment of the arrangement is dependant on the 

use of a specific asset or assets and the arrangement conveys a right to use the asset. 

(i) 

Details of operating leasing arrangements 

Various operating leases are in place. 

The NSW rail network in the country rail area is used by RailCorp as lessee under 10 or 15 year, nonexclusive, 

non-cancellable operating leases (access agreements). The lease rental (access fee) is 

reviewed annually. 

Certain Victorian and Queensland railways and stations are used by RailCorp as lessee under informal 

non-exclusive operating leases (access agreements). 


57



2.5 Leases (continued) 

Coaches for rural passenger services and buses for use during service disruptions are obtained under 

various operating leases. The rural coaches are obtained under 3 year non-cancellable leases, renewable 

at RailCorp’s option for up to 2 years. 

Motor vehicles are obtained under 3 or 4 year operating leases. Rentals are all contingent, being based on 

floating interest rates. 

Some office accommodation is obtained under operating leases. Some leases are renewable at RailCorp’s 

option for periods up to 5 years. 

Some telecommunications facilities in the country rail area are obtained under a non-cancellable operating 

lease. 

Some items of office equipment and plant are also obtained under operating leases. 

RailCorp has granted various operating leases (access agreements) to other rail operators giving them 

non-exclusive access to the metropolitan rail network or stations. Such leases generally cover a 5 year 

period. 

Various real estate leases have also been granted (including air space and advertising rights), sometimes 

covering long periods (up to 99 years). To the extent the initial term of the lease is greater than 50 years 

then these leases are treated as finance leases – refer Note 2.5 (iv). 

(ii) 

Details of PPP finance leasing arrangements 

An agreement is in place for a Rollingstock Public Private Partnership (PPP), which incorporates finance 

leases, whereby Reliance Rail will: 

• Design, manufacture and commission a total of 626 carriages, together with simulators for training; 

• Design, manufacture and commission a maintenance facility on RailCorp land at Auburn; 

• Make a certain number of 8 car train sets available for RailCorp’s use over the term of the contract; 

(the term continues for 30 years after the delivery of the tenth last set, i.e. until about 2043). 

• Provide a maintenance facility for the sets over the term of the contract; 

• Decommission any sets which RailCorp does not wish to acquire at the end of the contract; 

• Handover the maintenance facility at the end of the contract. 

In accordance with the PPP contract RailCorp is required to make certain milestone payments. These are 

treated as interest free advances pending satisfactory completion of the construction of carriages together 

with the simulators and maintenance facility. 

Refer Note 18.4. 

(iii) Accounting treatment – operating leases 

Lease rentals under an operating lease are recognised as income (or expense) on a straight-line basis over 

the lease term unless another systematic basis is more representative of the time pattern of the user’s 

benefit. 

Initial direct costs incurred, as lessor, in negotiating and arranging an operating lease are added to the 

carrying amount of the leased asset and recognised as an expense over the lease term on the same basis 

as the lease income. 

An asset leased to a lessee is presented in the Statement of Financial Position according to the nature of 

the asset and is subject to the depreciation policy for similar but non-leased assets. 

Refer Note 2.16 

58 




2.5 Leases (continued) 

(iv) Accounting treatment – finance leases 

As lessee 

Finance leases, which transfer to RailCorp substantially all the risks and benefits incidental to ownership of 

the leased item, are capitalised at the commencement of the lease term at the fair value of the leased asset 

or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is 

included in the Statement of Financial Position as a finance lease liability. Lease payments are apportioned 

between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest 

on the remaining balance of the liability. Finance charges are capitalised in accordance with the accounting 

policy on borrowing costs. 


Finance leased assets are depreciated on a straight-line basis over the shorter of the estimated useful life 

of the asset and the lease term if there is no reasonable certainty that RailCorp will obtain ownership by the 

end of the lease term. Where there is reasonable certainty that RailCorp will obtain ownership of the asset 

after the lease term the asset is depreciated over its estimated useful life. 


As lessor 

RailCorp, as the lessor, classifies its long-term land leases (typically where the initial lease term exceeds 

50 years), as finance leases if it transfers to the lessee substantially all the risks and rewards incidental to 

ownership of the land. The leased assets are recognised as current and non-current receivables at 

amounts equal to the net investment in the leases. 

The lease receipt is recognised in two components, one as a reduction of the lease receivables and the 

other as finance income. The finance income is calculated relevant to the term of the lease. 

Refer Note 6. 

(v) Arrangements in the form but not the substance of a lease 

An arrangement comprising a series of transactions involving the legal form, but not the economic 

substance, of a lease is accounted for as one linked transaction rather than as a lease. Any fee resulting 

from the arrangement is recognised as income in the year it is received. 

Refer Notes 2.7 and 9.4. 

(vi) Accounting treatment for prepaid rentals 

Prepaid rentals where the initial lease term exceeds 50 years are treated as sales in accordance with NSW 

Treasury policy, TPP 11-01, Lessor Accounting for Prepaid Long-term Leases of Land. 


2.6 Foreign currency translation 

A foreign currency transaction is recognised and initially translated into Australian currency using the 

market rate at the date of the transaction. Outstanding transactions at any subsequent reporting date is 

translated at the market rate at that date. 

Exchange differences on monetary items that qualify as hedging instruments in a cash flow hedge are 

recognised initially in equity to the extent that the hedge is effective. Exchange differences on other 

monetary items are recognised as income or expense. 

2.7 Income 

Income is measured at the fair value of the consideration or contributions received or receivable. In most 

cases this is the value of the cash exchanged or exchangeable. Income is only recognised if its receipt is 

probable and the amount is reliably measurable. The accounting policies for the recognition of income are 

discussed below: 

Passenger revenue 

Proceeds received from the sale of tickets are reported as passenger services revenue. Passenger service 

revenue is initially recognised based on ticket sales. Revenue received prior to passenger travel, and the 

pro-rata unearned portion of periodic tickets, is assessed annually and treated as deferred revenue. 


59


Fines and penalties 

Fines and penalties are collected by the State Debt Recovery Office on behalf of RailCorp and are 

recognised by way of an estimate of the amount expected to be collected. 

Rendering of services 

Revenue from the rendering of a service is recognised by reference to the stage of completion of the 

transaction, provided that the transaction’s outcome, stage of completion, and the past and prospective 

costs are all reliably measurable. Otherwise such revenue is only recognised to the extent of the 

associated recognised recoverable expenses. 

The stage of completion of a construction contract is determined by comparing the cost incurred to date 

with the estimated total cost of the contract. 

Government contributions 

Contributions are received from the NSW Government towards the cost of providing certain agreed 

services and concessions. The passenger revenue covers only a part of operating expenses and the 

shortfall is met by those contributions by the NSW Government for subsidies and concessions (refer 

Statement of Comprehensive Income). 

Contributions are recognised when control of the cash or other asset (or the right to receive it) is obtained. 

The presentation of the Statement of Comprehensive Income includes subtotals for the result from 

operations before Government Contributions and the result from operations before Capital Contributions. 

That presentation has been adopted as it is a more informative representation of the operating result with 

reference to RailCorp’s sources of funding. 

Interest revenue 

Interest revenue is recognised as interest accrues using the effective interest method, which uses a rate 

that exactly discounts a financial instrument’s expected future cash receipts through the expected life of the 

financial instrument (or shorter period) to the net carrying amount of the instrument. Interest revenue 

includes all earnings from NSW Treasury Corporation (TCorp) Hourglass cash facility and 11am Call 

Deposit. 

Leases 

Operating lease income is recognised on a straight-line basis over the lease term. 

Fees received under an arrangement that is in the legal form of a lease but that is not, in substance, a 

lease under AASB 117, are recognised as revenue over the term of the lease. 

Sale of assets and goods 

Revenue from the sale of assets or other goods is recognised when control and the significant risks and 

rewards of ownership have passed to the buyer and the past and prospective transaction costs are reliably 

measurable. 

2.8 Borrowing costs 

Borrowing costs are capitalised in respect of constructed property, plant and equipment that meet the 

criteria of qualifying assets. Other borrowing costs are recognised as an expense in the period in which 

they are incurred. 

2.9 Cash and cash equivalents 

Cash and cash equivalents in the statement of financial position includes cash at bank and on hand, at call 

deposits, and short-term, highly liquid investments that are readily convertible into known amounts of cash 

and which are subject to an insignificant risk of changes in value. 

For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash 

equivalents as defined above, net of outstanding bank overdrafts. 

60 

Refer Note 5. 


RailCorp Annual Report 2011–12 

2.10 Trade and other receivables 

Trade receivables are measured initially at fair value and subsequently at invoiced cost less a provision for 

impairment, which is not materially different from amortised cost due to their short-term nature. A trade



2.10 Trade and other receivables 

Trade receivables are measured initially at fair value and subsequently at invoiced cost less a provision for 

impairment, which is not materially different from amortised cost due to their short-term nature. A trade 

receivable is usually due for settlement within 30 days of invoicing. Collectability of trade receivables is 

reviewed on an ongoing basis. 

A receivable is recognised when it is probable that the future cash inflows associated with it will be realised 

and it has a value that can be measured reliably. It is derecognised when the contractual rights to future 

cash inflows from it expire or are transferred. 

An expected reimbursement of expenditure required to settle a provision is only recognised as a receivable 

when it is virtually certain that the reimbursement will be received. Such reimbursement is treated 

separately from the related provision and its amount does not exceed the amount of that provision. 

If there is objective evidence at year end that a receivable may not be collectable, its carrying amount is 

reduced by means of a provision for impairment and the resulting loss is recognised in the income 

statement. Receivables are monitored during the year and bad debts are written off against the provision 

when those are determined to be irrecoverable. Significant financial difficulties of the debtor, probability that 

the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are 

considered indicators that trade receivables are impaired. 

Refer Note 6. 

2.11 Inventories 

Inventories comprise materials and supplies to be consumed in operations and construction works in 

progress for customers. Inventories held for distribution are measured at cost adjusted for any loss of 

service potential. Inventories held for sale are measured at the lower of cost and net realisable value. 

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in 

bringing them to their present location and condition. This includes material, labour and attributable fixed 

and variable overhead costs. 


The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and 

segregated for specific projects is assigned by using specific identification of their individual costs. The cost 

of remaining inventories is assigned by using the weighted average cost formula. Cost formulae are applied 

consistently to all inventories having a similar nature and use to the entity. 

The carrying amount of inventories sold is recognised as an expense when the related revenue is 

recognised. The amount of any write-down of inventories to net realisable value and any loss relating to 

inventories is recognised as an expense in the year in which the write-down or loss occurs. The amount of 

any reversal of any write-down of inventories, arising from an increase in net realisable value, is recognised 

as a reduction of the expense relating to inventories in the year in which the reversal occurs. 

Refer Note 7. 

2.12 Non-current assets held for sale 

Non-current assets are classified as held for sale, where their carrying amount will be recovered principally 

through a sale transaction, not through continuing use. This condition is regarded as met when the sale is 

highly probable; the asset is available for immediate sale in its present condition and is expected to be 

completed within 1 year from the date of classification. 

Non-current assets held for sale are recognised at the lower of carrying amount and fair value less cost to 

sell. Such assets are presented separately from other assets in the Statement of Financial Position and are 

not depreciated or amortised while they are classified as held for sale. 

Refer Note 8. 


61



2.13 Impairment of financial assets 

All financial assets are subject to an annual review for impairment. An allowance for impairment is 

established when there is objective evidence that RailCorp will not be able to collect all amounts due. The 

calculated impairment loss is recognised in the income statement as an allowance to reduce the carrying 

amount of the financial asset. 

When there is objective evidence that impairment no longer exists previously recognised impairment losses 

are reversed through the income statement so that the carried amount at amortised value does not exceed 

what the carrying amount would have been had there not been an impairment loss. 

2.14 Property, plant and equipment 

(i) Recognition 

An item of property, plant and equipment is recognised as an asset if it has service potential controlled by 

RailCorp, is expected at acquisition to be used for more than 1 year, has a cost or value that can be 

measured reliably and exceeds the capitalisation threshold. 

A component is accounted for separately if it (a) has a useful life materially different from that of the prime 

asset and therefore requires separate replacement during the life of the prime asset, (b) is material enough 

to justify separate tracking, and (c) is capable of having a reliable value attributed to it. A dedicated spare 

part does not normally have a useful life of its own. 

Dedicated spares purchased specifically for a particular asset, or class of assets, and which would become 

redundant if that asset or class were retired or use of that asset or class were discontinued, are considered 

to form part of the historical cost of that asset or class. 

Expenditure on the acquisition, replacement or enhancement of property, plant and equipment is 

capitalised, provided it exceeds the capitalisation threshold or qualifies for recognition as a capital spare. 

The capitalisation threshold for a network of property, plant and equipment items or for an individual (nonnetworked) 

item (other than a capital spare) is $5,000. A capital spare is only capitalised if it is part of a 

pool of rotable spares, primarily held for the overhaul of the asset to which it relates, and significant enough 

to warrant it being individually tracked. Expenditure below the capitalisation threshold or not qualifying for 

recognition as a capital spare is charged to the income statement. 

An item of property, plant and equipment in the course of construction is classified as capital work in 

progress. 

An item leased to a lessee under an operating lease continues to be recognised as property, plant and 

equipment and to be classified according to the nature of the asset. 

(ii) 

Measurement 

An item of property, plant and equipment purchased or constructed is initially measured at its cost, which is 

its fair value on acquisition. This includes the purchase price and any costs directly attributable to bringing it 

to the location and condition necessary for it to be capable of operating as intended. An item of property, 

plant and equipment acquired at no cost, or for a nominal cost, is initially measured at its fair value. 

Property, plant and equipment is revalued, at least once every 5 years, to fair value having regard to its 

highest and best use. As existing natural, legal, financial or socio-political restrictions on asset use or 

disposal generally prevent any alternative use being feasible within the next 5 years, highest and best use 

is taken to be existing use. Fair value is an asset’s market price or, if such a price is not observable or 

estimable from market evidence, its replacement cost, being the written-down cost of an optimised modern 

equivalent asset. Non-specialised assets with short useful lives are measured at depreciated historical cost 

as a proxy for fair value. 

If an item of property, plant and equipment is revalued, the entire class to which it belongs is revalued. 

62 




2.14 Property, plant and equipment (continued) 

(ii) Measurement (continued) 

Bored and excavated tunnels, excavations for stations and site formations including cuttings and 

embankments entering service prior to 2000 are carried at nil value as their value can not be reliably 

measured, due predominantly to the lack of historical records relating to the earthworks carried out and the 

costs involved. 

Any accumulated depreciation at the date of a revaluation is restated proportionately with the change in the 

gross carrying amount of the related asset so that the carrying amount of the asset after revaluation equals 

its revalued amount. 

Upon revaluation of a class of property, plant and equipment, a net revaluation increase is recognised in 

Other Comprehensive Income and accumulated in equity under Asset Revaluation Reserve. A net 

revaluation decrease shall be recognised in Other Comprehensive Income to the extent of any credit 

balance existing in revaluation surplus in respect of that same class of asset. The net revaluation decrease 

recognised in Other Comprehensive Income reduces the amount accumulated in equity under the heading 

of Asset Revaluation Reserve. 

(iii) 

Depreciation 

Each item of property, plant and equipment (except land) is depreciated on a straight-line basis over its 

estimated useful life commencing when the item is available for use. A capital spare is depreciated over the 

useful life of the asset or class of assets to which it relates. 

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total 

cost of the item is depreciated separately, except for rolling stock which is depreciated as a discrete asset. 

The depreciation charge for each period is recognised as an expense unless it is included in the carrying 

amount of another asset. 

In determining an asset’s useful life consideration is given to its expected usage, its expected wear and 

tear, technical or commercial obsolescence; and legal or similar limits on its use. 


The expected useful lives of items of property, plant and equipment are as follows: 

Years 

Stations and buildings 15 - 200 

Station services and facilities 15 - 25 

Track, including sleepers and ballast 15 - 100 

Turnouts 15 - 50 

Bridges and tunnels 100 

Electrical overhead wiring and structures 15 - 100 

Substations 10 - 50 

Signalling equipment 20 - 50 

Rolling `stock 32 - 35 

Plant and machinery 3 - 30 

Each asset’s useful life, residual value and depreciation method are reviewed each year and any resulting 

adjustments are accounted for as a change in accounting estimate. 

(iv) 

Derecognition 

An item of property, plant and equipment is derecognised either on disposal or when its service potential 

ceases and it is not expected to have any disposal value. 

On derecognition of an item of property, plant and equipment, any gain or loss or any related compensation 

receivable is recognised in the income statement. Any revaluation increase remaining in the Asset 

Revaluation Reserve in respect of a derecognised asset is transferred to retained earnings. 

Refer Note 9. 


63



2.15 Intangible assets 

(i) Recognition 

An identifiable, non-monetary asset without physical substance (such as computer software that is not 

integral to the related hardware) is recognised as an intangible asset if it has service potential controlled by 

RailCorp, is expected at acquisition to be used for more than 1 year, and has a cost or value that (a) can be 

measured reliably, (b) exceeds the capitalisation threshold of $5,000 and (c) has not previously been 

expensed. 

The service potential is assessed using reasonable and supportable assumptions relating to the estimated 

conditions likely to exist over the useful life of the asset. 

An intangible asset arising from development (or from the development phase of an internal project) is only 

recognised if it is likely to be completed and actually used and the development expenditure can be 

measured reliably. Expenditure on research (or on the research phase of an internal project) is not 

recognised as an intangible asset. 

An intangible asset in the course of development is classified as intangible capital work in progress. 

(ii) 

Measurement 

An intangible asset that is purchased or internally developed is initially measured at its cost. This includes 

the purchase price and any costs directly attributable to preparing the asset for its intended use. An 

intangible asset acquired at no cost, or for a nominal cost, because it is transferred by the government is 

initially measured at its fair value, which is based on its amortised cost as recognised by the transferor. 

After initial recognition, such assets are accounted for under the cost model. 

Due to the absence of active markets for intangible assets, they are not subsequently revalued but 

continue to be carried at cost less any accumulated amortisation. 

(iii) 

Amortisation 

Each intangible asset is amortised on a straight-line basis over its estimated useful life commencing when 

the item is available for use. Useful lives are all finite. Residual values are assumed to be zero, due to the 

absence of active markets for disposing of the assets. 

In determining an asset’s useful life, consideration is given to its expected usage; technical, technological, 

commercial or other types of obsolescence; legal or similar limits on its use; and whether its life is 

dependent on the useful life of other assets. 

The expected useful life of an item of software ranges between 2 and 4 years. 

Each intangible asset’s useful life and amortisation method are reviewed each year and any resulting 

adjustments are accounted for as a change in accounting estimate. 

The amortisation charge for each year is recognised in the income statement as depreciation and 

amortisation expense unless it is included in the carrying amount of another asset. 

(iv) Derecognition 

An intangible asset is derecognised either on disposal or when its service potential ceases and it is not 

expected to have any disposal value. On derecognition, any gain or loss is recognised in the income 

statement. 


2.16 Service concession arrangements 

Airport Link Company (ALC) has a concession to build and operate 4 stations on the Airport Line until 

2030. Under the concession arrangement, RailCorp is to provide train services to the stations. RailCorp will 

take over the 4 stations in 2030. 

64 




2.16 Service concession arrangements (continued) 

This right to receive the 4 stations is accounted for as a premium on the ground lease of the station 

premises, which is a non-cancellable operating lease. The premium is recognised as rent revenue and a 

non-current asset (earned portion of right to receive Airport Line stations). It is measured as the estimated 

written-down replacement cost of the stations in 2030 and the value of the emerging asset is calculated by 

use of an annuity formula whereby the ultimate value of the right to receive the property is treated as the 

compound value of an annuity that accumulates as a series of equal annual receipts together with a 

notional compound interest thereon. The discount rate used is the NSW Government bond rate applicable 

to the purchaser at the commencement of the concession period - in this case 7%. The present value of 

the written-down replacement cost of the stations in 2030 is allocated over the term of the lease on the 

basis of a formula which calculates the annual annuity sum. 

Refer Note 11, Other Assets, for the cumulative value as at 30 June 2012. 

In October 2005 RailCorp and the ALC entered into a Restated Stations Agreement as part of the overall 

restructuring of the ALC operations and related debt. The revised agreement included amended terms in 

respect of various matters including revenue sharing, fee arrangements and RailCorp's various 

performance obligations. 


2.17 Trade and other payables 

A payable is recognised on the Statement of Financial Position when a present obligation arises under a 

contract. It is derecognised when the obligation expires or is discharged, cancelled or substituted. 

A payable is measured at original invoice amount, which is not materially different from amortised cost due 

to the short-term nature of trade payables. 

Any gain or loss arising when a payable is settled or transferred is recognised in the income statement. 

Trade payables are unsecured and, unless otherwise agreed with the creditor, are due for settlement by 

the end of the month following the month in which the invoice is received. 

Refer Note 12. 


2.18 Borrowings 

A borrowing is recognised when a present obligation arises under a debt instrument. It is classified as a 

current liability if settlement is due within twelve months after the reporting date. Otherwise it is classified as 

non-current. It is derecognised when the obligation expires or is discharged, cancelled or substituted. 

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset are 

capitalised as part of the cost of that asset. All other borrowing costs are expensed in the period in which 

they occur. 

A borrowing is initially measured at its fair value and subsequently measured at amortised cost, being its 

face value less unamortised discount or plus unamortised premium. 

Discount or premium is amortised over the term of the borrowing on an effective interest rate basis and 

recognised as a loss or gain in the income statement. Any difference between the carrying amount and the 

consideration paid on repayment or transfer of a borrowing is also recognised as a gain or loss. 


2.19 Provisions 

(i) 

Provisions generally 

Provisions are made for liabilities of uncertain amount or uncertain timing of settlement, eg employee 

benefits, workers’ compensation claims, public liability claims, legal claims, Airport Line asset replacement, 

quarry site restoration, land and buildings remediation, ballast disposal, restoration of leased premises and 

other charges. 


65

66 





2.19 Provisions (continued) 

2.19 (i) Provisions generally (continued) 

(continued) 

(i) 

Provisions generally (continued) 

A provision is recognised when (a) there is a likely present legal or constructive obligation as a result of a 

past A provision event; (b) is recognised it probable when that (a) an there outflow is a of likely resources present embodying legal or constructive economic benefits obligation will as be a required result of to a 

past settle event; the obligation; (b) it is probable and (c) a that reliable an outflow estimate of can resources be made embodying of the amount economic of the benefits obligation. will be required to 

obligation; settle the obligation; and (c) a reliable and (c) estimate a reliable can estimate be made can of be the made amount of the of the amount obligation. of the obligation. 

The amount recognised is the best estimate of the expenditure required to settle the likely present 

obligation The amount as at recognised reporting date, is the taking best into estimate account of the risks expenditure and uncertainties required that to settle surround the the likely events present and 

circumstances obligation as at that reporting affect date, the provision. taking into Where account the effect the risks of the and time uncertainties value of money that surround is material, the events a provision and 

is circumstances measured using that affect the present the provision. value of Where the expenditures the effect of expected the time value to be of required money to is material, settle the a obligation provision 

is and measured using a discount using the rate present that reflects value current of the expenditures market assessments expected of to the be time required value to of money settle the and obligation the risks 

reflects specific and using current to a the discount liability. market rate assessments that reflects of current the time market value of assessments money and the of the risks time specific value to of the money liability. and the risks 

specific to the liability. 

Each provision is reviewed as at each reporting date and adjusted to reflect the current best estimate. If it is 

no Each longer provision probable is reviewed that a settlement as at each will reporting be required, date and the adjusted provision to is reflect reversed. the current A provision best is estimate. only used If it for is 

intended no its longer purpose. probable that a settlement will be required, the provision is reversed. A provision is only used for 

its intended purpose. 

(ii) 

Employee benefits 

(ii) Employee benefits 

Employee benefit provisions represent the expected amounts payable in the future in respect of unused 

entitlements Employee benefit accumulated provisions as at represent the reporting the date. expected amounts payable in the future in respect of unused 

entitlements accumulated as at the reporting date. 

Superannuation, long service leave, annual leave, and award leave liabilities are recognised as provisions 

when Superannuation, the obligations long arise, service which leave, is annual usually leave, through and the award rendering leave of liabilities service are by recognised employees. as Expenditure provisions 

creating when the such obligations provisions arise, either which expensed is usually or through capitalised, the rendering depending of on service its nature. by employees. Severance liabilities Expenditure are 

recognised creating such as provisions a is (and either an expensed expense) or when capitalised, a voluntary depending redundancy on its nature. agreement Severance is reached liabilities or when are 

commitment recognised there a demonstrable as to a the provision termination commitment (and of an employees’ expense) to the termination services when a and voluntary of a employees’ valid redundancy expectation services agreement has and been a valid created. is reached expectation or when has 

been there created. is a demonstrable commitment to the termination of employees’ services and a valid expectation has 

been created. 

Provisions are not recognised for employee benefits that have already been settled (e.g. payments to First 

State Provisions Super, are a not fully recognised funded superannuation for employee scheme); benefits that have do not already accumulate been (eg settled allowances, (e.g. payments non-monetary to First 

benefits, State Super, parental a fully leave), funded that superannuation are unlikely scheme); to be settled that do beyond not accumulate the current (eg year’s allowances, entitlement non-monetary (e.g. sick 

benefits leave), benefits, or (such 

parental that as have payroll 

leave), little tax) or that no are marginal are 

recognised 

unlikely cost separately. 

to (e.g. be post-employment settled beyond the travel current passes). year’s entitlement (e.g. sick 

leave), or that have little or no marginal cost (e.g. post-employment travel passes). 

Costs associated with, but that are not, employee benefits (such as payroll tax) are recognised separately. 

Costs associated with, but that are not, employee benefits (such as payroll tax) are recognised separately. 

Superannuation and long service leave provisions are actuarially assessed prior to each reporting date and 

the 

are 

undiscounted 

measured at the 

amount 

present 

of the 

value 

estimated 

of the 

future 

estimated 

payments. 

Superannuation and long service leave provisions are future actuarially payments. assessed All other prior employee to each reporting benefit provisions date and 

are (i.e. measured for benefits at falling the present due within value twelve of the estimated months after future reporting payments. date) All are other assessed employee by management benefit provisions and 

are (i.e. measured for benefits at falling the undiscounted due within amount twelve months of the estimated after reporting future date) payments. are assessed by management and 

are measured at the undiscounted amount of the estimated future payments. 

The amount recognised for the superannuation provision is the net total of the present value of the defined 

benefit The amount obligation recognised at the reporting for the superannuation date, minus the provision fair value is the at that net date total of any the plan present assets value out of of the which defined the 

obligations benefit obligation are to at be the settled reporting directly. date, minus However, the fair any value prepaid at that superannuation date of any plan asset assets recognised out of which cannot the 

exceed obligations the total are to of any be settled cumulative directly. unrecognised However, net any actuarial prepaid losses superannuation and past service asset cost recognised and the present cannot 

value exceed of the any total economic of any cumulative benefits that unrecognised may be available net actuarial in the form losses of refunds and past from service the plan cost and or reductions the present in 

future contributions to the plan. 

outside 

value of 

of 

any 

profit 

economic 

or loss in 

benefits 

other comprehensive 

that may be available 

income. 

in the form of refunds from the plan or reductions in 

future contributions to the plan. 

The amount recognised in the income statement for superannuation is the net total of current service cost, 

The interest amount cost, recognised and the expected in the income return on statement any plan for assets. superannuation Actuarial gains is the or net losses total of for current superannuation service cost, are 

recognised interest cost, outside and the of expected profit or loss return in other on any comprehensive plan assets. Actuarial income. gains or losses for superannuation are 

recognised outside of profit or loss in other comprehensive income. 

expectations The actuarial for assessment the period over of superannuation which the obligations and long are to service be settled. leave provisions uses the Projected Unit 

Credit The actuarial Method assessment and reflects of estimated superannuation future salary and long increases service and leave the benefits provisions set uses out in the the Projected terms of Unit the 

plan. Credit The Method liabilities and are reflects discounted estimated using future the salary market increases yield rate and on government the benefits bonds set out of in similar the terms maturity of the to 

is those plan. no legally The obligations. liabilities enforceable Actuarial are discounted right assumptions to do so. using are the unbiased market Refer yield Note and rate 14. mutually on government compatible bonds and financial of similar assumptions maturity to 

are those based obligations. on market Actuarial expectations assumptions for the are period unbiased over which and the mutually obligations compatible are to and be settled. financial assumptions 

are based on market expectations for the period over which the obligations are to be settled. 

An asset relating to one superannuation plan is not offset against a liability relating to another plan because 

there An asset is no relating legally to enforceable one superannuation right to do plan so. is not offset against a liability relating to another plan because 

RailCorp Annual Report 2011–12 

there is no legally enforceable right to do so. 



A provision is recognised when (a) there is a likely present legal or constructive obligation as a result of a past 

event; (b) it is probable that an outflow of resources embodying economic benefits will be required to settle the 

The amount recognised is the best estimate of the expenditure required to settle the likely present obligation as at 

reporting date, taking into account the risks and uncertainties that surround the events and circumstances that 

affect the provision. Where the effect of the time value of money is material, a provision is measured using the 

present value of the expenditures expected to be required to settle the obligation and using a discount rate that 

Each provision is reviewed as at each reporting date and adjusted to reflect the current best estimate. If it is no 

longer probable that a settlement will be required, the provision is reversed. A provision is only used for its 

Employee benefit provisions represent the expected amounts payable in the future in respect of unused 

Superannuation, long service leave, annual leave, and award leave liabilities are recognised as provisions when 

the obligations arise, which is usually through the rendering of service by employees. Expenditure creating such 

provisions is either expensed or capitalised, depending on its nature. Severance liabilities are recognised as a 

provision (and an expense) when a voluntary redundancy agreement is reached or when there is a demonstrable 

Provisions are not recognised for employee benefits that have already been settled (e.g. payments to First State 

Super, a fully funded superannuation scheme); that do not accumulate (eg allowances, non-monetary benefits, 

parental leave), that are unlikely to be settled beyond the current year’s entitlement (e.g. sick leave), or that have 

little or no marginal cost (e.g. post-employment travel passes). Costs associated with, but that are not, employee 

Superannuation and long service leave provisions are actuarially assessed prior to each reporting date and are 

measured at the present value of the estimated future payments. All other employee benefit provisions (i.e. for 

benefits falling due within twelve months after reporting date) are assessed by management and are measured at 

The amount recognised for the superannuation provision is the net total of the present value of the defined benefit 

obligation at the reporting date, minus the fair value at that date of any plan assets out of which the obligations are 

to be settled directly. However, any prepaid superannuation asset recognised cannot exceed the total of any 

cumulative unrecognised net actuarial losses and past service cost and the present value of any economic 

benefits that may be available in the form of refunds from the plan or reductions in future contributions to the plan. 

The amount recognised in the income statement for superannuation is the net total of current service cost, interest 

cost, and the expected return on any plan assets. Actuarial gains or losses for superannuation are recognised 

The actuarial assessment of superannuation and long service leave provisions uses the Projected Unit Credit 

Method and reflects estimated future salary increases and the benefits set out in the terms of the plan. The 

liabilities are discounted using the market yield rate on government bonds of similar maturity to those obligations. 

Actuarial assumptions are unbiased and mutually compatible and financial assumptions are based on market 

An asset relating to one superannuation plan is not offset against a liability relating to another plan because there



2.20 Equity adjustments due to industry restructuring/transfer of assets and 

liabilities 

A transfer of assets (or liabilities) from (or to) another NSW public sector entity as a result of a Ministerial 

Order to give effect to industry restructuring or transfer of assets or liabilities from certain other government 

entities is treated as a contribution by (or distribution to) the Government and recognised as a direct 

adjustment to contributed equity. 


2.21 Significant accounting judgements, estimates and assumptions 

Management is required to make judgements, estimates and assumptions about carrying values of assets 

and liabilities that are not readily apparent from other sources. The estimates and associated assumptions 

are based on historical experience and various factors that are believed to be reasonable under the 

circumstances, the results of which form the basis of making the judgements. Actual results may differ 

from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. 

Revisions to accounting estimates are recognised in the period in which the estimates are revised if the 

revision affects only that period, or in the period of the revision and future periods if the revision affects both 

current and future period. 

In particular refer Note 9.3 - Valuation of property plant & equipment and Note 14 - Provisions. 

Note 3 Income 

3.1 Non passenger revenue 

Consolidated 

Parent 


$000 $000 $000 $000 

Rental income 33 513 31 421 33 513 31 421 

Access fees 56 082 54 718 56 082 54 718 

Construction contract revenue 90 599 94 841 90 599 94 841 

Sale of rail products 45 401 26 676 45 401 26 676 

Fines and penalties 8 528 7 331 8 528 7 331 

Sale of quarry products 13 263 12 293 13 263 12 293 

Recoveries for interstate 

services 12 182 10 884 12 182 10 884 

Operating lease contingent 

rents 2 288 2 421 2 288 2 421 

Advertising revenue 10 247 9 388 10 247 9 388 

Other revenue* 74 219 59 989 73 600 59 877 

Total non passenger revenue 346 322 309 962 345 703 309 850 


*Note: Other revenue comprises a number of items which individually are not material. 

3.2 Capital Contributions 

Consolidated 

Parent 


$000 $000 $000 $000 

NSW Government capital grant 1 317 063 872 801 1 317 063 872 801 

Other Government agencies - cash 23 172 - 23 172 - 

Other Government agencies - non 

cash 12 950 - 12 950 - 

Commonwealth agencies - non cash 37 909 - 37 909 - 

third parties 5 490 - 5 490 - 

Total Capital Contributions 1 396 584 872 801 1 396 584 872 801 


67


Note 4 Expenses 

4.1 Payroll costs and other employee benefits 

Employee related expenses include the following items: 

Consolidated 

Parent 


Note $000 $000 $000 $000 

Salaries and wages 1 276 138 1 206 045 1 275 640 1 205 914 

Annual leave 121 923 111 765 121 902 111 753 

Long service leave 95 302 37 798 95 302 37 798 

Superannuation – defined benefit 

plan 4.2 (2 930) (2 874) (2 930) (2 874) 

Superannuation – defined 

contribution 76 477 72 862 76 436 72 853 

Workers compensation 20 111 28 911 20 103 28 909 

Payroll tax and fringe benefits tax 78 091 74 121 78 089 74 121 

Redundancy 84 562 3 272 84 562 3 272 

Other 33 115 37 768 33 110 37 763 

1 782 789 1 569 668 1 782 214 1 569 509 

Less : Employee related expenses 

allocated to capital works 166 422 143 897 166 422 143 897 

1 616 367 1 425 771 1 615 792 1 425 612 

4.2 Defined benefit superannuation plan expense 

Consolidated 

Parent 


$000 $000 $000 $000 

Current service cost 25 630 27 003 25 630 27,003 

Interest cost 84 645 80 271 84 645 80,271 

Expected return on plan asset (113 205) (110 148) (113 205) (110 148) 

Total defined benefit 

superannuation expense/(income) 

14.2.5 (2 930) (2 874) (2 930) (2 874) 

68 



Note 4 Expenses (continued) 

4.3 Other operating expenses 

Consolidated 

Parent 


$000 $000 $000 $000 

Subcontractors 258 487 243 137 258 464 243 137 

Materials 178 134 164 793 178 134 164 793 

External maintenance costs 181 290 203 973 181 290 203 973 

Operating lease non-contingent rents 

108 913 102 589 108 913 102 589 

(including rail access fees) 

Operating lease contingent rents 13 673 13 089 13 673 13 089 

Plant and equipment hire 85 921 90 583 85 921 90 583 

Bulk electricity 80 574 71 566 80 518 71 566 

Security costs 24 982 27 416 24 967 27 416 

Traction fuel costs 22 711 22 259 22 711 22 259 

Derecognition and write off of assets 139 980 119 702 139 980 119 702 

Insurance costs 18 443 17 428 18 419 17 428 

Telecommunications expenses 17 205 12 170 17 187 12 170 

Computer expenses 67 611 60 513 67 605 60 513 

Shared services costs from Transport for 

NSW 51 157 31 500 51 157 31 500 

Recovery of cost of staff assigned to 

Transport for NSW (60 819) (33 749) (60 819) (33 749) 

Advertising and marketing 3 625 4 713 3 421 4 713 

Printing and stationery 9 216 10 368 9 210 10 368 

Land and buildings remediation 6 607 5 529 6 607 5 529 

Consultants (See note (a) below) 7 371 1 157 7 371 1 157 

Discounting of provisions 6 541 5 774 6 541 5 774 

Audit fees 784 752 767 738 

Bad debts 76 76 76 76 

Impaired trade receivables 56 (1 590) 56 (1 590) 

Contribution to Trainworks - - 828 369 

Other 80 348 70 389 79 843 70 109 

Total other operating expenses 1 302 886 1 244 137 1 302 840 1 244 212 


Note (a): A further amount of $0.008m for consultants was capitalised in 2011-12 (2010-11: $0.923m). 

4.4 Maintenance expenses 

Included in total operating expenses are maintenance related costs as follows: 

Consolidated 

Parent 


$000 $000 $000 $000 

Labour 323 710 302 840 323 710 302 840 

Contracted and non labour expenditure 587 245 605 438 587 245 605 438 

910 955 908 278 910 955 908 278 

In addition to the above a further $200.3m of major periodic maintenance was capitalised during the year 

ended 30 June 2012 (2010-11: $202.7 m). 

4.5 Finance Costs 

Borrowing and interest charges 53 864 28 419 53 864 28 419 

Less amount capitalised (20 921) (10 616) (20 921) (10 616) 

Finance costs expensed 32 943 17 803 32 943 17 803 

The capitalised rate used to determine the amount of borrowing costs to be capitalised is the weighted 

average interest rate applicable to the outstanding borrowings. The rate is 4.91%. 

Note 5 Cash and cash equivalents 


69


Note 5 Cash and cash equivalents 

5.1 Cash and cash equivalents 

Consolidated 

Parent 

30.6.2012 30.6.2011 30.6.2012 30.6.2011 

$000 $000 $000 $000 

Cash at bank 8 308 3 677 8 170 3 572 

Cash in hand and in transit 6 517 6 698 6 513 6 694 

Cash deposits with NSW Treasury 

Corporation (TCorp) 62 784 4 659 62 784 4 659 

Total cash and cash equivalents 77 609 15 034 77 467 14 925 

5.2 Reconciliation of surplus for the year with net cash from operating activities 

Surplus for the year 419 034 22 487 419 032 22 457 

Cash capital grants (1 345 725) (875 960) (1 345 725) (875 960) 

Non cash capital grants (50 859) - (50 859) - 

Derecognition and write off of assets 139 980 119 702 139 980 119 702 

Airport Line lease premium (4 733) (4 423) (4 733) (4 423) 

Depreciation and amortisation 873 216 814 825 873 208 814 824 

Impaired trade receivables expense 132 (1 514) 132 (1 514) 

Amortisation of borrowing premium (309) (103) (309) (103) 

Amortisation of borrowing discount 59 35 59 35 

Discounting of provisions 6 541 5 774 6 541 5 774 

Net movements in assets and liabilities 

applicable to operating activities: 

(Increase)/decrease in trade and other 

receivables (8 680) (64 104) (8 638) (64 104) 

(Increase)/decrease in inventories (4 275) 3 047 (4 282) 3 047 

Increase/(decrease) in trade and other 

payables and provisions 181 558 37 171 181 488 37 075 

Net cash from operating activities 205 939 56 937 205 894 56 810 

5.3 Credit standby arrangements and loan facilities (Parent and Consolidated) 

The credit standby arrangements and unused amounts available are: 

30.6.12 30.6.12 30.6.11 30.6.11 

Credit Unused Credit Unused 

Facilities 

Facilities 

$000 $000 $000 $000 

Tape negotiation authority 70 000 70 000 70 000 70 000 

Purchasing card facility 20 097 - 20 097 - 

Bank guarantee 11 - - - 

Borrowing facility 1 200 000 1 075 061 1 100 000 708 511 

Come and Go facility 80 000 80 000 80 000 14 000 

Total 1 370 108 1 225 061 1 270 097 792 511 

5.4 Non-cash investing activities 

During 2011-12 Transport for NSW transferred assets to RailCorp and RailCorp transferred assets to the 

State Property Authority and the former Transport Construction Authority. The net transfer represents a 

non-cash increase in property, plant and equipment and equity of $825.4m (2010-11: $115.5m). 


70 



Note 6 Trade and other receivables 

6.1 Analysis of trade and other receivables 

Consolidated 

Parent 


$000 $000 $000 $000 

Current trade and other receivables 

Trade receivables 52 759 57 766 52 718 57 748 

Other receivables 117 973 117 021 117 979 117 050 

Less provision for impairment (2 000) (1 938) (2 000) (1 938) 

168 732 172 849 168 697 172 860 

Prepayments 20 516 13 642 20 499 13 628 

Finance lease – minimum payments 232 604 232 604 

Total current trade and other receivables 189 480 187 095 189 428 187 092 

Non-current receivables 

Finance lease – Minimum payments 30 805 28 599 30 805 28 599 

Other 3 964 - 3 964 - 

Total non-current receivables 34 769 28 599 34 769 28 599 

Total trade and other receivables 224 249 215 694 224 197 215 691 

Movements in the provision for impairment were as follows: 

Parent and 

Consolidated 

Parent and 

Consolidated 

30.6.2012 30.6.2011 

$000 $000 

Balance at beginning of year 1 938 3 688 

Allowance recognised in income statement 56 (1 590) 

GST movement 6 (160) 

Balance as at 30 June 2 000 1 938 

6.2 Impaired trade and other receivables 

As at 30 June 2012 current trade and other receivables with a nominal value of $2.0m (2010-11: $1.9m) 

were impaired. The ageing of the impaired trade and other receivables is as follows: 


Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

1 to 3 months 192 169 

3 to 6 months 193 184 

Over 6 months 1 615 1585 


6.3 Past due but not impaired receivables 

As at 30 June 2012, trade receivables of $24.9m (2011: $29.5m) were past due but not impaired. The 

ageing analysis of these trade receivables is as follows: 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

1 to 3 months 15 695 14 213 

3 to 6 months 4 442 10 255 

Over 6 months 4 829 5 008 



71


Note 6 Trade and other receivables (continued) 

6.4 Nature and extent of risk arising from receivables 

Exposure to credit risk in relation to trade and other receivables is provided in Note 20. 

Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their 

fair value. The maximum exposure to credit risk at the reporting date is the carrying amount of each class 

of receivables mentioned above. 

6.5 Minimum lease rentals receivable under non-cancellable operating leases 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

Not later than 1 year 19 408 19 901 

Later than 1 year and not later than 5 years 31 780 30 184 

Later than 5 years 22 748 41 653 

Total non-cancellable lease rentals receivable 73 936 91 738 

6.6 Finance lease receivable 

The gross investment and present values of receivables relating to future minimum lease payments under 

the finance lease agreements, for long term land lease with an initial term over 50 years are distributed as 

follows: 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

Not later than 1 year 1 866 1 886 

Later than 1 year and not later than 5 years 7 386 7 545 

Later than 5 years 96 734 98 417 

Total gross receivable 105 986 107 848 

Less unearned finance charges (74 949) (78 645) 

Present value minimum lease receivable 31 037 29 203 

Split: 

Current 232 604 

Non-current 30 805 28 599 

31 037 29 203 

Note 7 Inventories 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

Materials and supplies, at cost 71 963 67 267 

Work in progress 1 088 800 

73 051 68 067 

Less provision for obsolete inventory 5 687 4 996 

Total inventories 67 364 63 071 

Total inventories are comprised of: 

Current inventories 35 017 34 193 

Non-current inventories 32 347 28 878 

67 364 63 071 

72 



Note 8 Non-current assets held for sale 

Various properties (including certain properties vested from State Rail Authority in June 2007 to fund 

sustainable heritage management) have been identified as land for future sales and are valued by an 

independent valuer at $28.0m (2011: $30.5m) of which $1.8m (2011: $7.8m) is disclosed as a current asset 

held for sale as other properties are in the process of being prepared for sale. The balance is included in 

the Statement of Financial Position as Property, Plant and Equipment. 

Note 9 Property, plant and equipment 

9.1 Classes 

Consolidated 

Parent 


$000 $000 $000 $000 

Land 

Gross carrying amount* 3 877 807 3 855 545 3 877 807 3 855 545 

Buildings 

Gross carrying amount 8 161 605 7 931 295 8 161 605 7 931 295 

Less accumulated depreciation 2 721 279 2 548 537 2 721 279 2 548 537 

Total buildings 5 440 326 5 382 758 5 440 326 5 382 758 

Rolling stock 



Total rolling stock 2 811 120 2 475 488 2 811 120 2 475 488 

Plant and machinery 

Gross carrying amount 604 096 573 249 604 075 573 240 

Less accumulated depreciation 356 801 327 806 356 795 327 806 

Total plant and machinery 247 295 245 443 247 280 245 434 


Trackwork and infrastructure 



Total trackwork and infrastructure 10 144 981 10 203 073 10 144 981 10 203 073 

Capital works in progress 

Trackwork and infrastructure work in 

progress 2 617 905 1 702 553 2 617 905 1 702 553 

Other work in progress 721 537 599 728 721 537 599 728 

Total capital work in progress 3 339 442 2 302 281 3 339 442 2 302 281 

Total property, plant and equipment 25 860 971 24 464 588 25 860 956 24 464 579 

* Land includes land for sale valued at $26.2m (2011: $22.7m). 

Included in the above asset classes are assets under finance lease of: 

Buildings - 

Rolling stock - 

with a gross carrying value of $242.4m (2011: $242.4m) and a net carrying 

amount of $232.6m (2011: $237.4m) 

with a gross carrying value of $303.5m (2011: $30.4m) and a net carrying 

amount of $ 299.1m (2011: $ 30.4m) 

Plant and machinery - with a gross carrying value of $5.9m (2011: $5.9m) and a net carrying amount 

of $5.1m (2011: $5.5m) 


73


Note 9 Property Plant and Equipment (continued) 

9.2 Asset class movement - Consolidated 

Gross carrying amount 

Land Buildings Rolling 

stock 

Plant and 

Machinery 

Trackwork 

and 

Infrastructure 

Capital works 

in progress 

$000 $000 $000 $000 $000 $000 $000 

Balance at 1 July 2011 3 855 545 7 931 295 6 799 874 573 249 18 334 614 2 302 281 39 796 858 

Additions - 194 296 508 499 44 040 479 658 362 775 1 589 268 

Disposals/derecognition/ 

write-offs (1 714) 1 036 (7 319 ) (14 566 ) (285 666 ) (58 708 ) (366 937) 

Revaluations 694 - - - - - 694 

Transfers to TCA* (825) - - - - - (825) 

Transfers to SPA* (2 583) - - - - - (2 583) 

Transfers from TfNSW * 20 643 35 948 - - - 772 262 828 853 

Transfers other - (970 ) - 1 373 - (39 168 ) (38 765) 

Classify (to)/from assets 

held for sale 6 047 - - - - - 6 047 

Balance at 30 June 2012 3 877 807 8 161 605 7 301 054 604 096 18 528 606 3 339 442 41 812 610 

Total 

Balance at 1 July 2010 3 656 717 5 395 480 6 614 032 513 947 13 113 906 1 716 926 31 011 008 

Additions 14 226 283 630 187 667 32 245 126 178 661 861 1 305 807 


write-offs (18 647) (8 904 ) (1 411 ) (13 405 ) (65 130 ) (41 497 ) (148 994) 

Revaluations 192 972 1 812 244 - - 5 519 039 - 7 524 255 

Transfers from TCA* 18 575 159 506 - - - - 178 081 

Transfers to SPA* (2 600) (6 853 ) - - - - (9 453) 

Transfers to RMS* - - - - (18 427 ) (35 009 ) (53 436) 

Other movements - 296 192 (414 ) 40 462 (340 952 ) - (4 712) 

Classify (to)/from assets held 

for sale (5 698) - - - - - (5 698) 

Balance at 30 June 2011 3 855 545 7 931 295 6 799 874 573 249 18 334 614 2 302 281 39 796 858 

Accumulated depreciation 

Balance at 1 July 2011 - (2 548 537 ) (4 324 386 ) (327 806 ) (8 131 541 ) - (15 332 270) 

Depreciation for the year - (161 431 ) (172 867 ) (40 521 ) (470 541 ) - (845 360) 

Revaluations - - - - - - - 


write-offs - (44 ) 7 319 12 013 207 106 - 226 394 

Other movements (11 267 ) - (487 ) 11 351 - (403) 

Balance at 30 June 2012 - (2 721 279 ) (4 489 934 ) (356 801 ) (8 383 625 ) - (15 951 639) 

Balance at 1 July 2010 - (1 766 847 ) (4 140 176 ) (289 058 ) (5 461 740 ) - (11 657 821) 

Depreciation for the year - (128 780 ) (186 036 ) (48 554 ) (420 889 ) - (784 259) 

Revaluations - (656 614 ) - - (2 261 326 ) - (2 917 940) 

Transfer to RMS - - - - 259 - 259 


write-offs - 7 858 1 411 8 970 8 642 - 26 881 

Other movements - (4 154 ) 415 836 3 513 - 610 

Balance at 30 June 2011 - (2 548 537 ) (4 324 386 ) (327 806 ) (8 131 541 ) - (15 332 270) 

Net carrying amounts 

At 1 July 2010 3 656 717 3 628 633 2 473 856 224 889 7 652 166 1 716 926 19 353 187 

At 30 June 2011 3 855 545 5 382 758 2 475 488 245 443 10 203 073 2 302 281 24 464 588 

At 1 July 2011 3 855 545 5 382 758 2 475 488 245 443 10 203 073 2 302 281 24 464 588 

At 30 June 2012 3 877 807 5 440 326 2 811 120 247 295 10 144 981 3 339 442 25 860 971 

* TCA: former Transport Construction Authority * TfNSW: Transport for New South Wales 

* SPA: State Property Authority * RMS: Roads and Maritime Services 

74 




9.3 Valuation of property, plant and equipment 

To confirm that the carrying value of the asset classes for land and buildings and rolling stock materially 

reflects fair value as at 30 June 2012, an independent valuer reviewed the appropriateness of the 

replacement costs derived at the time of the last revaluation. Infrastructure was reviewed by management 

using an external methodology. 

(a) Land 

Land, other than land identified as available for sale, was valued by the Land and Property Management 

Authority on the basis of existing use as at 1 January 2011 and an indexation factor applied for the period 1 

January 2011 to 30 June 2011. Each area was valued taking into account adjacent land use values, 

discounted to reflect limited existing use of the subject land, and its physical attributes. An increase in the 

value of this class of asset, totalling $193m was credited to the Asset Revaluation Reserve in 2010-11. 

Land identified as available for sale was valued by the Land and Property Management Authority as at 30 

June 2011. 

(b) Buildings 

Buildings were valued by an independent valuer (Evans & Peck Pty Ltd) as at 31 March 2011 on the 

following bases: 

• Railway stations / commercial / industrial type buildings and leased properties are portions of railway 

property generally adjacent to the corridor, the majority of which is used for railway purposes, and which 

land is not intended to be sold. Such properties were classed as specialised buildings and were valued 

at the replacement cost of the assets’ remaining economic benefits based on a modern equivalent 

asset. Indirect costs, professional and builders’ fees were added to direct costs. An additional 

allowance is made for heritage buildings to replicate the heritage appearance. 

• Residences are severable, stand alone, properties that may be sold and, therefore, were classed as 

non specialised buildings and were valued at market value. 

An increase in the value of this class of asset, totalling $1,156m was credited to the Asset Revaluation 

Reserve in 2010-11. 


(c) Trackwork and infrastructure 

Trackwork and infrastructure was valued by an independent valuer (Evans & Peck Pty Ltd) as at 31 March 

2011 at depreciated replacement cost, i.e. the current replacement cost of each asset less accumulated 

depreciation (which depreciation is calculated by reference to the remaining life of each asset as 

determined by RailCorp engineers). Replacement cost is measured by reference to the lowest cost of 

replacing the economic benefits with a technologically modern equivalent optimised asset, having regard to 

differences in the quality and quantity of outputs and operating costs, and adjusting for over design, over 

capacity and redundant components. An increase in the value of this class of asset, totalling $3,257m was 

credited to the Asset Revaluation Reserve in 2010-11. 

(d) Rolling stock 

Rolling stock was valued by an independent valuer as at 30 June 2009 at depreciated replacement cost 

based on replacement costs of both domestic and international vehicles adjusted by an optimisation factor 

to reflect the technical and functional obsolescence and attractiveness of the fleet sub types relative to the 

modern equivalent. RailCorp engineers confirmed technical data and the remaining life of rolling stock. An 

increase in the value of this class of asset, totalling $107.5m was credited to the Asset Revaluation 

Reserve in 2008-09. 

(e) Major Plant and Equipment 

Major plant and equipment, a sub class of plant and machinery, was revalued by RailCorp management as 

at 30 June 2009 by obtaining current replacement cost from major suppliers and determining economic life 

and remaining life to obtain a depreciated replacement cost. An increase in the value of this sub-class of 

asset, totalling $58.1m was credited to the Asset Revaluation Reserve in 2008-09. 


75



9.4 Leasing arrangements – certain rolling stock 

RailCorp is the lessee to leasing arrangements for some of its rolling stock. Each arrangement is 

accounted for as a single linked transaction in accordance with its economic substance. The arrangements 

do not restrict RailCorp’s use of the rolling stock in normal operations and have terms of up to 36 years. 

The leases include options for RailCorp to purchase the rolling stock on certain specified future dates. 

Refer Note 2.5(v). 

9.5 Heritage Rolling stock 

Heritage rolling stock, which includes locomotives and carriages, is held for its historical significance. It is 

recorded at nominal value. 

Note 10 Intangible assets 

10.1 Class 

Consolidated 

Parent 


$000 $000 $000 $000 

Software 

Gross carrying amount 214 327 178 652 214 318 178 643 

Less accumulated amortisation 134 321 107 035 134 318 107 034 

Net carrying amount of software 80 006 71 617 80 000 71 609 

Software works in progress 162 765 101 850 162 765 101 850 

Total intangible assets 242 771 173 467 242 765 173 459 

10.2 Movements during the year 

Software Software work 

Total 

in progress 

$000 $000 $000 

2012 

Carrying amount at start of year 71 617 101 850 173 467 

Additions 37 182 21 747 58 929 

Disposals/write-offs (937 ) - (937 ) 

Amortisation expense (27 856 ) - (27 856 ) 

Transfers - 39 168 39 168 

Carrying amount at end of year 80 006 162 765 242 771 


Carrying amount at start of year 77 572 71 689 149 261 

Additions 23 185 30 688 53 873 

Disposals/write-offs - (527 ) (527 ) 

Amortisation expense (30 566 ) - (30 566 ) 

Other movements 1 426 - 1 426 

Carrying amount at end of year 71 617 101 850 173 467 

Note 11 Other assets 

Parent and 

Consolidated 

Parent and 

Consolidated 

Note 30.6.2012 30.6.2011 

$000 $000 

Earned portion of right to receive Airport Line stations 2.16 40 223 35 490 

Milestone advances under rolling stock PPP contract 18.4 29 872 34 487 

Total other assets 70 095 69 977 

76 



Note 12 Trade and other payables 

12.1 Current trade and other payables 

Consolidated 

Parent 


$000 $000 $000 $000 

Trade payables 173 082 135 965 173 071 135 940 

Capital works accruals 231 366 133 306 231 366 133 298 

Accrued salaries and wages 40 401 33 352 40 401 33 333 

Other payables and accruals 197 814 204 416 197 704 204 381 

Deferred revenue 20 794 18 480 20 754 18 480 

Total current trade and other payables 663 457 525 519 663 296 525 432 

12.2 Fair value 

Due to the short-term nature of current trade and other payables, their carrying value is deemed to 

approximate their fair value. 

12.3 Risk exposure 

Information about RailCorp exposure to payables with a foreign exchange risk is provided in Note 20. 

Note 13 Borrowings and finance lease liabilities 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 


Current 

Borrowings - 332 300 

Finance lease liabilities 18.4 13 663 2 361 

13 663 334 661 

Non-current 

Borrowings 124 939 125 189 

Finance lease liabilities 18.4 474 327 254 719 

599 266 379 908 

Total borrowings and finance lease liabilities 612 929 714 569 

The Finance Lease relates to the provision of a maintenance facility, simulators and ten sets of trains under 

a Public Private Partnership (PPP) for rolling stock. 


77


Note 14 Provisions 

14.1 Provisions 

Consolidated 

Parent 


Note $000 $000 $000 $000 

Current provisions 

Annual leave (see note (a) below) 175 305 166 207 175 272 166 195 

Long service leave (see note (a) below) 14.3 319 631 266 431 319 631 266 431 

Pay in lieu of certain holidays worked 

23 155 20 305 23 155 20 305 

(see note (a) below) 

Redundancy 14.12 75 000 - 75 000 - 

Total current employee benefits 593 091 452 943 593 058 452 931 

Workers’ compensation 14.5 17 725 17 269 17 725 17 269 

Public liability claims 14.6 7 122 4 594 7 122 4 594 

Legal claims 14.7 6 546 874 6 546 874 

Airport Line asset replacement 14.8 1 340 719 1 340 719 

Land and buildings remediation 14.10 11 967 15 131 11 967 15 131 

Ballast disposal 14.11 5 684 14 562 5 684 14 562 

Restoration of leased premises - 3 522 - 3 522 

Quarry restoration 14.9 1 717 - 1 717 - 

Other - 589 - 589 

Total current provisions 645 192 510 203 645 159 510 191 

Non-current provisions 

Superannuation 14.2 625 833 289 908 625 833 289 908 

Long service leave (see note (a) below) 14.3 34 837 27 193 34 837 27 193 

Total non-current employee benefits 660 670 317 101 660 670 317 101 


Public liability claims 14.6 - 3 986 - 3 986 

Airport line asset replacement 14.8 8 128 7 955 8 128 7 955 

Ballast disposal 14.11 12 522 - 12 522 - 

Quarry restoration 14.9 3 602 4 081 3 602 4 081 

Restoration of leased premises 3 375 - 3 375 - 


Total non-current provisions 823 296 465 333 823 296 465 333 

Total provisions 

Superannuation 14.2 625 833 289 908 625 833 289 908 

Annual leave 175 305 166 207 175 272 166 195 

Long service leave 14.3 354 468 293 624 354 468 293 624 

Pay in lieu of certain holidays worked 23 155 20 305 23 155 20 305 

Redundancy provision 14.12 75 000 - 75 000 - 

Total employee benefits 1 253 761 770 044 1 253 728 770 032 


Public liability claims 14.6 7 122 8 580 7 122 8 580 

Legal claims 14.7 6 546 874 6 546 874 

Airport Line asset replacement 14.8 9 468 8 674 9 468 8 674 

Quarry restoration 14.9 5 319 4 081 5 319 4 081 


Ballast disposal 14.11 18 206 14 562 18 206 14 562 

Restoration of leased premises 3 375 3 522 3 375 3 522 

Other - 589 - 589 

Total provisions 1 468 488 975 536 1 468 455 975 524 

(a) In accordance with Australian Accounting Standards all annual leave and unconditional long service leave is 

classified as a current liability in the Statement of Financial Position because RailCorp does not have an 

unconditional right to defer settlement. Only conditional long service leave is shown as a non current liability. 

However, on the basis of past payment experience, leave is expected to be settled in the following pattern: 

78 



Note 14 Provisions (continued) 

14.1 Provisions (continued) 

Within 

12 months 

$000 

Later than 


$000 

Total 

$000 


Long service leave 37 891 316 577 354 468 

Annual leave 134 927 40 345 175 272 

Pay in lieu of certain holidays worked 23 155 - 23 155 

195 973 356 922 552 895 

Within 


$000 

Later than 


$000 

Total 

$000 


Long service leave 35 667 257 957 293 624 

Annual leave 125 899 40 296 166 195 

Pay in lieu of certain holidays worked 20 305 - 20 305 

181 871 298 253 480 124 

14.2 Superannuation 

14.2.1 Overview 

Employer contributions are made to 3 defined-benefit superannuation schemes administered by the SAS 

Trustee Corporation (STC): the State Authorities Superannuation Scheme (SASS), the State Authorities 

Non-Contributory Superannuation Scheme (SANCSS) and the State Superannuation Scheme (SSS), 

which together form the Pooled Fund. Each scheme is closed to new members and its investments are 

held in trust by the Pooled Fund. At least a component of the final benefit is derived from a multiple of 

member salary and years of membership. All fund assets are invested by SAS Trustee Corporation at 

arm’s-length through independent fund managers. The defined-benefits scheme applies to the parent only. 


An underfunded scheme is recognised as a provision and an overfunded scheme is recognised as an 

asset. Details of both provisions and assets are given below. 

The recognised liability or asset at reporting date comprises the following: 


79



14.2.1 Overview (continued) 

30.6.2012 

Underfunded schemes 

SASS SANCSS SSS Total 

$000 $000 $000 $000 

Accrued liability 1 680 365 176 288 52 013 1 908 666 

Estimated reserve account balance (1 137 950) (122 699) (22 184) (1 282 833) 

Net liability 542 415 53 589 29 829 625 833 

Future service liability (see Note (a) below) (98 025) (56 659) (1 331) (156 015) 

Surplus in excess of recovery available 

from schemes - - - - 

Net liability recognised in Statement of 

Financial Position 

542 415 53 589 29 829 625 833 

30.6.2011 

Underfunded schemes 

Accrued liability 1 476 047 157 470 36 198 1 669 715 

Estimated reserve account balance (1 215 390) (141 746) (22 671) (1 379 807) 

Net liability 260 657 15 724 13 527 289 908 

Future service liability (see note (a) below) (92 235) (52 779) (1 073) (146 087) 

Surplus in excess of recovery available 

from schemes - - - - 

Net liability recognised in Statement of 

Financial Position 

260 657 15 724 13 527 289 908 

Note (a) 

The Future Service Liability (FSL) does not have to be recognised by an employer. It is only used to determine if an 

asset ceiling limit should be imposed. Any prepaid superannuation asset recognised cannot exceed the total of any 

unrecognised past service cost and the present value of any economic benefits that may be available in the form of 

refunds from the plan or reductions in future contributions to the plan. Where the surplus in excess of recovery is zero, 

no asset ceiling limit is imposed. 

SASS SANCSS SSS 

Member numbers 

30.6.2012 

Contributors 3 512 3 526 14 

Deferred benefits - - 1 

Pensioners 238 - 15 

Pensions fully commuted - - - 

30.6.2011 

Contributors 3 748 3 765 17 

Deferred benefits - - 1 

Pensioners 190 - 13 

Pensions fully commuted - - - 

80 




14.2 Superannuation (continued) 

14.2.2 Reconciliation of the present value of the defined benefit obligation 


$000 $000 $000 $000 


Present value of defined benefit 

obligations at the beginning of the year 1 476 047 157 470 36 198 1 669 715 

Current service cost 18 572 6 852 206 25 630 

Interest cost 74 851 7 906 1 888 84 645 

Contributions by fund participants 15 149 - 308 15 457 

Actuarial (gains)/losses 205 062 23 140 14 235 242 437 

Benefits paid (109 316) (19 080) (822) (129 218) 


obligations at the end of the year 1 680 365 176 288 52 013 1 908 666 



obligations at the beginning of the year 1 422 971 150 990 35 543 1 609 504 


Interest cost 70 994 7 457 1 820 80 271 

Contributions by fund participants 14 989 - 378 15 367 

Actuarial (gains)/losses 27 395 (4 707) (625) 22 063 

Benefits paid (80 355) (3 005) (1 133) (84 493) 


obligations at the end of the year 1 476 047 157 470 36 198 1 669 715 

14.2.3 Reconciliation of the fair value of fund assets 



$000 $000 $000 $000 


Fair value of Fund assets at 

beginning of the year 1 215 389 141 746 22 671 1 379 806 

Expected return on fund assets 99 758 11 525 1 922 113 205 

Actuarial gains/(losses) (89 014) (11 493) (2 147) (102 654) 

Employer contributions 5 985 0 250 6 235 

Contributions by Fund participants 15 148 0 310 15 458 

Benefits paid (109 316) (19 079) (822) (129 217) 

Fair value of Fund assets at end 

of the year 1 137 950 122 699 22 184 1 282 833 


Fair value of Fund assets at 

beginning of the year 1 181 777 133 709 22 167 1 337 653 

Expected return on fund assets 97 353 10 918 1 877 110 148 

Actuarial gains/(losses) 1 626 124 (619) 1 131 

Employer contributions - - - - 

Contributions by Fund participants 14 989 - 379 15 368 

Benefits paid (80 355) (3 005) (1 133) (84 493) 

Fair value of Fund assets at end 

of the year 1 215 390 141 746 22 671 1 379 807 


81




14.2.4 Reconciliation of the assets and liabilities recognised in the Statement of Financial Position 


$000 $000 $000 $000 


Present value of partly funded 

defined benefit obligations at 

end of year 1 680 365 176 288 52 013 1 908 666 

Fair value of fund assets at end of 

year (1 137 950) (122 699) (22 184) (1 282 833) 

Subtotal 542 415 53 589 29 829 625 833 

Unrecognised past service cost - - - - 

Unrecognised gain/(loss) - - - - 

Adjustment for limitation on net 

asset - - - - 

Net Liability/(Asset) recognised 

in Statement of Financial 

Position at end of year 542 415 53 589 29 829 625 833 


Present value of partly funded 

defined benefit obligations at 

end of year 1 476 047 157 470 36 198 1 669 715 

Fair value of fund assets at end of 

year (1 215 390) (141 746) (22 671) (1 379 807) 

Subtotal 260 657 15 724 13 527 289 908 

Unrecognised past service cost - - - - 

Unrecognised gain/(loss) - - - - 

Adjustment for limitation on net 

asset - - - - 

Net Liability/(Asset) recognised in 

Statement of Financial Position 

at end of year 260 657 15 724 13 527 289 908 

14.2.5 Expense recognised in the Statement of Comprehensive Income 


$000 $000 $000 $000 


Components recognised as 

expenses 


Interest cost 74 851 7 906 1 888 84 645 

Expected return on Fund assets 

(net expenses) (99 758) (11 525) (1 922) (113 205) 

Expense/(income) recognised (6 335) 3 233 172 (2 930) 


Components recognised as 

expenses 


Interest cost 70 994 7 457 1 820 80 271 

Expected return on Fund assets 

(net expenses) (97 353) (10 918) (1 877) (110 148) 

Expense/(income) recognised (6 306) 3 274 158 (2 874) 

82 





14.2.6 Amounts recognised in Other Comprehensive Income 


$000 $000 $000 $000 


Actuarial (gains)/losses 

recognised in year 294 076 34 633 16 382 345 091 

Adjustment for limit on net assets - - - - 

Cumulative amount of actuarial 

(gain)/losses 294 076 34 633 16 382 345 091 


Actuarial (gains)/losses 

recognised in year 25 769 (4 831) (7) 20 931 

Adjustment for limit on net assets - - - - 

Cumulative amount of actuarial 

(gain)/losses 25 769 (4 831) (7) 20 931 

14.2.7 Fund assets 

The percentage invested in each asset class at the Statement of Financial Position date: 


% 


% 

Australian equities 28.0 33.4 

Overseas equities 23.7 29.5 

Australian fixed interest securities 4.9 5.7 

Overseas fixed interest securities 2.4 3.1 

Property 8.6 9.9 

Cash 19.5 5.1 

Other 12.9 13.3 


14.2.8 Fair value of Fund assets 

All Fund assets are invested by STC at arm’s-length through independent fund managers. 

14.2.9 Expected rate of return on assets 

The expected return on assets assumption is determined by weighting the expected long-term return for 

each asset class by the target allocation of assets to each class. The returns used for each class are net of 

investment tax and investment fees. 

14.2.10 Actual Return on Fund Assets 


$000 $000 $000 


Actual return on Fund assets 279 32 9 


Actual return on Fund assets 98 809 11 042 1 852 


83




14.2.11 Valuation method and principal actuarial assumptions at the Statement of Financial Position 

date 

a) Valuation method 

The Project Unit Credit (PUC) valuation method was used to determine the present value of the defined 

benefit obligations and the related current service costs. This method sees each period of service as giving 

rise to an additional unit of benefit entitlement and measures each unit separately to build up the final 

obligation. 

b) Economic assumptions 

2012 2011 

Salary increase rate (excluding promotional increases) 2.50% pa 3.50% pa 

Rate of CPI increase 2.50% pa 2.50% pa 

Expected rate of return on assets 8.60% pa 8.60% pa 

Discount rate 3.06% pa 5.28% pa 

c) Demographic Assumptions 

The demographic assumptions at 30 June 2012 are those that were used in the 2009 triennial actuarial 

valuation. The triennial review report is available from the NSW Treasury website. The current triennial 

actuarial review is due to be completed in December 2012. 

84 





14.2.12 Historical information: 


$000 $000 $000 


Present value of defined benefit obligation 1 680 365 176 288 52 013 

Fair value of Fund assets (1 137 950 ) (122 699) (22 184 ) 

(Surplus)/deficit in Fund 542 415 53 589 29 829 

Experience adjustments – Fund liabilities 205 062 23 139 14 235 

Experience adjustments – Fund assets 89 104 11 493 2 147 



Fair value of Fund assets (1 215 390 ) (141 746) (22 671) 


Experience adjustments – Fund liabilities 27 395 (4 707) (625) 

Experience adjustments – Fund assets (1 626 ) (124) 619 

2010 


Fair value of Fund assets (1 181 778 ) (133 709 ) (22 167) 



Experience adjustments – Fund assets (9 931 ) (904) (30) 

2009 







2008 

Present value of defined benefit obligation 1 243 505 121 569 21 801 


(Surplus)/deficit in Fund (64 772 ) (30 951) 1 616 

Experience adjustments – Fund liabilities (23 846 ) 2 203 1 697 


14.2.13 Expected contributions 


Expected employer contributions for 2013 0 0 0 


Expected employer contributions for 2012 0 0 0 

Actual employer contributions for 2012 0 0 0 


85




14.2.14 Funding arrangements for employer contributions 

a) Surplus/deficit 

The following is a summary of the financial position of the Fund calculated in accordance with 

AASB 25 Financial Reporting by Superannuation Plans: 


$000 $000 $000 


Accrued benefits 1 320 937 146 127 26 869 

Net market value of Fund assets (1 137 950) (122 699) (22 184) 

Net deficit 182 987 23 428 4 685 


Accrued benefits 1 313 644 141 738 25 405 

Net market value of Fund assets (1 215 390) (141 746) (22 671) 

Net (surplus)/deficit 98 254 (8) 2 734 

b) Contribution recommendations 

multiple of member 

contributions 


% member 

salary 

multiple of 

member 

contributions 


Recommended contribution rates for the 

entity were: 0.00 0.00 0.00 


Recommended contribution rates for the 

entity were: 0.00 0.00 0.00 

c) Funding method 

The method used to determine the employer contribution recommendations at the last actuarial review was 

the Aggregate Funding method. The method adopted affects the timing of the cost to the employer. 

Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient 

assets will be available to meet benefit payments to existing members, taking into account the current 

value of assets and future contributions. 

d) Economic assumptions 

The economic assumptions adopted for the last actuarial review of the Fund were: 

Weighted average assumptions 2012 2011 

Expected rate of return on Fund assets backing 

current pension liabilities 8.3% pa 8.3% pa 

Expected rate of return on Fund assets backing 

other liabilities 7.3% pa 7.3% pa 

Expected salary increase rate 4.0% pa 4.0% pa 

Expected rate of CPI increase 2.5% pa 2.5% pa 

86 





14.2.15 Nature of asset / liability 

If a surplus exists in the employer’s interest in the Fund, the employer may be able to take advantage of it 

in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary. 

Where a deficiency exists, the employer is responsible for any difference between the employer’s share of 

fund assets and the defined benefit obligations. 

14.3 Long service leave 

Long service leave is recognised as an expense and a provision when the obligations arises, which is 

usually through the rendering of service by an employee. 

Long service leave is measured at present value in accordance with AASB 119 Employee Benefits. This is 

based on the application of certain factors to employees with five or more years of service, using current 

rates of pay. 

The liability for long service leave was assessed by a consulting actuary, Mr G. Holley FIAA of Mercer 

Human Resource Consulting. The actuary assumed an interest rate of 3.0 % (2011: 5.2%) per annum and 

a salary growth rate of 3.5% (2011: 3.5%-4%) per annum. 

14.4 Movements in provisions parent and consolidated (other than employee 

benefit provisions) 

Carrying 

amount at 

start of year 

Increase in 

provision 

Discounting 

adjustment 

Sub Total 

Payment of 

claims 

Unused 

amount 

reversed 

Carrying 

amount at 

end of year 

$000 $000 $000 $000 $000 $000 $000 


Workers’ 

Compensation 100 272 20 103 4 656 125 031 25 740 - 99 291 

Public liability 

claims 8 580 279 - 8 859 1 737 - 7 122 

Legal claims 874 6 546 - 7 420 572 302 6 546 

Airport Line asset 

replacement 8 674 - 1 067 9 741 273 - 9 468 

Quarry restoration 4 081 235 1 003 5 319 - - 5 319 

Land and buildings 

remediation 64 338 6 665 739 71 742 6 342 - 65 400 

Ballast disposal 14 562 8 325 (739) 22 148 3 194 748 18 206 

Restoration of 

leased premises 3 522 39 (186) 3 375 - - 3 375 

Other 589 - - 589 85 504 - 



Workers’ 

Compensation 89 442 31 259 3 999 124 700 22 734 1 694 100 272 

Public liability claims 4 718 6 501 - 11 219 2 639 - 8 580 

Legal claims 3 048 797 - 3845 1 662 1 309 874 

Airport Line asset 

replacement 9 548 - 472 10 020 829 517 8 674 

Quarry restoration 3 809 155 117 4 081 - - 4 081 

Land and buildings 

remediation 65 480 5 557 1 186 72 223 7 857 28 64 338 

Ballast disposal 9 614 9 333 - 18 947 3 457 928 14 562 

Restoration of leased 

premises 3 973 242 (81) 4 134 288 324 3 522 

Other 1 078 - - 1 078 101 388 589 


87



14.5 Workers’ compensation 

Workers’ compensation insurance is in place to cover any claim exceeding $1m and the workers’ 

compensation provision is maintained for smaller claims, for which RailCorp is a licensed self-insurer. 

The workers’ compensation liability at year end was assessed by McMahon Actuarial Services assuming a 

discount rate ranging from 2.1% to 4.1% over the next 10 years (2011: ranging from 4.7% to 5.8% per 

annum) and a future wage inflation rate of 4% per annum over the next 10 years (2011:4% per annum over 

the next 10 years). 

The actuary has advised that no allowance was made for asbestos related claims (2011: nil). Liabilities for 

such claims prior to July 1996 were vested to the Crown. Post 1996 exposure to asbestos is low, highly 

uncertain and, therefore, cannot be quantified with any reliability. 

14.6 Public liability claims 

The public liability claims provision recognises claims against RailCorp that arise from personal injuries or 

property damage occurring on its premises or involving its assets. 

Any claim recoverable from RailCorp’s insurer is also recognised as a receivable or disclosed as a 

contingent asset, depending on its probability of settlement. 

Refer Notes 6 and 19. 

The liability at year end was assessed by management. The likely amount to be settled was assessed on 

the basis of past experience. The likely timing of settlement was assessed by reviewing individual claims. 

The liability is inherently uncertain due to disputes over the existence or quantum of individual claims. 

14.7 Legal claims 

The legal claims provision recognises claims against RailCorp arising from prosecutions or fines in relation 

to legislative or contractual breaches or other matters. 

The liability at year end was assessed by management by reviewing individual claims. The liability is 

inherently uncertain due to disputes over the existence or quantum of individual claims. 

14.8 Airport Line asset replacement 

The Airport Line asset replacement provision recognises RailCorp’s contractual obligation to fund the 

replacement of major track and tunnel assets on the Airport Line, by the line’s maintenance contractor 

during the term of the contract to 2030. Any unused balance of the provision remaining in 2030 will be 

shared equally with the maintenance contractor. 

The liability at year end is the unused portion of the contractually-specified maximum sum to be provided. 

The quantum and timing of payments are inherently uncertain as they are based on unpredictable future 

claims by the maintenance contractor. This provision has been discounted to a present value that reflects 

the time value of money. 

14.9 Quarry restoration 

The quarry restoration provision recognises RailCorp’s legal obligation to restore quarry sites when 

operations cease. 

The liability at year end was assessed by an independent expert undertaking site inspections to estimate 

the minimum cost of the necessary restoration work. The liability is inherently uncertain due to the time 

likely to elapse before the restoration is required. 

88 




14.10 Land and buildings remediation provision 

This provision is comprised of $31.8m (2011: $31.5m) for remediation of asbestos and $33.6m (2011: 

$32.8m) for remediation of contaminated land. 

In response to the identification of asbestos contamination in a railway station in March 2006, RailCorp 

initiated a program of hazardous materials surveys to identify the full extent of contamination and remedial 

action required in stations. 

The program has since been extended to encompass other hazardous materials and operational buildings 

including signal boxes, depots and maintenance centres as well as rolling stock. 

RailCorp will undertake incident management and remediation funded by this provision out to 30 June 

2017. 

14.11 Ballast disposal provision 

The ballast disposal provision recognises RailCorp’s legal obligation in relation to the disposal of nonrecyclable 

landfill and materials arising from its ballast recycling operations. 

The liability was assessed at 30 April 2012 by management after investigation of stockpiles at the Chullora 

site. The liability is inherently uncertain due to the quantum and timing of future disposal. 

14.12 Redundancy 

A provision has been established for the cost of RailCorp’s voluntary redundancy program. The program is 

expected to reduce 750 non-front line positions by June 2013. 

Note 15 Contributed equity 

15.1 Contributed equity 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

Contributed equity at start of year 13 715 719 13 600 268 


Net assets contributed by Government 15.2 931 296 115 451 

Contributed equity at end of year 14 647 015 13 715 719 

15.2 Net assets contributed by the Government 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

Assets transferred 

Cash assets 105 851 - 

Property, plant and equipment (net) 825 445 115 451 

Total net assets contributed 931 296 115 451 

Certain work-in-progress and assets constructed for RailCorp by the former Transport Construction 

Authority have been transferred and/or vested to RailCorp by Transport for NSW during the year totalling 

$828.8m. In addition, RailCorp transferred one parcel of land to the former Transport Construction Authority 

for $0.8m and four parcels of land to the State Property Authority totalling $2.6m. 

Refer Notes 5.4 and 9.2. 

The net transfers/vestings have been treated as equity contributions by Government and are recognised as 

direct adjustments to contributed equity. 


89


Note 16 Reserves 

The Hedging Reserve recognises the cumulative gains or losses on hedging instruments used for existing 

cash flow hedges. The movements during the year were: 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

Hedging Reserves 

Balance at start of year (11 863) (13 814) 

Net gain/(loss) in forward foreign exchange 994 (2 573) 

Net gain/(loss) in commodity swaps (4 481) 4 524 

Reserve transferred from retained earnings - - 

Balance at end year (15 350) (11 863) 

Asset Revaluation Reserve 

Balance at start of year 8 242 368 3 638 229 

Increase/(decrease) as a result of revaluation 694 4 606 315 

Reserve transferred (to)/from retained earnings (17 509) (2 176) 

Balance at end of year 8 225 553 8 242 368 

Total reserves 8 210 203 8 230 505 

Note 17 Retained earnings 

Consolidated 

Parent 


$000 $000 $000 $000 

Retained earnings at start of year 835 962 832 230 835 932 832 230 

Surplus for the year 419 034 22 487 419 032 22 457 

Superannuation actuarial gains/(losses) (345 091) (20 931) (345 091) (20 931) 

Transfer of reserves to/(from) retained 

earnings 

17 509 2 176 17 509 2 176 

Retained earnings at end of year 927 414 835 962 927 382 835 932 

Note 18 Expenditure commitments 

18.1 Expenditure commitments 

Operating leases 

Parent and 

Consolidated 

Parent and 

Consolidated 

2011-12 2010-11 

$000 $000 

Within 12 months 62 874 102 393 

12 months or longer but not longer than 5 years 54 277 120 490 

Longer than 5 years 13 701 41 263 

Total operating leases 130 852 264 146 

Total property, plant and equipment (including 

intangible assets) 

491 267 752 771 

Rolling stock PPP contract commitments are detailed in note 18.4 

The expenditure commitments include any associated Goods and Services Tax. Related input tax credits of 

$56.6m (2011: $92.4m) are expected to be recoverable from the Australian Taxation Office. 

90 



Note 18 Expenditure commitments (continued) 

18.2 Minimum lease payments committed under non-cancellable operating leases 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 


12 months or longer but not longer than 5 years 54 277 120 490 

Longer than 5 years 13 701 41 263 

Total committed 130 763 261 473 

Minimum lease payment commitments include any associated Goods and Services Tax. Related input tax 

credits of $11.8m (2011: $23.8m) are expected to be recoverable from the Australian Taxation Office. 

18.3 Restated Stations Agreement 

Claims made against RailCorp by the Airport Link Company Limited (ALC) were settled in October 2005 

when RailCorp and ALC entered into a Restated Stations Agreement. RailCorp has a commitment to pay a 

capped amount on the basis of an agreed proportion of train fares generated by the Airport Line stations 

business. As at 30 June 2012 the outstanding commitment due to be paid from the capped amount is nil 

(2011: $6.1m). 

In March 2011 RailCorp and ALC varied the agreement whereby RailCorp will pay ALC the Station Access 

Fee it previously charged to customers at Green Square and Mascot stations. 

18.4 Rolling stock PPP contract commitments 

Reliance Rail, as the successful proponent of the rolling stock PPP, has been commissioned to: 

• Design, manufacture and deliver 626 carriages, together with four simulators. 

• Design and construct a maintenance facility at Auburn; and 

• Provide through life support for the trains, the maintenance facility and the simulators over a period 

of 30 years. 


Payments for the above are being made via a series of Standard Availability Unit (SAUs) payments by 

RailCorp to Reliance Rail. The SAUs ramp up progressively as each set becomes available for passenger 

service. The SAU payments are inflated at CPI. 

The sets will be progressively available for passenger service as each set achieves practical completion. 

Overall, the total payments to be made by RailCorp to Reliance Rail, including milestone payments and 

financing costs, over the term of the project are estimated to be $9,753m (2011: $9,749m) in nominal 

dollars. 

The RailCorp agreement with Reliance Rail constitutes a finance lease (Refer Note 2.5(ii)). These assets 

and associated finance lease liabilities are recognised on completion and delivery of the assets. 

The Auburn Maintenance Facility (AMF) reached practical completion on 18 June 2010. The lease liability, 

inclusive of accrued interest, at 30 June 2012 was $245.7m (2011: $229.9m). 

The Simulators reached practical completion on 30 September 2010. The lease liability, inclusive of 

accrued interest, at 30 June 2012 was $4.2m (2011: $3.9m). 

Nine sets of the rolling stock achieved practical completion during 2011-12 (2011: One set achieved 

practical completion) resulting in an addition to leased rolling stock of $214.2m. An associated finance 

lease liability of $214.2m was also recognised. Milestone payments made in respect of design and 

development of the rolling stock are applied on a pro-rata basis to the rolling stock lease liability at the rate 

of $0.5m per set. The lease liability, inclusive of the application of the milestone payment and accrued 

interest, at 30 June 2012 was $238.1m (2011: $23.3m). 


91


Note 18 Expenditure commitments (continued) 

18.4 Rolling stock PPP contract commitments (continued) 

In addition to the capitalisation of the leased assets above, at practical completion project-related 

expenditure is allocated to the associated fixed assets. These capitalised expenditures are depreciated in 

line with the fixed asset to which they relate. 

Interest of $21.3m (2011: $17.0m) has been accrued in the current year in respect to the finance lease 

liability for the rolling stock, maintenance facility and simulators. 

No milestone payments were made in 2011-12 (2010-11: $12m) to Reliance Rail. These payments are 

interest free advances pending delivery of the associated asset upon which event those advances are 

applied against the finance lease liability. 

The commitment under this contract is as follows (excluding GST): 

Parent and 

Consolidated 

Parent and 

Consolidated 


$000 $000 

Finance lease liabilities 


12 months or longer but not longer than 5 years 157 740 64 515 

Longer than 5 years 1 253 080 730 422 

Total minimum lease payments 1 430 855 798 678 

Less amounts representing finance charges (942 865) (541 598) 

Present value of net future minimum lease payments 487 990 257 080 

(Included in the financial statements as Borrowings) 

Classified as: 

Current 13 13 663 2 361 

Non - Current 13 474 327 254 719 

Total 487 990 257 080 

Other PPP contract commitments 


12 months or longer but not longer than 5 years 843 161 823 911 

Longer than 5 years 7 372 332 8 106 135 

Total other PPP contract 8 322 511 8 950 434 

Note 19 Contingent liabilities and contingent assets 

Contingent liabilities are possible obligations arising from past events whose existence will be confirmed 

only by the occurrence or non-occurrence of one or more uncertain future events. 

Conversely, they are present obligations arising from past events which are not recognised because it is 

uncertain or not probable that resources will be required to settle the obligation or the amount of the 

obligation cannot be reliably measured. However their probability of settlement is not remote. 

Contractual and other claims against RailCorp arise in the ordinary course of operations. The existence or 

quantum of each claim is usually in dispute and the outcome cannot be measured reliably. 

RailCorp has certain obligations under the contract for the rolling stock PPP and the NSW Government 

guarantees the performance of those obligations. However, there is no expectation that those guarantees 

will be exercised. 

RailCorp by virtue of its operations has a range of possible contamination in land and buildings. RailCorp 

is engaged in an ongoing process of identifying necessary remediation of land and buildings the final 

amount of which is contingent on further investigation and cannot be accurately calculated at the date of 

preparation of these Financial Statements. Land and buildings remediation, where there is a legal or 

constructive obligation to undertake remediation and the cost of which can be reliably estimated has been 

provided for. Refer Note 14.10. 

92 



Note 19 Contingent liabilities and contingent assets (continued) 

Contingent assets represent matters that are unconfirmed (pending the occurrence or non-occurrence of 

an uncertain future event), or not reliably measurable or unlikely to be settled. However, their probability of 

settlement is “probable” but not “virtually certain”. 

Contractual and other recoveries represent claims made by RailCorp against others in relation to 

contractual breaches and insurance claims in relation to other matters. The existence or quantum of each 

claim is usually in dispute. 

Note 20 Financial instruments 

20.1 Financial instruments 

RailCorp and the controlled entity hold the following financial instruments: 

Consolidated 

Parent 

30.06.12 30.06.11 30.06.12 30.06.11 

$000 $000 $000 $000 

Financial assets 

Cash and cash equivalents 77 609 15 034 77 467 14 925 

Trade and other receivables 141 844 145 737 141 809 145 721 

Derivative financial assets 816 4 735 816 4 735 

Total financial assets 220 269 165 506 220 092 165 381 

Financial liabilities 

Trade and other payables 581 309 444 929 581 148 444 851 

Borrowings 124 939 457 489 124 939 457 489 

Finance Leases 487 990 257 080 487 990 257 080 

Derivative financial liabilities 16 166 16 598 16 166 16 598 

Total financial liabilities 1 210 404 1 176 096 1 210 243 1 176 018 

20.2 Financial risks 

The operational activities of RailCorp expose it to a variety of financial risks: credit risk, liquidity risk and 

market risk (including currency risk, interest rate risk and commodity price risk in respect of distillate and 

electricity purchases). A risk management program focuses on financial performance and seeks to 

minimise potential adverse effects from financial market price movements. RailCorp uses derivative 

instruments to hedge financial exposures. Derivatives are exclusively used for hedging purposes, i.e. not 

as trading or other speculative instruments. Methods used to measure risk include sensitivity analysis in 

the case of interest rate, foreign exchange and other commodity price risks, and an ageing analysis for 

credit risk. 


Risk management is carried out under approved policies. RailCorp’s Treasury Management Policy 

establishes a prudential framework covering policies, best practice internal controls and reporting systems 

for the management of financial risks within RailCorp’s operation. The policy covers specific areas such as 

foreign exchange risk, interest rate risk, commodity risk, credit risk, use of derivative financial instruments 

and investment of excess funds. The RailCorp Treasury Management Policy is approved annually. 

The primary objective of this policy is to achieve management of all financial risks in strict compliance with 

internal policies and guidelines within the broad framework of the NSW Treasury Management Policy 

(TPP07-7). Accounting for Treasury Instruments is in accordance with NSW Treasury accounting policy, 

Accounting for Financial Instruments (TPP08-1). 

RailCorp Treasury identifies, evaluates and hedges financial risk in close cooperation with RailCorp’s 

operating groups. Treasury instruments approved for the management of financial risk are in accordance 

with the Public Authorities (Financial Arrangements) Act 1987. 

20.3 Market risk 

Market risk relates to fluctuations in the fair value of future cash flows of financial instruments because of 

changes in market prices. This applies to RailCorp’s foreign exchange, interest rate and commodity price 

hedging instruments. 


93


Note 20 Financial instruments (continued) 

20.3 Market risk (continued) 

Sensitivity analysis on market risk is based on price variability taking into account the economic 

environment in which RailCorp operates and the time frame for assessment, that is, until the end of the 

next reporting period. The sensitivity analysis is based on financial instruments held at the balance date. 

The analysis assumes that all other variables remain constant. 

20.3.1 Foreign exchange risk 

RailCorp is exposed to foreign exchange risk arising from currency exposures. Foreign exchange risk 

arises from contractual commercial transactions denominated in a foreign currency. The risk is measured 

using sensitivity analysis and cash flow forecasting. 

The RailCorp Treasury Management Policy covers all elements of financial risk including foreign exchange 

risk. The policy requires 100% hedging of all material foreign exchange exposures. 

Purchases involving foreign currency risk exposure that exceeds an aggregate of A$25,000, are required to 

be reviewed in advance of the signing by the Treasury section to assess the financial risk and formulate 

strategies to manage the risk. The Treasury section confirms a budget rate with project managers based on 

current forward prices and hedging strategies implemented. Counterparty risk is minimised by conducting 

all foreign exchange transactions with eligible counterparties (defined below under Note 20.4 Credit risk). 

RailCorp’s foreign currency contracts outstanding at year end were: 

Weighted Average 

Exchange Rate 

Contract Value Fair Value 

Maturity profiles 2012 2011 2012 2011 2012 2011 

A$000 A$000 A$000 A$000 

Contracts denominated in US Dollars 

(USD) 

Not later than 3 months 0.8327 0.8054 21 637 17 249 17 648 13 022 

Later than 3 months and not later than 12 

months 0.9620 0.8516 16 978 24 621 16 272 20 120 

Later than 12 months 0.9181 0.8138 4 392 4 265 4 189 3 427 

Total hedged US Dollar contracts 43 007 46 135 38 109 36 569 

Contracts denominated in Euros 



months 0.6774 0.6831 21 030 17 498 18 020 16 557 

Later than 12 months 0.6600 0.6681 15 589 40 169 13 466 38 641 

Total hedged Euro contracts 60 325 74 445 50 446 70 201 

Contracts denominated in Japanese Yen 



months - 76.92 - 9 960 - 9 211 

Later than 12 months - - - - - - 

Total hedged Japanese Yen contracts 2 495 14 129 2 358 12 243 

Contracts denominated in Korean Won 

Not later than 3 months 1073.10 1097.76 427 2 126 391 2 042 


months - 1057.48 - 716 - 667 


Total hedged Korean Won contracts 427 2 842 391 2 709 

94 




20.3.1 Foreign exchange risk (continued) 

Foreign currency contracts outstanding (continued) 

Weighted Average 

Exchange Rate 

Contract Value Fair Value 

Maturity profiles 2012 2011 2012 2011 2012 2011 

A$000 A$000 A$000 A$000 

Contracts denominated in Pounds Sterling 

Not later than 3 months 0.5880 0.6220 277 406 251 380 


months - 0.5873 - 411 - 375 


Total hedged Pounds Sterling contracts 277 817 251 755 

Contracts denominated in Swedish Kroner 

Not later than 3 months 6.1492 6.5213 24 177 21 170 


months - 6.2686 - 1 160 - 1 085 


Total hedged Swedish Kroner contracts 24 1 337 21 1 255 

Total hedged purchase 106 555 139 705 91 576 123 732 

Foreign exchange risk sensitivity analysis 

The following table shows the effect on Other Comprehensive Income at the reporting date of a 10% 

movement in exchange rates, with all other variables being held constant. All underlying exposures and 

related hedges are taken into account. 

Although currency markets have been volatile in the current reporting period, a sensitivity of 10 per cent 

has been selected for use at the reporting date, as this is considered reasonable, based on the current 

Australian dollar (AUD) level and the historical volatility of the AUD against other currencies. Based on the 

value of the AUD at the reporting date as compared with the currencies below, adverse or favourable 

movements in the foreign exchange rates would result in an increase or decrease in the AUD fair value 

respectively. 


Based on the financial instruments held at 30 June 2012, had the AUD spot price weakened / strengthened 

by 10% against currencies in which contracts are held, with all other variables held constant, the impact on 

Comprehensive Income is shown in the table below. 

An adverse movement in exchange rates implies an increase in the AUD against the hedged currency. A 

favourable movement represents a fall in the AUD against the hedged currency. 

Decrease of 10% 

Surplus 

Higher/(Lower) 



2012 2011 2012 2011 

$000 $000 $000 $000 

US Dollar - - (3 407) (3 246) 

Euros - - (4 474) (6 123) 

Japanese Yen - - (214) (1 082) 

Korean Won - - (36) (245) 

Pounds Sterling - - (23) (67) 

Swedish Kroner - - (2) (113) 

Total - - (8 156) (10 876) 


95



20.3.1 Foreign exchange risk (continued) 

Increase of 10% 

Surplus 





$000 $000 $000 $000 

US Dollar - - 4 164 3 967 

Euros - - 5 468 7 484 

Japanese Yen - - 261 1 323 

Korean Won - - 44 300 

Pounds Sterling - - 28 82 

Swedish Kroner - - 2 138 

Total - - 9 967 13 294 

20.3.2 Commodity price risk 

RailCorp is exposed to a range of commodity price risks, principally from distillate and electricity purchases. 

Australian dollar costs under the supply agreements price mechanism are reflective of movements in 

Singapore Gas Oil prices and AUD/USD exchange rates. RailCorp Treasury Management Policy requires 

100% of exposures be hedged in year 1, year 2 up to 60% and year 3 up to 40% hedged given the 

continuous nature of the exposure. RailCorp hedges its distillate exposure by entering into Singapore Gas 

Oil swap and USD forward contracts. 

RailCorp purchases its electricity under fixed price contracts. RailCorp’s policy for electricity hedging is 

similar to distillate operations however electricity hedging applies only to periods not under contract. 100% 

of exposures are required to be hedged in year 1. Up to 60% of exposures can be hedged in year 2 and up 

to 40% in year 3. Hedges are subsequently closed out once a fixed price contract is in place. 

At 30 June 2012 there were only commodity hedge contracts in place for distillate purchases. 

Contract Value 

Fair Value 

Maturity profiles 2012 2011 2012 2011 

$000 $000 $000 $000 

Not later than 1 year 

Favourable 4 732 10 811 5 401 14 306 

Non-favourable 12 001 2 882 10 961 2 527 

16 733 13 693 16 362 16 833 

Between 1 and 5 years 

Favourable 1 696 3 427 1 724 4 396 

Non-favourable 1 702 - 1 674 - 

3 398 3 427 3 398 4 396 

Total commodity swap contracts 20 131 17 120 19 760 21 229 

Commodity price risk sensitivity analysis 

Based on contracts in place at 30 June 2012, had the Singapore Gas Oil spot price weakened or 

strengthened by 10%, with all other variables held constant, the impact on Comprehensive Income is 

shown in the table below 

Index 

Change in unit 

price 

Impact on 

Surplus 


Impact on 

Surplus 


Impact on Other 

Comprehensive 

Income 


$000 


Comprehensive 

Income 


$000 

$000 

$000 

Distillate -10% - - (1 937) (2 033) 

+10% - - 1 937 2 033 

Significant assumptions used in the commodity price exposure sensitivity analysis include reasonably 

possible movements in commodity price rates, determined based on a review of the last 2 years historical 

movements and economic forecasts. 

96 




20.3.3 Interest rate risk 

Interest rate risk refers to the market value of financial instruments or cash flows associated with the 

instruments fluctuating due to changes in market yields. RailCorp’s main interest rate risk relates primarily 

to borrowings and deposits on call with TCorp. 

The PPP maintenance facility finance lease recognised on RailCorp’s statement of financial position is not 

exposed to interest rate risk. Amounts payable under the leasing arrangement are fixed, based on the 

achievement of certain milestones and key performance indicators by Reliance Rail. The interest rate 

charged on the lease liability is that which is implicit within the lease and will not be impacted by market 

interest rate fluctuations. Refer Note 18.4. 

Investment 

RailCorp invests in the TCorp 11 am Call Deposit. Funds are held for operational rather than trading 

purposes. 

The TCorp 11am Call Deposit facility is designated at cost through the profit and loss. Therefore, any 

changes in price impacts on profit and loss (rather than comprehensive income). 

Debt 

RailCorp adopts a continuously diversified approach to managing its debt portfolio. Debt maturity is spread 

across the yield curve, comprising both short-term TCorp borrowing and long-term semi government 

bonds. A neutral benchmark measures the performance of the debt portfolio. 

RailCorp’s Treasury Management Policy requires a fixed/floating ratio where no more than 70% of the 

portfolio’s face value can be fixed rate debt or floating rate debt. Modified duration of the long-term debt 

must be between 2 and 6 years. The debt portfolio is managed through a restructuring facility offered by 

TCorp. Borrowings issued at variable rates expose RailCorp to cash flow risk. 

Exposure to interest rate risk at year end is set out below: 

PARENT Interest rate Principal amount 


% % $000 $000 



Cash on hand - - 6 513 6 694 

Cash at bank 3.42 4.65 8 170 3 572 

Deposits on Call –TCorp Investment 3.45 4.70 62 784 4 659 

Total Financial Assets 77 467 14 925 



Borrowings - 4.93 - (332 300) 

Finance Lease - - (13 663) (2 361) 

Between 1 and 5 years 

Borrowings 5.49 5.49 (80 017) (80 149) 

Finance lease - - (125 118) (47 842) 

Later than 5 years 

Borrowings 5.66 5.66 (44 922) (45 040) 

Finance Lease - - (349 209) (206 877) 

Total Financial Liabilities (612 929) (714 569) 


Net Exposure (535 462) (699 644) 

Interest rate not applicable to Finance Lease 


97



20.3.3 Interest rate risk (continued) 

Interest rate sensitivity analysis 

Exposure to interest rate risk arises primarily through RailCorp’s interest bearing liabilities. A change of +/- 

1% is used, consistent with current trends in interest rates, to measure RailCorp’s financial sensitivity to 

interest rate movements. RailCorp’s exposure to interest rate risk is set out below: 

Index 

Change in 

yield 

Impact on 

surplus 


Impact on 

surplus 



Comprehensive 

Income 2012 


Comprehensive 

Income 2011 

TCorp 

investments and 

bank deposits 

$000 $000 

$000 

$000 

-1% (708) (82) - - 

+1% 708 82 - - 

If interest rates had changed by 1% the TCorp investments bank deposits would have moved by 1% and 

affected RailCorp’s profit and loss by the following. 

Index 

Change in 

yield 

Impact on 

surplus 


Impact on 

surplus 



Comprehensive 

Income 2012 


Comprehensive 

Income 2011 

Borrowings 

$000 $000 

$000 

$000 

-1% 1 249 4 575 - - 

+1% (1 249) (4 575) - - 

If interest yields had changed by 1% the market value of RailCorp’s debt portfolio would have moved in 

accordance with the weighted average modified duration for the portfolio. 

20.4 Credit risk 

Credit risk arises where a debtor or RailCorp counterparty does not complete their obligations, resulting in 

financial risk to RailCorp. 

Credit risk can arise from financial assets of RailCorp, including cash and cash equivalents, derivative 

financial instruments, deposits with banks and TCorp, as well as credit exposure to customers, including 

outstanding receivables and committed transactions. RailCorp holds bank guarantees for significant 

customers as well as property bonds for some leased premises. RailCorp has not granted any financial 

guarantees. 

RailCorp’s credit risk policy is aimed at minimising the potential for counter party default. RailCorp uses the 

Standard & Poor’s rating system in assessing credit risk. 

Credit risk associated with RailCorp’s financial assets, other than receivables, is managed through the 

sound selection of counterparties and establishment of minimum credit rating standards. The Public 

Authorities (Financial Arrangements) Act 1987 requires RailCorp to transact all debt management and 

investment activities with TCorp, which has a AAA credit rating from Standard & Poor’s due to their 

financial arrangements and obligations being guaranteed by the NSW Government. 

RailCorp held $71.0m (2011: $8.2m) in cash at bank and investments at 30 June 2012. This was held with 

TCorp and Westpac Banking Corporation. 

Derivatives 

In relation to foreign exchange contracts and commodity swap transactions, RailCorp only transacts with 

counterparties with a Standard & Poor’s long-term credit rating of A+ or greater. RailCorp held $0.8m 

(2011: $4.7m) in derivative financial assets and $16.2m (2011: $16.6m) in derivative financial liabilities. 

98 




20.4 Credit risk (continued) 

Further, no counterparty may have more than 50% of RailCorp’s total contract value in regards to foreign 

currency and commodity transactions. 

RailCorp also holds “International Swap Dealers Association” Master Agreements with all counterparties 

which is an industry standard. 

Trade receivables 

The maximum credit risk exposure in relation to receivables is the carrying amount, less the allowance for 

impaired debts. Where necessary to support approval of a credit application for customers, security may 

need to be obtained in the form of an unconditional bank guarantee and/or security deposit. 

RailCorp is not obliged to extend credit. RailCorp is not materially exposed to concentrations of credit risk 

to a single trade debtor or group of debtors. 

Investments 

RailCorp held funds on deposit with TCorp at 30 June 2012 which has been rated as “AAA” by Standard 

and Poor’s. The deposits at balance date were earning an average interest rate of 3.45% (2011: 4.70%) 

while over the year the weighted average interest rate was 4.29% (2011: 4.62%) on a weighted average 

balance during the year of $8m (2011: $10m). 

20.5 Liquidity risk 

Liquidity risk refers to RailCorp being unable to meet its payment obligations when they fall due. RailCorp 

manages risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities and by 

continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial 

assets and liabilities. 

Current investment powers allow RailCorp to manage liquidity through TCorp’s facilities. The bank balance 

is managed daily to a minimum set-off balance with surplus funds being invested in the TCorp 11 am Call 

Deposit or Hour Glass Cash Facility. Shortfalls in working capital funding are managed through TCorp’s 

Come & Go Facility. RailCorp’s bank accounts are on an account set off arrangement so funds are 

aggregated to allow flexibility. 


Credit standby arrangements are shown at Note 5.3. 

During the current and prior years, there have been no defaults or breaches on any loans payable. No 

assets have been pledged as collateral. RailCorp exposure to liquidity risk is deemed insignificant based on 

prior period data and current assessment of risk. 

Liabilities are recognised for amounts due to be paid in the future for goods and services received, whether 

or not invoiced. If trade terms are not specified, payment is generally made no later than the end of the 

month following the month in which an invoice or a statement is received. 

The following table reflects the maturity band for all contractual obligations including the payment of 

principal and interest resulting from recognised financial liabilities at reporting date excluding the impact of 

netting. 


99



20.5 Liquidity risk (continued) 

PARENT 

30 June 2012 

Carrying Contract Less than 1 Between 1 Over 5 

Amount Cashflow year and 5 years Years 

$000 $000 $000 $000 $000 


Cash and cash 

equivalents 77 467 77 467 77 467 - - 

Trade and other 

receivables 141 809 141 809 107 040 4 886 29 883 

219 276 219 276 184 507 4 886 29 883 


Trade and other Payables (581 148) (581 148) (581 148) 

Borrowings (124 939) (155 659) (7 152) (96 587) (51 920) 

Finance lease liability (487 990) (1 430 855) (20 035) (157 741) (1 253 079) 

(1 194 077) (2 167 662) (608 335) (254 328) (1 304 999) 

Derivatives 

Forward exchange 

contracts outflow (91 576) (106 555) (86 574) (19 981) - 


contracts inflow - - - - - 

Commodity swap 



contracts inflow - - - - - 

(111 337) (126 686) (103 307) (23 379) - 

30 June 2011 


Cash and cash 

equivalents 14 925 14 925 14 925 - - 

Trade and other 

receivables 145 721 145 721 116 517 2 417 26 787 

160 646 160 646 131 442 2 417 26 787 


Trade and other payables (444 851) (444 851) (444 851) - - 

Borrowings (457 489) (501 206) (340 261) (106 385) (54 560) 

Finance lease liability (257 080) (798 679) (3 741) (64 516) ( 730 422) 

(1 159 420) (1 744 736) (788 853) (170 901) (784 982) 

Derivatives 


contracts outflow (124 636) (140 819) (96 385) (44 434) - 


contracts inflow 904 1 114 1 114 - - 




contracts inflow 1 212 905 905 - - 

(144 961) (156 825) (108 964) (47 861) - 

100 




20.6 Fair value compared to carrying amount 

The fair values of financial instrument assets and liabilities are determined as follows: 

• the fair value of financial instrument assets and liabilities with standard terms and conditions and 

traded in active liquid markets are determined with reference to quoted market prices; and 

• the fair value of other financial instrument assets and liabilities are determined in accordance with 

generally accepted pricing models based on discounted cash flow analysis. 

RailCorp considers that the carrying amount of financial instrument assets and liabilities recorded in the 

financial statements to be a fair approximation of their fair values, because of the short-term nature of the 

financial instruments and the expectation that they will be paid in full. 

The fair values of most of the contractual financial assets and liabilities are the same as the carrying 

amounts. 

RailCorp uses various methods for disclosing the fair value of financial instruments by valuation technique: 

• Level 1 - Derived from quoted market prices in active markets for identical assets/liabilities. Quoted 

market price represents the fair value determined based on the quoted prices on active markets as at 

the reporting date without any deduction of transaction costs. 

• Level 2 - Derived from inputs other than quoted prices that are observable directly or indirectly using 

valuation techniques with only observable market inputs and prices, commodity swap contracts and 

foreign exchange contracts. 

• Level 3 – Derived from valuations techniques that include inputs for asset/liabilities not based on 

observable market data. RailCorp currently does not have these financial instruments. 

Level 1 

$000 

Level 2 

$000 

Level 3 

$000 

Fair Value at 30 June 2012 


Foreign exchange contracts - 120 - 

Commodity swap contracts - 696 - 

TCorp investments - - 

Total financial assets - 816 - 



Foreign exchange contracts - 15 098 - 

Commodity swap contracts - 1 068 - 

Total financial liabilities - 16 166 - 

Fair Value at 30 June 2011 


Foreign exchange contracts - 271 - 

Commodity swap contracts - 4 464 - 

TCorp investments - - - 

Total financial assets - 4 735 - 


Foreign exchange contracts - 16 243 - 

Commodity swap contracts - 355 - 

Total financial liabilities - 16 598 - 


101


Note 21 Joint venture 

RailCorp has a participating 50% interest in the AK Car Joint Venture which operates an inspection railcar 

as a jointly controlled asset. The venture commenced on 1 February 2006. The aggregate amount of 

RailCorp’s assets employed in the joint venture at 30 June 2012 is $0.5m(2011: $0.6m). 

Note 22 Events occurring after reporting date 

RailCorp entered a lease on 5 August 2012 transferring the management and operation of the Sydney 

Metropolitan Freight Network to Australian Rail Track Corporation Limited until 2064. It will result in the derecognition 

by RailCorp of associated land and Infrastructure assets with a written down value of 

approximately $150m in financial year 2012-13. 

(End of audited financial statements) 

102 




103

104 


Enterprise risk 

management 

The effective management of risk 

remains central to the achievement 

of RailCorp’s Strategic Objectives 

and to efficient management of 

RailCorp, and has continued to 

mature during the year. The 

organisation’s approach to risk 

management remains focused on the 

proactive identification, assessment 

and ownership of all business 

risks, and the implementation 

of treatments to control them, 

mitigating negative impacts and 

locking in opportunities. 

During the course of 2011-12 the 

RailCorp Strategic Risk Register 

has undergone scheduled 

quarterly reviews, the Audit and 

Risk Committee participated in 

a strategic risk workshop, the 

Enterprise Risk Management risk 

ranking criteria were reviewed and 

simplified, and the Enterprise Risk 

Working Group was established to 

ensure effective communication 

of risk management best practice, 

initiatives and information across 

the organisation. 

The continued provision of formal 

ERM training is helping the 

organisation to build its maturity 

and capability in risk management. 

This advancing maturity is reflected 

in the improved alignment between 

the enterprise risk profile and the 

RailCorp assurance framework, 

particularly in internal audit 

activities. 

The Risk Management Information 

System, RailCorp’s data, analysis 

and reporting tool for risk, has 

been upgraded for future wider 

deployment across the organisation 

as appropriate. 

Internal audit and risk management 

statement 

For the 2011–2012 financial year for Rail Corporation 


I, Rob Mason, am of the opinion that Rail Corporation 

New South Wales has internal audit and risk 

management processes in place that are, in all material respects, 

compliant with the core requirements set out 

in Treasury Circular NSW TC 09/08 Internal Audit and 

Risk Management Policy. 

I, Rob Mason, am of the opinion that the Audit and 

Risk Committee for Rail Corporation New South Wales 

is constituted and operates in accordance with the 

independence and governance requirements of Treasury 

Circular NSW TC 09/08. The Chair and Members of the Audit 

and Risk Committee are: 

• G. Fletcher – Independent Chair (three-year term 

of appointment with effect from 1 July 2010) 

• E. Crouch – Independent Member (three-year term 

of appointment with effect from 1 July 2010) 

• B. Blood – Independent Member (three-year term 

of appointment with effect from 1 July 2010). 

These processes provide a level of assurance that enables 

the senior management of Rail Corporation New South Wales 

to understand, manage and satisfactorily control 

risk exposures. 

Rob Mason 


Date: 31 October 2012 


To address the management of 

risks specific to major projects, the 

successful practice of embedding or 

providing risk specialist support to 

these projects has continued. 


105

106 


Appendices 

Appendix 1 

Appendix 2 

Appendix 3 

Appendix 4 

Appendix 5 

Appendix 6 

Appendix 7 

Appendix 8 

Appendix 9 

Appendix 10 

Appendix 11 

Appendix 12 

About RailCorp 

Management structure 

Changes in Acts and subordinate legislation 

Work Health and Safety 

Privacy and Personal Information Protection 

Act 1998 

Human resources 

Equal employment opportunity 

Accessibility/disability plans 

Multicultural Policies and Services Plan 

(formerly EAPS) – Community Relations 

Consumer response 

Agreements within the Community Relations 

Commission 

Performance and numbers of executive officers 

Appendix 13 

Appendix 14 

Government Information (Public Access) 

Act 2009 

Implementation of IPART fare determinations 

Appendices 

Appendix 15 

Appendix 16 

Appendix 17 

Appendix 18 

Appendix 19 

Appendix 20 

Appendix 21 

Appendix 22 

Appendix 23 

Appendix 24 

Appendix 25 

Investment management performance 

Liability management performance 

Annual Report 2011-12 production costs 

Consultants 

Overseas travel 

Land values and land disposals 

Funds granted to non-government agencies 

Credit card certification 

Research and development 

Major works in progress 

Payment of accounts 

Appendix 26 

Controlled entity and subsidary disclosure 

Appendices 

107

Appendix 1: About RailCorp 

RailCorp provides rail services 

under the requirements of the 

Transport Administration Act 1988. 

The principal objectives of RailCorp 

under that Act are to: 

• Deliver safe and reliable railway 

passenger services in NSW in an 

efficient, effective and financially 

responsible manner 

• Ensure that the part of the NSW 

rail network vested in or owned 

by RailCorp enables safe and 

reliable railway passenger and 

freight services in an efficient, 

effective and financially 

responsible manner. 

The Act also requires RailCorp to: 

• Maintain reasonable priority and 

certainty of access for railway 

passenger services 

• Promote and facilitate access to 

the part of the NSW rail network 

vested in or held by RailCorp 

• Operate a successful business 

that performs at least as 

efficiently as any comparable 

business and maximises the net 

worth of the State’s investment in 

the Corporation 

• Exhibit a sense of social 

responsibility by taking into 

consideration the interests of the 

community in which it operates 

• Conduct operations in compliance 

with the principles of ecologically 

sustainable development 

contained in Section 6(2) of the 

Protection of the Environment 

Administration Act 1991 

• Exhibit a sense of responsibility 

towards regional development 

and decentralisation in the way in 

which it serves the community. 

Nature and scope of 

operations 

RailCorp has three primary functions 

conferred by Part 2 of the Transport 

Administration Act 1988. These 

functions are further governed 

by the Rail Safety Act 2008. They 

are also subject to the Passenger 

Transport Act 1990, which provides 

that the terms and conditions under 

which they are carried out are to 

be set out in a rail services contract 

with the Director General of the 

Department of Transport. 

The three primary functions are: 

Passenger rail services 

RailCorp is to operate passenger 

rail services and it has the ability to 

establish new, alter or discontinue 

services as required. 

Metropolitan, regional (Newcastle 

and Hunter areas) and intercity 

services (South Coast, Southern 

Highlands, Blue Mountains and 

Central Coast) are operated through 

the CityRail network. CountryLink 

provides affordable long-distance 

passenger train and coach services 

to regional NSW communities and 

the four capital cities in NSW, ACT, 

Queensland and Victoria. 

CountryLink also manages all NSW 

country stations, trains, onboard 

staff, reservations, sales and 

marketing. The majority of nonmetropolitan 

rail infrastructure, 

excluding stations and rolling stock, 

is provided by the Australian Rail 

Track Corporation. 

Rail infrastructure functions 

RailCorp is to hold, manage, 

maintain and establish rail 

infrastructure facilities owned by or 

vested in RailCorp on behalf of the 

State. Rail infrastructure facilities 

include stations, railway track, 

associated track structures, over 

track structures, cuttings, drainage 

works, track support earthworks 

and fences, tunnels, bridges, level 

crossings, service roads, signalling 

systems, train control systems, 

communication systems, overhead 

power supply systems, power 

and communication cables, and 

associated works, buildings, plant, 

machinery and equipment. 

Metropolitan rail area access 

functions 

RailCorp is to provide and promote 

access to its rail network, primarily to 

support rail freight services by thirdparty 

operators. RailCorp currently 

provides 19 operators with access to 

the metropolitan network, which also 

includes heritage and long-distance 

passenger operations. 

108 


Appendix 2: Management structure 

In accordance with the Transport 

Administration Act 1988, the affairs 

• Monitor compliance with 

governance systems and evaluate 

Safety Committee 

of RailCorp are managed and 

the effectiveness of those systems 

The primary objective of the Safety 

controlled by the Chief Executive, 

subject to direction from the 

Director General of Transport for 

New South Wales. 

The RailCorp Executive supports 

the Chief Executive in the dayto-day 

running of RailCorp and in 

ensuring effective governance of 

the organisation. The Executive 

has collective responsibility for 

functions related to organisational 

performance and strategy. 

A number of Executive Committees 

meet formally at least once a month 

and the Executive meets every 

week, or as required. 

Executive Management 

Committee 

The primary objective of the 

Executive Management Committee 

is to provide the Chief Executive 

and members of the Executive with 

advice and direction in relation 

to the strategic development 

and implementation of RailCorp’s 

objectives to ensure effective 

corporate governance. 

In discharging its responsibilities, 

the Committee will: 

• Provide a forum for the 

development of organisational/ 

business strategy 

• Consider strategic responses to 

performance issues and changes 

in circumstances that impact 

delivery of the corporate plan 

• Provide a forum for the discussion 

and evaluation of risks and issues 

that have significant impacts on 

RailCorp’s operations 

• Support the Chief Executive in the 

provision of advice to stakeholders 

• Provide alignment between 

the roles and responsibilities 

in relation to RailCorp’s 

organisational/business plans 

(including objectives, strategies, 

programs and initiatives). 

Finance and Delegation 

Committee 


Finance and Delegations Committee 

is to assist the Chief Executive in 

the exercise of his delegation of 

authority and to promote good 

governance practices. 

In discharging its responsibilities the 

Committee will: 

• Make recommendations on items 

above the sub-delegation limits 

to group heads for approval 

or commitment by the Chief 

Committee is to assist the Chief 

Executive in discharging RailCorp’s 

objective for the safety of railway 

passenger services (CityRail & 

CountryLink) and the part of the 

rail network vested in or owned by 

RailCorp, and of the passengers, 

employees, contractors, third 

party operators of non-passenger 

operations and the public who 

work on and use the network. 

The Committee includes an 

independent member appointed by 

the Chief Executive. 

In discharging its charter the 

Committee will: 

• Review and monitor the strategic 

direction of safety at RailCorp 

• Monitor and review the 

effectiveness of safety policies, 

systems and programs which 

are designed to meet legislative 

responsibilities 

• Promote a proactive safety 

culture at RailCorp 

• Monitor and review the 

performance of key programs 

which identify and manage safety 

risks across operations 

• Monitor and review key safety 

related issues arising from the 

RailCorp Executive Management 

Committee 

Appendices 

• Review progress on the delivery 

of organisational/business plans 

Executive 

• Make recommendations on 

• Provide advice to the Chief 

Executive on key safety issues 

• Review financial and operational 

performance against 

organisational/business plans 

• Identify strategic opportunities 

for improved performance 

• Monitor policy, systems and 

programs across the organisation 

items referred by the Executive 

Management Committee for 

approval or commitment by the 


• Make recommendations on items 

referred by the Chief Executive for 

approval or commitment by the 

Chief Executive. 

• Monitor and review performance 

through reporting relating to 

the safety of infrastructure, train 

operations, counter-terrorism 

and WHS 

• Receive assurance that issues 

arising from relevant safety audit 

Appendices 

109

and investigation reports are 

being actioned 

• Take into account safety objectives 

relating to RailCorp as it sees fit. 

Audit and Risk Committee 

The Chief Executive has established 

the Audit and Risk Committee in 

compliance with Treasury Circular 

NSW TC 09/08 August 2009. 

The Committee includes three 

independent members appointed 

by the Chief Executive. 

The objective of the Committee 

is to provide independent 

assistance to the Chief Executive 

by overseeing and monitoring 

RailCorp’s governance, risk and 

control frameworks, and its external 

accountability requirements. 

The Chief Executive authorises the 

Committee, within the scope of its 

role and responsibilities, to: 

• Obtain any information it 

needs from any employee and/ 

or external party (subject to 

their legal obligation to protect 

information) 

• Discuss any matters with the 

external auditor or other external 

parties (subject to confidentiality 

considerations) 

• Request the attendance of any 

employee, including the Chief 

Executive, at committee meetings 

• Obtain external legal or other 

professional advice, as considered 

necessary to meet its 

responsibilities, at RailCorp’s 

expense. 

Executive Risk Management 

Committee 


Executive Risk Management 

Committee is to oversee the 

strategic development and ongoing 

implementation of RailCorp’s 

enterprise risk management 

framework for all categories of risk. 

In discharging it responsibilities 

the Committee will perform the 

following duties: 

• Provide strategic oversight to 

an enterprise wide approach 

to the management of risk, 

including approval of principles, 

strategies and processes for the 

management of risk 

• Evaluate significant enterprise 

risks that threaten or may 

threaten the achievement of 

RailCorp’s objectives 

• Provide direction on appropriate 

risk management strategies and 

clear lines of accountability for 

the management of risks 

• Monitor the effectiveness of controls 

and/or mitigation strategies to 

manage significant risks 

• Approve principles, policies, 

strategies and processes for the 

management of risk. 

Appendix 3: Changes in Acts and subordinate legislation 

Work Health and Safety Act 

2011 (NSW) 

Date of commencement: 

1 January 2012 

The object of this Act is to secure 

the health, safety and welfare of 

persons at work and to repeal the 

Occupational Health and Safety Act 

2000 (NSW). The Act removes 

the reverse onus of proof in work 

health and safety prosecutions; 

replaces the provision that deemed 

directors and managers of a 

corporation to be guilty of offences 

committed by the corporation, 

with a duty that officers of the 

corporation should exercise due 

diligence to ensure compliance by 

the corporation with health, safety 

and welfare duties; and removes the 

right of unions to bring proceedings 

for an offence under the repealed 

Occupational Health and Safety Act 

2000 (NSW). 

Section 17 of the Act provides for 

a duty imposed on a person to 

ensure health and safety requires 

the person: 

(a) to eliminate risks to health 

and safety, so far as is reasonably 

practicable, and 

(b) if it is not reasonably practicable 

to eliminate risks to health and 

safety, to minimise those risks so far 

as is reasonably practicable. 

Section 18 provides that in 

determining what is reasonably 

practicable in relation to a duty to 

ensure health and safety, means 

that which is, or was at a particular 

time, reasonably able to be done 

in relation to ensuring health and 

safety, taking into account and 

weighing up all relevant matters 

including: 

(a) the likelihood of the hazard or 

the risk concerned occurring, and 

(b) the degree of harm that might 

result from the hazard or the risk, 

and 

110 


(c) what the person concerned 

(b) the provision and maintenance 

Made under the Work Health 

knows, or ought reasonably to 

of safe plant and structures, and 

and Safety Act 2011, the 

know, about: 

(i) the hazard or the risk, and 

(c) the provision and maintenance 

of safe systems of work, and 

regulations cover matters such as 

representation and participation, 

general risk and workplace 

(ii) ways of eliminating or minimising 

the risk, and 

(d) the availability and suitability of 

(d) the safe use, handling, and 

storage of plant, structures and 

substances, and 

management, hazardous work, plant 

and structures, construction work, 

hazardous chemicals, asbestos, 

major hazard facilities and mines. 

ways to eliminate or minimise the 

(e) the provision of adequate 

risk, and 

(e) after assessing the extent of 

the risk and the available ways of 

eliminating or minimising the risk, the 

cost associated with available ways 

of eliminating or minimising the risk, 

including whether the cost is grossly 

disproportionate to the risk. 

Section 19 sets out the primary 

duty of care in relation to 

persons conducting a business 

or undertaking. By subsection (1) 

those persons must ensure so far as 

is reasonably practicable, the health 

and safety of: 

facilities for the welfare at work of 

workers in carrying out work for 

the business or undertaking, 

including ensuring access to those 

facilities, and 

(f) the provision of any information, 

training, instruction or supervision 

that is necessary to protect all 

persons from risks to their health 

and safety arising from work carried 

out as part of the conduct of the 

business or undertaking, and 

(g) that the health of workers and 

the conditions at the workplace 

are monitored for the purpose 

Occupational Health and 

Safety Act 2000 (NSW) 

Date of Repeal: 1 January 2012 

This Act was repealed by section 

276C of the Work Health and Safety 

Act 2011 (NSW) with effect from 1 

January 2012. 

The Work Health and Safety Act 

2011, along with the Work Health 

and Safety Regulation 2011 (NSW), 

both commenced on 1 January 2012 

to secure the health, safety and 

welfare of persons at work. 

(a) workers engaged, or caused to 

be engaged by the person, and 

(b) workers whose activities in 

carrying out work are influenced or 

directed by the person, 

while the workers are at work in the 

business or undertaking. 

By subsection (2) a person 

conducting a business or 

undertaking must ensure, so far as 

is reasonably practicable, that the 

health and safety of other persons 

is not put at risk from work carried 

out as part of the conduct of the 

business or undertaking. 

of preventing illness or injury of 

workers arising from the conduct of 

the business or undertaking. 

Section 27 provides that if a 

person conducting a business or 

undertaking has a duty or obligation 

under the Act, an officer of the 

person conducting the business 

or undertaking must exercise 

due diligence to ensure that the 

person conducting the business 

or undertaking complies with 

that duty or obligation. Maximum 

penalty: is that fixed for an officer of 

a person conducting a business or 

undertaking for that offence. 

Occupational Health and 

Safety Regulation 2001 

(NSW) 

Date of Repeal: 1 January 2012 

This Regulation was repealed by 

section 276C of the Work Health 

and Safety Act 2011 (NSW) with 

effect from 1 January 2012. 

The Work Health and Safety Act 

2011, along with the Work Health 

and Safety Regulation 2011 (NSW), 

both commenced on 1 January 2012 

to secure the health, safety and 

welfare of persons at work. 

Appendices 

By subsection (3) without 

limiting subsections (1) and (2), a 

person conducting a business or 

Work Health and Safety 

Regulation 2011 (NSW) 

undertaking must ensure, so far as 

is reasonably practicable: 

Date of Commencement: 

1 January 2012 

(a) the provision and maintenance 

of a work environment without risks 

to health and safety, and 

This Regulation commenced 

(except for clause 164) on 1 January 

2012 to secure the health, safety 

and welfare of persons at work. 

Appendices 

111

Transport Legislation 

Amendment Act 2011 (NSW) 

Dates of Commencement: 1 

November 2011; 31 March 2012; 1 

July 2012 

The object of this Act was to amend 

the Transport Administration Act 

1988 (NSW) to establish Transport 

for NSW and the Transport Service 

and to make further provision 

with respect to the administration 

of public transport in New 

South Wales with respect to the 

administration of the transport 

services provided to the people of 

New South Wales. 

By this Act a new section 2B 

was inserted into the Transport 

Administration Act 1988 (NSW) 

which provides: 

(1) Public transport agencies are 

to exercise their functions in a 

manner that promotes the following 

objectives, which are the common 

objectives of public transport 

agencies: 

(a) Customer focus 

To put the customer first and design 

the transport system around the 

needs and expectations of the 

customer. 

(b) Economic development 

To enable the transport system to 

support the economic development 

of the State (with a focus on freight 

transport systems). 

(c) Planning and investment 

To ensure that good planning 

informs investment strategies. 

(d) Coherence and integration 

To promote coherence and 

integration across all transport 

modes and all stages of decision 

making. 

(e) Performance and delivery 

To focus on performance and 

service delivery, based on a strong 

purchaser-provider model with clear 

accountabilities for outcomes. 

(f) Efficiency 

To achieve greater efficiency: 

(i) in the delivery of transport 

infrastructure projects, and 

(ii) through improved coordination 

of freight, maritime and ports 

operations, and their integration 

into the transport system, and 

(iii) by eliminating duplication of 

functions and resources, and 

(iv) by outsourcing the delivery of 

non-core services. 

(g) Environmental sustainability 

To promote the delivery of transport 

services in an environmentally 

sustainable manner. 

(h) Social benefits 

To contribute to the delivery of 

social benefits for customers, 

including greater inclusiveness, 

accessibility and quality of life. 

(i) Safety 

To provide safe transport services in 

accordance with a safety regulatory 

framework. 

(2) Public transport agencies are 

to determine their service delivery 

priorities having regard to the 

Director General’s expectations 

for service delivery established 

by a Statement of Expectations 

issued annually to public transport 

agencies by the Director General. 

Environmental Planning and 

Assessment Amendment 

(North West Rail Link) 

Regulation 2012 

Date of commencement: 

13 March 2012 

The object of this Regulation is 

to amend Schedule 6A to the 

Environmental Planning and 

Assessment Act 1979 (NSW) 

to make additional savings and 

transitional provisions relating to the 

North West Rail Link development, 

consequent on the declaration 

of that development as State 

Significant Infrastructure. The 

amendment enables existing and 

new requests for modifications to 

the deemed approval for the staged 

infrastructure application relating 

to that project to be made and 

dealt with. 



Appendix 4: Work, Health and Safety 

RailCorp made extensive 

preparations in order to ensure 

its readiness for effective 

implementation of the new Work 

Health & Safety Act 2011 (NSW) on 

1 January 2012. The organisation’s 

Work Health and Safety (WHS) 

responsibilities are managed through 

our Safety Management System. 

WorkCover conducted its regular 

three-yearly audit of RailCorp 

in August 2011. The audit found 

that the two Safety Management 

System elements audited – risk 

management and process control 

– were operating at an acceptable 

performance level under the 

National OHS Self Insurers Audit 

Tool. The audit team was of the 

opinion that the organisation’s 

system performance was at a 

level expected of a self-insurer, 

and recommended that RailCorp 

continue on the standard triennial 

audit cycle. The organisation was 

granted a further three-year licence 

as a self-insurer under the Workers 

Compensation Act 1987 (NSW). 

More than 70 WHS committees 

are constituted across the 

organisation’s spread of workplaces, 

overseeing safety issues on a 

location-specific basis. Training 

is provided for WHS committee 

chairs, who are also invited to an 

annual forum. 

Workers compensation claims are 

managed through the Workers 

Compensation Services Division. 

Data extracted on 1 August 2012 for 

the 2011-12 year indicates as follows: 

• 1222 injury claims were accepted 

by RailCorp 

• 135 of those claims related to 

journey injuries 

• 560 injuries were lost time injuries 

• the average claim cost was $9905 

RailCorp was subject to one 

WorkCover investigation during the 

2011-2012 financial year. 

The matter involved an incident that 

occurred on 19 February 2012 when 

a contractor who was carrying out 

work for Novo Rail on the Lidcombe 

to Granville Corridor Upgrade 

Project fell off a hi-rail excavator and 

suffered injuries. RailCorp was the 

principal contractor for the upgrade 

project. This matter is ongoing. 

RailCorp was not the subject of a 

WorkCover prosecution during the 

2011-12 year. 

RailCorp runs comprehensive 

health and wellness programs for 

its employees throughout the year, 

details of which are provided in 

‘Secton 02 Operational Performance 

– People’ of this report. 

Appendix 5: Privacy and Personal Information Protection Act 1998 

RailCorp did not receive any 

applications under Part 5 of the 

Privacy and Personal Information 

During the period, a new RailCorp 

Personal and Health Information 

Procedure was implemented for 

held for employees and members of 

the public. This Procedure supports 

the implementation of RailCorp’s 

Appendices 

Protection Act 1998 during the 

collection, protection, storage, use, 

Privacy Management Plan. 

2011-12 financial year. 

amendment and secure disposal 

of personal and health information 

Appendices 

113

Appendix 6: Human resources 

Exceptional movements in 

wages, salaries or allowances 

• April 2012: 3.5 per cent salary 

increase for all employees 

covered by the RailCorp 

Enterprise Agreement 2010 

• From 1 July 2011, the average 

increase for RailCorp managers 

on contract was 3.24 per cent, 

subject to achieving specific 

performance agreement targets.h 

Headcount as at 30 June 2012 

Industrial relations legislation, 

awards and agreements 

Terms and conditions of 

employment of RailCorp’s 

employees are governed by: 

• Executive Contracts 

• Fair Work Act 2009 

• Rail Industry Award 2010 

• RailCorp Enterprise Agreement 

2010 (expires 31 March 2014) 

RailCorp Enterprise 

Agreement 2010 

The RailCorp Enterprise Agreement 

2010 identifies a range of reform 

initiatives that will deliver employee 

related cost savings. These reforms 

are progressively being delivered 

during the life of this Agreement. 

Personnel policies and 

practices 

The following new HR procedures 

became effective in 2011-2012: 

1. Child protection in the workplace 

Category groups 2009 2010 2011 2012 

Train operations 625 616 633 643 

Train crew 3235 3377 3467 3436 

Station staff 2636 2358 2435 2442 

Presentation services 664 898 853 804 

Security 576 542 580 497 

Asset management 

- Trades 1 2475 2509 2470 2779 

- Engineering 2 1072 1255 1368 1424 

Corporate 3 3097 3433 3465 2950 

Other/unattached 4 192 

Total 14,380 14,988 15,271 15,167 5 

1. Includes 292 apprentices previously reported in corporate. 

2. Includes 187 Engineering graduates/undergraduates. 

3. Includes Safety and Environment, and graduates, interns and cadets 

(non-engineering). 

4. Includes 171 unattached employees. 

5. Excludes employees identified as contractors. 

2. Critical incident support 

3. Employee assistance program 

4. Flexible work practices 

5. Graduate programh 

6. Personal and health information 

7. Transfers 

8. Work experience 

9. Revised recruitment, selection 

and appointment procedure to 

include temporary vacancies 

10. Revised public interest 

disclosures and reports of other 

serious misconduct procedure 

to reflect the Public Interest 

Disclosures Act 2010 

11. Revised Code of Conduct to 

reflect the changes to the public 

interest disclosures and reports 

of other serious misconduct 

procedure and the secondary 

employment and emergency 

services work procedure. 

114 


Appendix 7: Equal Employment Opportunity (EEO) 

Trends in the representation of EEO groups 1 

EEO group Benchmark or target 2009 2010 2011 2012 

Women 50.0% 18.4% 18.7% 19.2% 19.5% 

Aboriginal and Torres Strait Islander people 2.6% 3 2.2% 2.2% 2.1% 1.9% 

People whose first language is not English 19.0% 27.6% 27.6% 27.9% 28.1% 

People with a disability N/A 4 6.3% 6.1% 5.8% 5.6% 

People with a disability requiring 

1.1% (2011); 1.3% (2012) 

work-related adjustment 5 1.5% (2013) 

2.1% 1.9% 1.8% 1.7% 

Trends in the distribution of EEO groups 6 

EEO group Benchmark or target 2009 2010 2011 2012 

Women 100 94 96 94 95 

Aboriginal and Torres Strait Islander people 100 84 82 82 83 

People whose first language is not English 100 96 98 99 100 

People with a disability 100 100 99 99 100 

People with a disability requiring work-related 

adjustment 

100 99 98 98 98 

1. Staff numbers are as at 30 June 2012. 

2. Excludes casual staff. 

3. Minimum target by 2015. 

4. Percentage employment levels are reported but a benchmark level has not been set. 

5. Minimum annual incremental target. 

6. A distribution index of 100 indicates that the centre of distribution of the EEO group across salary levels is equivalent to that of 

other staff. Values less than 100 mean that the EEO group tends to be more concentrated at lower salary levels than is the case 

for other staff. The more pronounced this tendency is, the lower the index will be. An index more than 

100 indicates that the EEO group is less concentrated at the lower salary levels. 

7. Excludes casual staff. 

8. Data about EEO groups (excluding women) are estimates based on responses received from employees who completed an EEO 

questionnaire. As at the time of reporting 49.86% of employees completed an EEO Survey questionnaire. 

Appendices 

Appendices 

115

Appendix 8: Accessibility/disability plans 

More than $770 million will be 

spent from 2011-12 to 2014-15 

on a Transport Access Program 

developed by Transport for NSW. 

The program is to deliver accessible, 

modern, secure and integrated 

transport infrastructure where it is 

needed most. This includes station 

upgrades, better interchanges, 

ferry wharf upgrades and new or 

upgraded commuter car parks. 

In April 2012, the NSW Government 

allocated more than $100 

million in the first round to fund 

improvements across the rail, bus 

and ferry networks at 35 city and 

regional locations. 

In May 2012, the government 

announced the allocation of $170 

million from Transport Access 

Program funds to build nine new 

commuter car parks to provide 

more than 1200 additional car 

spaces across the CityRail network. 

Transport for NSW has begun 

accessibility planning approval, land 

acquisition, design development 

and commercial processes, 

including procurement, for these 

initiatives. 

The program is to provide: 

• Stations accessible to the 

disabled, ageing and parents with 

prams 

• Modern buildings and facilities for 

all transport modes that meet the 

needs of a growing population 

• Modern interchanges that support 

an integrated network and allow 

seamless transfers between all 

transport modes 

• Greater safety, including extra 

lighting, help points, fences 

and security for car parks and 

interchanges, stations, bus stops 

and wharves 

• Improved signage so customers 

can more easily use public 

transport and transfer between 

modes. 

RailCorp has rolled out a Disability 

Awareness training program to 

equip the frontline staff with the 

required knowledge and skills to 

be able to understand the needs of 

customers with different disabilities 

and provide excellent customer 

service to meet their needs. 

Through the course, participants 

gain an understanding of RailCorp’s 

obligations as an organisation as 

well as their own obligations under 

the Disability Discrimination Act. 

They learn to identify the needs 

of customers with disabilities, the 

potential barriers to meeting these 

needs and strategies to overcome 

those barriers. Through practical 

activities and meeting with a guest 

speaker from one of the Disability 

sectors they begin to empathise 

with these customers and develop 

the desire to provide the best 

possible assistance. 

The training runs five days per week 

and is attended by 36 participants 

each day. From September 2011, 

about 4000 station staff and train 

crew have progressively been 

rostered to attend. By end of 

June 2012 approximately 83 per 

cent of the targeted employees 

had attended the training and the 

training program is on target. 

116 


Appendix 9: Multicultural Policies and Services Plan (formerly EAPS) 

– Community Relations 

In 2011-12, RailCorp updated the 

Multicultural Policies and Services 

Plan that was first prepared in 

2010-11. This is a legislative 

requirement under the Community 

Relations Commission and Principles 

of Multiculturalism Act 2000. 

This plan contains all current 

multicultural programs and activities 

conducted within RailCorp. It also 

proposes future activities which, 

if undertaken, will ensure that 

RailCorp is effectively contributing 

to furthering the principles of 

multiculturalism within NSW. 

The Multicultural Plan was 

developed in line with the 

Multicultural Planning Framework 

provided by the Community 

Relations Commission of NSW. 

The plan contains a set of 

actions, performance measures 

and outcomes for each activity, 

ensuring that it acts as a planning, 

performance evaluation and 

benchmarking tool. 

Multicultural plan 

Culturally and Linguistically Diverse 

areas were identified in the CityRail 

and CountryLink networks and 

an action plan developed for 

future multicultural activities and 

outcomes for these areas. 

Improved consultation 

RailCorp has been consistently 

liaising with the Community Relations 

Commission of NSW by requesting 

advice and feedback on the 

development of the Multicultural Plan. 

Community language 

allowance scheme 

A 12-month pilot of the Community 

Language Allowance Scheme 

(CLAS) was launched in December 

2011. The initiative encourages staff 

to provide on-the-spot assistance to 

customers in their own language. 

Marketing and promotions 

The CityRail website contains 

information in 12 languages, 

selected to reach commuters as 

well as tourists and international 

students: Arabic, Simplified and 

Traditional Chinese, Korean, Spanish, 

Japanese, Vietnamese, German, 

Thai, Nepalese, French 

and Burmese. 

Communications 

RailCorp continued to support the 

131450 translating and interpreting 

service, assisting culturally and 

linguistically diverse groups 

to receive service and other 

information in their own languages. 

Letters used for the Digital Train 

Radio System (DTRS) project were 

translated into Arabic, Chinese 

and Greek to assist culturally and 

linguistically diverse groups in the 

Bankstown area. 

Education 

In October 2011, RailCorp assisted 

the Illawarra Multicultural Services 

and Illawarra Health Services to 

organise a program to educate 

refugees about how to travel on the 

network safely and effectively. 

Appendices 

Appendices 

117

Appendix 10: Consumer response 

Complaint issues logged in 2011-12 

showed an increase from 26,632 in 

2010-11 to 29,219 issues for the year. 

This is an increase of 9.71 per cent on 

the previous financial year’s totals. 

These increases were distributed 

across the majority of KPI complaint 

categories. The only categories 

showing a decrease in complaints 

were Environment and Timetables. 

The KPI category Service, dealing 

with levels of comfort and 

convenience experienced by our 

customers, was the greatest source 

of customer dissatisfaction. This 

KPI rose by nearly 9 per cent on 

the previous financial year’s totals, 

from 4926 to 5346. On-board 

temperatures were the biggest 

single cause of complaint in this 

category, but numbers actually 

fell in the last financial year. The 

unseasonably hot temperatures of 

the previous summer did not recur 

in 2011-12 and complaints about 

onboard temperatures experienced 

an overall drop for the year from 

1247 to 1092. 

The progressive replacement of 

non-air conditioned rolling stock will 

no doubt go some way to alleviating 

this cause of complaint, but our 

passengers are still demanding 

immediate solutions to the 

problems of onboard comfort. 

Complaints about replacement 

bus services during periods of 

trackwork continued to contribute 

to the increase in complaints for the 

KPI category Service. Trackwork 

bus complaints in this KPI rose from 

542 to 615 in 2011-12, an increase 

of over 13 per cent on the previous 

year’s total. 

A total of 492 complaints were 

logged on the issue of unscheduled 

changes to train services, mostly 

complaints of early departures. This 

was an increase of 12.3 per cent 

on the previous year’s total of 438 

complaints for this symptom. 

The feedback channel Web 

Lodgement continues to increase 

in importance. The total number of 

Ticketing was again the next-highest 

category, with feedback on online 

ticketing (889 complaints, up from 

complaints logged via web channels 

rose by 19.95 per cent, from 9287 in 

2010-11 to 11,140 in 2011-12. 

313 the previous year) contributing 

to the increase in this KPI from 3585 

in 2010-11 to 4179 in 2011-12. Most of 

the online ticketing feedback relates 

to difficulties ordering, exchanging 

or registering tickets via the website. 

For the first time, the number of 

On-Time Running (OTR) complaints 

logged via the CityRail and 131500 

websites, or via other email 

channels, eclipsed the number 

logged via phone channels; 2017 

On-Time Running showed an 

OTR complaints were logged via 

increase in complaint issues from 

web channels in 2011-12, up by 26.9 

3330 in 2010-11 to 3924 in 2011-12. 

per cent from 2010-11’s total of 1589. 

This is an increase of nearly 18 per 

In comparison, the number of OTR 

cent on the previous year’s total. 

issues logged last year via phone 

A number of critical operational 

channels was 1741. 

incidents on the CityRail network 

caused spikes in complaints which 

contributed to this rise. 

Compliments showed a welcome 

increase on 2010-11’s totals, 

from 2290 to 3026 issues logged, 

Complaints logged under the 

KPI Staff was the fourth-highest 

up by 32.1 per cent on the previous 

year’s figures. 

category, but the increase was 

minimal, from 3215 issues in 2010-11 

to 3252 issues in 2011-12. 

Complaints by KPI and customer type 2011-12 

KPI CityRail CountryLink Infrastructure Total 

Claim 141 24 0 165 

Cleanliness 1571 61 288 1920 

Environment 208 4 1451 1663 

Facilities 1766 60 136 1962 

Information 2345 253 17 2615 

Internal Matters 171 15 46 232 

OTR 3605 308 11 3924 

Safety 1215 96 613 1924 

Security 1358 115 17 1490 

Service 4553 707 86 5346 

Staff 2720 437 95 3252 

Ticketing 3214 965 0 4179 

Timetable 502 45 0 547 

Total 23,369 3090 2760 29,219 

118 


All issues received 

Case source 2010-11 2011-12 

Phone 131500 26,637 30,321 

Web lodgement 15,600 18,389 

Ministerial 1073 1394 

Letters 1235 1135 

Office of Environment and Heritage email 194 117 

Minister's office 275 56 

Other 31 17 

NSW ombudsman 4 8 

Total 45,049 51,437 

All complaint issues received 


Phone 131500 15,309 16,233 

Web lodgement 9287 11,140 


Letters 645 544 

OEH email 191 116 


Other 20 8 

NSW ombudsman 3 7 

Total 26,632 29,219 

Appendices 

All OTR complaint issues received 


Web lodgement 1589 2017 

Phone 131500 1612 1741 


Letters 40 42 


Total 3330 3924 

NB - this is the first year that OTR complaints logged via web channels have exceeded those logged by phone. 

Appendices 

119

Appendix 11: Agreements within the Community Relations Commission 

RailCorp’s Community Relations 

Unit aims to build and grow 

sustainable partnerships and 

relationships with community 

groups. These ensure that RailCorp 

is able to conduct activities that are 

mutually beneficial for both itself 

and the community. 

During 2011-12 the Community 

Relations Unit engaged in a number 

of activities to effectively develop 

the organisation’s relationships with 

key community stakeholders. Some 

of the highlights are outlined below. 

Developing relationships 

with disabled and mobility 

impaired groups 

Consultations were held with six 

peak disability groups within NSW 

to determine their specific needs 

and issues regarding the use of 

public transport and the provision 

of information about services. This 

feedback was then used to update 

the CityRail boarding assistance 

brochure. 

The unit also conducted a disability 

forum attended by more than 20 

representatives of 14 peak groups. 

This forum continued the discussion 

of ways in which information could 

be better provided and included a 

familiarity session on board the then 

new Waratah train. 

Developing partnerships with 

charities 

The Community Relations Unit 

played a key role in improving 

RailCorp’s social responsibility 

through its Workplace Giving 

Program (WGP). 

A total of $156,911 for 2011-12 

was raised through employee 

contributions, which was donated to 

77 different charities and other notfor-profit 

groups. 

RailCorp continued to develop its 

close relationship with the major 

charity partner, the Child Protection 

Unit (CPU) at the Westmead 

Children’s Hospital. 

A total of $29,500 for 2011-12 was 

raised through the WGP for the 

refurbishment of the CPU. 

The Department of Premier 

and Cabinet announced it 

was developing a sector-wide 

Workplace Giving Program in July 

2011 that will aim to capture all NSW 

public sector employees. 

This new WGP will be rolled out 

in 2012-13 to all NSW government 

clusters. 

Developing relationships with 

community members 

Community Relations actively 

engaged with community members 

including residents, businesses 

and schools, to inform them about 

trackwork, construction and other 

RailCorp activities that affected them. 

A sponsorship procedure was 

developed to help maximise the 

support that RailCorp provides to 

local community groups. 

Appendix 12: Performance and numbers of executive officers 

The total number of positions with 

remuneration equal to or exceeding 

Senior Executive Service (SES) 

Level 1 (total remuneration package 

$155,100) is 370. This compares with 

331 for the 2010–11 reporting period. 

Since the introduction of the 

RailCorp Classification Structure in 

2008 there has been an increase in 

the number of employees engaged 

under contracts. This has therefore 

increased the number of employees 

that now have a total remuneration 

package of $155,100 and above 

(including superannuation). 

Of the 370 positions, women hold 

44 (11.9 per cent ). This compares 

with 39 (11.8 per cent ) for the 

2010–11 reporting period. 

As shown below, there was a 

total of 43 individuals in receipt of 

remuneration equal to or exceeding 

SES Level 5 (total remuneration 

package $241,251) throughout the 

reporting period. As at 30 June 

2012, the number of people on this 

level of remuneration was 34. 

Chief Executive, CES Level 8, 

Robert Mason, $533,820 

Delivered 2011 Customer Charter 

commitments, including 

improvements to passenger 

information and ticketing, as well as 

train and station cleanliness. 

Successfully introduced a new 

CityRail timetable in October 2011, 

which focused on easing crowding 

and better matching train capacity 

with passenger demand. 



Delivered on RailCorp’s obligations 

for the Rail Services Contract, 

including high levels of performance 

in the areas of fleet availability, 

operating costs and overtime. 

Proactively engaged in support of 

the rail reform (Fixing the trains) 

program. 

Group General Manager 

Asset Operations, RL17, 

Gavin Campbell, $405,600 

Accelerated the roll out of 

a comprehensive business 

improvement plan touching all 

aspects of the Asset Operations 

Group. 

Director Reform and 

Business Performance, 

David Callahan $378,683 

(Commenced 17 January 2012) 

Directed a review of RailCorp which 

partly informed the government’s 

Fixing the trains announcement on 

15 May 2012. Subsequently led the 

Worked with Transport for NSW to 

develop customer value proposition 

and associated improvement 

programs for future years. 

Led a safety program within the 

Asset Operations Group delivering 

significant improvements across all 

divisions. 

implementation of the program. 

This includes the creation of two 

new specialist organisations Sydney 

Trains and NSW Trains within 

12-18 months to improve customer 

Worked in partnership with Transport 

for NSW to support transport 

integration and improvement 

opportunities, including the transfer 

of portfolio significant projects to 

the Transport for NSW’s Project 

Division, and movement of staff to 

transport shared services. 

Developed and implemented a 

culture change program built on 

the foundation of an innovative 

leadership development program. 

Continued progressively enhancing 

the overall asset condition across 

the rail network. 

service delivery and organisational 

effectiveness. 

The creation of a new subsidiary 

cleaning corporation with 

outsourced management and 

improved systems to improve the 

cleanliness of trains and stations. 

Oversaw delivery of $1 billion in 

capital investment projects. 

Saw Waratah trains in service on 

the Airport & East Hills, South and 

Northern lines, and also as weekend 

Olympic Park shuttle services, 

with operational readiness and 

infrastructure work commitments to 

support further roll out on schedule. 

Continued to proactively address 

probity issues, including leadership 

of culture and behavioural change 

programs. 

Chief Operating Officer, 

Andrew Byford, RL18, 

$422,850 (Resigned 8 October 

2011) 

Achieved a growth in farebox 

revenue of 17 per cent during the 

financial year. 

Successfully established RailCorp’s 

new centralised Security Monitoring 

Facility. 

Completed the 2011 Customer 

Charter and the three-year 

Customer Charter program. 

Continued to roll out a reform 

program fundamentally changing 

the way key activities, such as 

fleet maintenance, are carried 

out and ensuring benchmarked 

performance levels are achieved. 

Supported the delivery of a large 

range of important projects and 

initiatives improving customer 

service and efficiency of all 

RailCorp’s maintenance activities. 

Strengthened the business group’s 

commercial and contracting 

capability to begin the process of 

driving improvements in the way 

the Asset Operations Group works 

with strategic industry partners. 


Engineering and Projects, 

RL17, Ian McCullough, 

$388,150 (Resigned 

18 April 2012) 

Oversaw the introduction into 

service of the seventh Waratah set. 

Continued the delivery of traction 

substation upgrades. 

A program of 750 voluntary 

redundancies aimed at middle 

management forms part of a push 

to remove bureaucracy. 

Transferring major procurement 

projects and the Design Authority 

to Transport for New South 

Wales to allow the new specialist 

organisations to focus on service 

delivery and maintenance. 

Project Director PPP, RL13, 

Frederick Paton, $360,000 

Led the ongoing procurement 

of 626 passenger cars for the 

NSW Rolling Stock Public Private 

Partnership (PPP), the Simulators 

and the establishment of the 

Auburn maintenance facility and 

completion of related operational 

readiness and enabling works 

projects across RailCorp for the 

introduction of the Waratahs into 

passenger services. 

Managed key project and external 

stakeholder relationships and the 

government project governance 

and reporting requirements to 

stakeholders. 

Appendices 

Appendices 

121

Led the financial, commercial, 

technical and safety compliance 

requirements for the project. 

Established and led the 

implementation of the transition 

of the project management from 

RailCorp to Transport for NSW 

effective from 1 May 2012. 

Oversaw the completion of safety 

assurance activities to achieve the 

accreditation variation from the 

regulator for the operation of the 

Waratah fleet in revenue service. 

Oversaw the completion of 10 

trains through manufacturing, 

testing, commissioning and award 

of practical completion and 

commencement of passenger 

services into sectors 2 and 3. 


Finance and Corporate 

Services, Gary Pedersen, 

RL16, $347,600 

Achieved an unqualified Audit 

Report for the year ended 

30 June 2011. 

Managed financial performance 

to bring RailCorp in better than 

operating budget in 2011-12. 

Continued implementation of 

initiatives to enhance procurement 

procedures and processes. 

Continued the implementation of 

a redesign of all financial policies, 

processes and systems to best 

practice. 

Oversaw the ICT function 

and continued repositioning 

of ICT to a customer-focused 

function supporting key business 

imperatives. 

Oversaw the RailCorp participation 

in the Transport Corporate and 

Shared Services reform program. 

Contributed to the RailCorp reform 

program. 


Safety and Environment, 

RL15, Clare Kitcher, $338,850 

Achieved full rail safety accreditation 

for operation of current and to-bedelivered 

Waratah trains. 

Provided professional safety 

support services to managers 

across RailCorp, through a team 

of competent safety practitioners, 

driving a significant reduction in 

lost time injury rates across the 

organisation. 

Delivered continuously improving 

management systems to support 

the achievement of safe and 

sustainable outcomes and safety 

and environmental accreditation 

and licences. Implementing 

changes needed to meet the new 

Work Health and Safety legislation 

requirements. 

Delivered a sustainability blueprint 

and partnered with Transport 

Construction Authority to deliver 

sustainability design guidelines. 

Provided technical expertise to 

major capital projects, including 

North West Rail Link, in areas of 

safety risk, safety change/assurance 

and human factors. 

Produced and implemented 

(July 2012) new, nationally 

consistent work-on-track rules 

across the RailCorp network. 

Led the drug and alcohol system, 

education and testing regime. 

Achieved Chartered Fellow 

accreditation with the Safety 

Institute of Australia. 

Director Special Projects, 

RL15, Louise Hart, $324,300 

Led turnaround of $200 million 

capital project. Renegotiated 

commercial terms and technical 

specification to align with business 

requirements. Established Executive 

Leadership Team to ensure the 

project continues to meet its revised 

budget and schedule. 

Member of Tender Evaluation 

Committee for the award of a 

$1.4 billion contract to manage heavy 

maintenance and logistics for 1050 

cars of RailCorp’s fleet of passenger 

rolling stock. Led parallel commercial 

negotiations with two tenderers to 

secure the best commercial terms. 

Member of project leadership 

team for the Oscar Stage 3 and 

3A project for the delivery of 

outer suburban rolling stock. 

Completed delivery of the Stage 

3 trains early and within budget. 

Project received two project 

management achievement awards 

by the Australian Institute of Project 

Management in the category of 

Product Development. 

Director People & Change, 

RL16, John Cairns, $320,000 

(Commenced 2 April 2012) 

replaced Director Human 

Resources, RL16, Brian 

Hartmann, $309,550 (Retired 

16 January 2012) 

Led the implementation of RailCorp’s 

2010 enterprise agreement 

including the establishment of the 

RailCorp enterprise agreement 

steering group. 

Championed RailCorp’s equity 

and diversity program, which has 

been recognised with the following 

awards during the reporting period: 

• NSW Carer Friendly Employer of 

the Year for 2011 

• Finalist in the Australian Human 

Resources Institute Inclusive 

Workplace Award for 2012 

• Finalist in the Deaf Australia Fair 

Go Awards for 2011. 



Delivered e-learning modules for 

delivering significant savings and 

an externally funded budget of 

167 training programs to 5801 

improved customer services within 

$75 million, and a major periodic 

RailCorp staff through RailCorp’s 

the Asset Operations Group. 

maintenance budget of $37 million. 

new learning management system, 

My Learning Zone. 

Oversaw the implementation of 

Lean Six Sigma projects, which 

Introduced the earned value 

measurement system for projects 

Oversaw 27,626 new Rail Safety 

targeted both reliability and process 

being delivered by the division and 

Worker (RISI) cards distributed to 

improvements. 

used alliance methodologies to 

existing, verified card holders and 

new applicants who met the identity 

and verification requirements prior 

to the cut over on 1 December 2012. 

The lead representative for the 

current reform program, Fixing the 

Trains, for both Engineering and 

Planning and Asset Operations 

commence the implementation of 

‘Target Outturn Costs’ for larger 

more complex projects. 

Actively championed and 

Delivered eight new HR procedures 

Group. 

introduced a lessons-learned culture 

which were published and have now 

within the division. 

replaced all previous SRA and RIC 

policies. 

Led the delivery of health and 

fitness programs and initiatives 

General Manager 

Infrastructure Maintenance, 

RL15, John Minchin, $294,650 

Enhanced stakeholder 

communications and focused 

project accountabilities by driving 

in the introduction of Visual 

during 2011-12. 

Championed 5S methodology 

Management Centres. 

Delivered a customer improvement 

program for the human resources 

group based on the results of the 

improvements to Civil Infrastructure 

depots resulting in greater 

efficiencies and safety. 

As a Novo Rail Board member, 

actively managed the increasing 

Novo Rail Alliance outputs, which in 

inaugural HR Service Delivery 

Effectiveness Survey. 

Led the people and change 

initiatives within the RailCorp 

reform program. 

Led the change team for the 

outsourcing of lifts and escalators. 

Successfully delivered $210 million 

of routine maintenance for track, 

signalling, electrical and stations. 

2011–12 successfully delivered $169 

million of work and successfully 

achieved all targets for critical 

resource development. 

Drove the voluntary redundancy 

program as part of the Minister 

for Transport’s Fixing the Trains 

announcement in May 2012. 

Oversaw the reform of human 

resources through the Corporate 

Shared Services Reform. 


Maintenance Contracts 

and Commercial, RL15, 

Joseph Camilleri, $311,150 

Headed up the new Maintenance 

Contracts and Commercial Division 

within Asset Operations Group. 

Finalised the tender of the Level 

3 Maintenance Contract .Contract 

value in excess of $1 billion over 

seven years. 

Continued with the development of 

the short- and long- term initiatives 

Actively managed the Infrastructure 

Reliability Improvement Program. 

Lead the introduction of the 

behavioural safety change plan, 

Target Zero, into the division. 

Actively supported the 

improvement of leaders’ capabilities 

with coaching support for the 

Leadership Challenge. 

General Manager Projects, 

RL15, Nigel Howlett, 

$294,500 

Led a team of 343 staff and 60 

contractors with an LTIFR of 1.48 

and a supply chain with an LTIFR 

of 0.88. 

Successfully delivered more than 

106 programs with an allocated 

capital budget of $705 million, 


Strategy and Service 

Development, RL15, 

Vivienne King, $294,300 

(Resigned 31 January 2012) 

Managed capital investment process. 

Progressed the Emu Plains Stabling 

project. Design team fully mobilised 

and progressing through detailed 

design phase. 

Progressed the South Sydney 

Freight Line project by completing 

major works at Cabramatta 

Station and completion of Sefton 

earth works and Leightonfield 

commissioning. 

Dunmore Loop Extension was 

commissioned in December. Cable 

route for signal completed 2011. 

Signal panel work completed (95 

per cent) at Wollongong. 

Appendices 

Appendices 


Successfully implemented a 

modified CityRail timetable on 23 

October 2011 to provide additional 

services for customers and create a 

more efficient network. 

Completed easy access upgrades 

and accessibility improvements at 

several stations. 

Commenced project to grow 

RailCorp secondary revenue. 

Delivered the 2011-16 RailCorp 

Corporate Plan. 

Chief Health Officer, RL12, 

Armand Casolin, $293,700 

Developed and launched a national 

training program and online learning 

exercise for authorised health 

professionals, which is endorsed 

by the Rail Industry Safety and 

Standards Board, standardises the 

induction provided to doctors who 

undertake medical assessments of 

rail safety workers and creates a 

national panel of authorised health 

professionals for use by industry. 

Engaged a manufacturer to 

produce to order RailCorp’s colour 

vision simulated test, which is 

known as the RailCorp Lantern. 

Delivered a program of drug and 

alcohol assessments for contractors 

who have had previous positive 

drug or alcohol tests. 

Managed RailCorp’s automated 

external defibrillator (AED) 

program, with 105 AEDs deployed 

and four lives saved since 2009. 

Managed RailCorp’s employee 

assistance and critical incident 

support programs and delivered 

RailCorp’s health promotion 

programs including influenza 

vaccination, quit smoking, City2Surf, 

JP Morgan Corporate Challenge, 

pedometer challenge, health fairs, 

health e-learning and SafeSpine. 

Executive General Manager 

Commercial Services, RL15, 

Aidan Hughes, $288,300 

(Resigned 26 January 2012) 

Managed the delivery of shared 

services functions for RailCorp 

including property services, 

strategic procurement and supply 

and plant hire services. 

Facilitated the whole-of-business 

responses to all recommendations 

flowing from ICAC inquiries into 

RailCorp. 

Led corporate projects which 

had organisation-wide impacts 

including auto log books for motor 

vehicles and plant hire services 

improvement. 

Formed the new Compliance and 

Ethics Division responsible for 

implementing strategies to enhance 

probity. 

Represented RailCorp’s interests 

in the establishment of Transport 

Shared Services. 

Executive General Manager 

Business Performance, RL14, 

Peter Crimp, $285,000 

Achieved an unqualified Audit 

Report for the year ended 30 June 

2011. 

Managed the provision of timely 

and relevant financial information to 

both internal and external users. 

Managed the preparation of 

RailCorp’s financial statements 

and the associated external audit 

arrangements. 

Managed the financial budgeting, 

forecasting and reporting 

processes. 

Co-lead of the baselining stream 

of the initial phase of the RailCorp 

Reform Program. 

Coordinated RailCorp’s relationship 

with the Airport Link Company 

Pty Ltd. 

Engineering Technical 

Director, RL13, Guy Collishaw, 

$284,550 

Continued the leadership of all 

engineering and technical aspects 

of NSW’s Rolling Stock Public 

Private Partnership (PPP) project. 

The Waratah fleet operating in 

revenue service has grown to 10 

sets with reliability and availability 

that has provided RailCorp with 

satisfactory performance. 

Management of minor defects 

associated with the Waratah fleet 

and working with Downer EDI Rail 

to reduce the total number by more 

than 60 per cent in the first year of 

operation. 

The technical team has continued 

to support the review of design 

changes to ensure that the sets 

continue to meet the contract 

requirements. 

The team has been shaped and 

prepared for the increased rate 

of delivery and introduction into 

service of up to two sets per month. 

Developed and prepared robust 

processes for on-going inspections, 

reviews and audits throughout the 

design, procurement, manufacturing 

and testing processes to enable 

RailCorp to identify opportunities 

or risks at the earliest point in the 

project lifecycle. 



Operations Manager, RL13, 

Tom Stuber, $284,550 

operations at stations, tunnels and 

in train stabling yards. 

General Counsel, RL16, 

Irene Rusak, $282,300 

(Commenced 27 November 2011) 

Acted as General Manager 

Infrastructure Renewals for three 

months. 

Facilitated significant improvements 

in safety performance within the 

division through engagement with 

all levels of staff focusing on safety 

behaviours, staff engagement and 

targeted safety initiatives. 

Led the track works group of the 

division delivering a works program 

of $186 million. Restructured the 

track and civil groups to develop 

a more integrated approach to 

project delivery. 

Cleaning reform savings achieved to 

the extent of $9.4 million in 2011-12. 

Security Monitoring Facility 

successfully established. 

Installation of 150 rubbish bins on 

key stations and platforms further 

roll out for 2012. 

Completed the 2011 Customer 

Charter and the three-year 

Customer Charter program. 

Oversaw CBD stations clean up 

operation. 

Introduced the six principles of 

customer service and oversaw their 

subsequent roll out to frontline staff. 

Revised RailCorp’s corporate 

governance framework consequent 

on changes to governance by 

reason of legislative amendments 

commencing 1 July 2011. 

Provided strategic and legal advice 

and ongoing support to the Chief 

Executive and members of the 

Executive. 

Provided governance and 

secretariat support to the Executive 

Management Committee, the 

RailCorp Audit and Risk Committee 

and the RailCorp Safety Committee. 

Managed the provision of legal 

services to RailCorp. 


Infrastructure Renewals, 

RL15, David Foldi, $284,000 

Seconded to Transport for NSW 

during the reporting period. 

Delivered North West Rail Link 

maintenance concept description, 

fleet strategy and interface 

management plan. 

Worked on asset management, 

maintenance strategies and 

engineering authority. 

Managed the RailCorp interfaces 

and relationships. 

Oversaw the Taking Back the Trains 

intervention. 

General Manager Operations, 

RL14, Support, Ian Hill, 

$282,550 

Developed the crew reform 

program to deliver savings to 

help fund the 2010 Enterprise 

Agreement. 

Delivered annual recurring savings 

of more than $5 million in signon, 

and in improvements to 

maintenance centre crewing, train 

preparation and scheduling. 

Managed the RailCorp internal 

investigations function. 

Provided administrative support to 

the internal audit function. 


Chief Engineer, RL15, 

Dimitrios Modrouvanos, 

$278,900 

Provided engineering standards, 

technical advice and annual asset 

integrity reports for key asset classes. 

Led the development of the design 

authority concept within RailCorp. 

Appendices 

A/Chief Operating Officer, 

RL15, Tony Eid $283,950 

Restructured network operations 

Led the review and development 

of train crew related initiatives to 

reduce the noise impact of train 

operations at stations, tunnels and 

in train stabling yards. 

Led the development of the 

functions of the asset standards 

authority as a vehicle to 

manage design authority for the 

metropolitan railway network. 

and created signal box operations. 

Contributed to the growth in 

farebox revenue over the financial 

Maintained the crew workforce 

and depot deployment plans to 

efficiently minimise crew numbers. 

Established and managed the 

commencement of the engineering 

standards review initiative. 

year. 

Led the review and development 

of train crew related initiatives to 

reduce the noise impact of train 

Developed and delivered the 

removal of the two minute guard 

workstation relocation time from 

train timetables for 55 Central Coast 

services per week. 

Established the implementation 

team within Transport for NSW 

to introduce the asset standards 

authority. 

Appendices 


Partnered with the Transport 

Projects Division of Transport for 

NSW to improve engineering review 

and approval processes. 

General Manager Asset 

Planning and Performance, 

RL14, David Spiteri, $280,300 

Coordinated the delivery of the 

$1 billion maintenance program for 

the operational assets plan. 

All maintenance works delivered. 

Oversaw the master schedule 

expansion to encompass 

maintenance, capital works 

(major contributor to delivery of 

capital program in 2011–12) and 

external works, such as RTA Great 

Western Highway road widening 

and Quakers Hill to Schofield 

Duplication. 

Further developed RailCorp’s Total 

Asset Management System. 

Developed the Asset Management 

Plans and the Strategic Asset 

Maintenance Plan for Operational 

Assets for inclusion in the 

Transport for NSW Total Asset 

Management Plan. 

Oversaw the expanded operations 

of the Trackwork Service Alliance 

during its fourth year. 

Developed a number of Initiatives 

to reduce asset costs (such as Asset 

Simplification). 

Member of the RailCorp 

Reform Team. 

Director Office of 

Rail Heritage, RL14, 

Marianne Hammerton, 

$278,000 

Delivered priorities under RailCorp’s 

Heritage Asset Management 

Strategy (HAMS) including 

establishment of Heritage Service 

Provider Panel and completion 

of a Surplus Heritage Assets 

management study to guide 

management of disused 

non-operational assets. 

Successfully managed RailCorp’s 

interests in relation to its notfor-profit 

subsidiary Trainworks 

Ltd and Trainworks in its first 

year of operation. Indicators 

include visitation target met, no 

qualification by Audit Office and 

all board meetings attended in 

capacity as director. 

Delivered successful public 

programs including the ‘Food to 

Go’ exhibition and collaborative 

activities to celebrate the 50-year 

anniversary of the Southern Aurora. 

Gained National Trust NSW 

Heritage Awards in two categories 

– Conservation Moveable Heritage 

(Powder Van) and Regeneration 

and New Development (Trainworks). 

Significant and diverse contribution 

to People strategy and reform 

agenda including sponsorship, 

Steering committee and mentor/ 

support roles and leading corporate 

reform projects. 


Communications and Control 

Systems, RL14, Julian 

Richards, $277,200 

Led the division in improving safety 

culture, recording only one physical 

Lost Time Injury during the past 

12 months. 

Improved system and network 

availability to more than 

99.9 per cent. 

Supported RailCorp’s internal 

customers with their programs 

including implementing the 2010 

timetable, wi-fi access at Circular 

Quay, improved signal control 

systems and passenger information 

system roll out in line with customer 

charter commitments. 

Delivered full annual works program 

within benchmark and operating 

expenditure of 2.2 per cent of 

forecast. 

Achieved sustainable efficiency 

savings totalling 2.3 per cent of 

operating expenditure. 

Championed a people development 

culture focused on key critical 

skills shortages with a developed 

Succession Planning Program 

supported by established 

mentoring. 

General Manager Rolling 

Stock, RL14, David Filipetto, 

$273,000 

Improved the safety culture, 

improving lost time injuries (LTIFR) 

by 67 per cent in 12 months. 

Successfully implemented the 

rolling stock maintenance reform 

program to the standards and 

benchmarks established by the 

independent auditor. 

Successfully implemented the 

engineering technical services 

reform and restructure in alignment 

with business requirements whilst 

maintaining technical asset integrity. 

Successfully delivered the Taking 

Back Our Trains program to 

remove graffiti and other effects of 

vandalism from inside our trains and 

improving customer amenity. 

Actively sponsored 35 Lean Six 

Sigma projects to tackle asset 

reliability issues and drive business 

efficiency. 

Successful in securing Oscar Level 

1 and 2 Maintenance activity back 

into rolling stock division. 

Continued to implement an interior 

refresh program on the Tangara 

Fleet. 



General Manager Professional 

Services (until March 2012), 

A/Group General Manager 

Engineering and Projects, 

RL15, Philip Pearce $263,950 

investment selection and analysis, 

investment trade-offs and structure 

of the portfolio. 

Management of the capital 

funding approval governance and 

Initiated and equipped ‘Cleaning 

Flying Gangs’ to provide scheduled 

major cleans across stations in the 

network. 

Reduced graffiti tags reduced by 

Set up outsource of design reviews 

and $11 million design outsource 

contract. 

Benchmarking and reform of 

professional services under ‘Back to 

the Future’ initiative 

Delivered $980 million capital 

projects to within 2 per cent of 

target by financial year end. 

processes, including leading the 

ongoing maturity and development 

of the capital funding approval 

governance processes. 

Led the annual total asset 

management planning activity, 

including the development of the 

RailCorp Asset Strategy and the 

Strategic Capital Investment Plan 

submission to Transport for NSW. 

55 per cent on walls of trains using 

patch painting. 

Rationalised and reduced contracts 

in Presentation Services Division 

from approximately 70 to 14 to 

provide significant cost savings. 

Introduction of initiatives to 

optimise equipment usage and 

improve staff utilisation and 

productivity machines to clean 

Awarded the Blacktown Main 

Managed the ongoing development 

escalators; scrubbing machines 

West signalling control system 

and management of the RailCorp 

for station platform cleaning; 

replacement contract. 

project management methodology, 

equipment to aid cleaning high 

Automatic Train Protection System 

renegotiated. 

delivering two releases throughout 

the year, as well as the development 

and delivery of training to the 

areas; individuals rather than pairs 

assigned to carry out train in transit 

cleaning; centralised rostering. 

Digital Train Radio delivery contract 

project management community. 

renegotiated. 

Oscar Phase 3 delivered ahead of 

time and under budget. 

Transfer of major projects into 

Transport for NSW. 

Initiation of Asset Standards 

Authority. 

Initiating transfer of chief engineers 

staff to ASA. 

Developed strategy for Sydney 

Trains Engineering and Systems 

Integrity in RailCorp reform. 

Introduction of ‘Lead the Future’ 

leadership development. 

General Manager Enterprise 

Portfolio Management 

Office, RL14, Sandra Halpin, 

$265,000 

Managed the 10 Year Capital 

Investment Portfolio of more than 

$1 billion annually, in a period 

of record annual capital spend, 

Managed the program of capital 

project health checks and reviews 

to deliver improved project delivery 

and outcomes. 

Primary interface with Transport for 

NSW on the Rail Capital Program. 

General Manager Customer 

Service – Northwest, RL15, 

William Cowan, $264,350 

Cleaning Reform Project key 

achievements included the achieved 

saving of $9.4 million in 2011-12, with 

forecast recurring annual savings of 

$13.0 million from 2012-13. 

Removed the equivalent of 134 

full-time positions through the more 

efficient allocation and scheduling 

of station and train cleaning staff. 

Increased the weekday in-transit 

and turnaround cleaning of 

suburban cars in service from an 

average of 1677 to 3250 cars per day 

to reduce litter on trains in service. 

Commercial Director, RL13, 

Stephen Kroon, $263,600 

Provided relevant financial 

budgeting, forecasting and 

reporting of the public private 

partnership (PPP) project to key 

project and external stakeholders 

within the government’s project 

governance and reporting 

framework. 

Managed financial performance to 

bring the PPP fleet in line with its 

capital budget in 2011–12. 

Managed the provision of updated 

bank guarantees and alignment of 

RailCorp insurances with the PPP 

insurance arrangements. 

Provided due diligence advice 

in regard to refinancing and 

restructuring of the PPP company. 

Maintained and updated the 

PPP accounting model, enabling 

RailCorp to meet its statutory 

disclosure requirements. 

Appendices 

including total capital planning, 

Appendices 


Developed and implemented the 

PPP contract management system 

and procedures to administer the 

payment mechanism of the 

PPP contract. 

Analysed and provided financial 

advice in negotiation of PPP 

contract variations. 

Delivered certification and 

validation of requirements for 

payment under the PPP contract. 

Managed external and internal 

audits conducted in regard to the 

PPP project. 

Track Works Manager, RL13, 

Bryant Croucher, $260,850 

Seconded to lead a multi-discipline 

team, and responded to an 

expression of interest and then a 

response to tender to the Australian 

Rail Track Corporation for the 

Southern Sydney Freight Line 

track construction contract. All 

milestones met. 

Led the master schedule, demand 

planning and strategic track 

possession team. Optimised 

resource allocation, improve 

efficiencies and access 

opportunities for routine, major 

periodic and capital project delivery. 

Implemented changes to possession 

management and project interface 

safety processes. 

Led the team responsible for the 

review of major capital projects 

deliverability during the early 

stages of a project life cycle to 

ensure critical internal resources 

and access are available, leading to 

efficiency improvements. 

General Manager Customer 

Programs and Performance, 

RL13, Paul Passmore, 

$260,450 (Resigned 1 February 

2012) 

Developed the Customer Charter 

for 2011-12. Responsible for the 

commission of the Security 

Monitoring Facility and its set up. 

Initially seconded to Transport 

for NSW’s Customer Experience 

Division then appointed 

permanently. 

General Manager, 

Infrastructure Renewals, 

RL15, Tanya Johnstone, 

$260,000 

Led a significant improvement 

in safety performance within the 

Infrastructure Renewals division, 

focusing on safety behaviours, staff 

engagement and targeted safety 

initiatives. 

Led RailCorp’s infrastructure 

construction team, comprising 

more than 1050 staff members, 

in partnership with the rail supply 

industry, to safely deliver more than 

1000 projects valued at $315 million 

to support our rail infrastructure 

modernisation program. 

Management of commercial 

businesses producing turnouts, 

welded rail, signalling equipment, 

ballast quarrying and heavy plant 

operations with a total turnover of 

$200 million per annum. 

Successfully delivered major 

projects including commissioning 

of the Solar 3 bi-directional 

signalling between Como and 

Sutherland, commissioning of 

duplicated line between Quakers 

Hill and Schofields, Dunmore loop 

extension, Traction Supply Upgrade 

substations commissioning, 

overhead wiring modernisation, 

track upgrading, turnout renewals 

and the bridge renewal program, 

most notably the renewal of 

Roseville rail bridge through 

innovative project delivery. 

Alliance Board Member for the 

Track Service Alliance with John 

Holland Group to deliver a 

significant turnout renewal program. 

Driver of reform initiatives within 

Infrastructure Renewals focusing 

on leadership and capability 

development, a culture of 

accountability and commercial 

business reform, as well as lead for 

the people and change stream for 

the RailCorp reform program. 

Deputy General Counsel, 

RL13, Heather Oswald, 

$258,750 

Managed the day-to-day operations 

of RailCorp’s legal practice. 

Provided timely advice to senior 

managers and line managers 

relating to commercial contracts 

and disputes, insurance law, 

employment and industrial law, 

anti-discrimination legislation and 

administrative law. 

Managed the services provided to 

RailCorp by external legal service 

providers and monitored their 

expenditure. 

Ensured the professional 

development requirements for all 

legal staff were met. 

General Manager Emergency 

Preparedness, RL13, Ronald 

Creighton, $257,850 (Retired 

3 January 2012) 

Provided expert information and 

advice on train customer safety 

during emergency situations with 

regard to passenger detrainment 

procedures, train and tunnel 

emergency equipment and fire 

dynamics simulation and testing. 



Managed RailCorp incident 

management framework and 

incident control system for incident 

management. 

Managed and maintained Safety 

Management System Element 

15 – Incident Management and 

Emergency Response. 

Managed the development and 

training of senior management 

teams to meet the incident control 

system requirement. 

Managed RailCorp emergency 

response capability through the 

joint RailCorp/emergency services 

exercise program. 

Commercial Manager, RL14, 

Frank McCormack, $251,100 

Achieved Lost Time Injury 

Frequency Rate of zero. 

Provided second-in-charge support 

to the General Manager Projects, 

including acting in that capacity for 

three months of the year. 

Provided project support functions 

for the management of $770 

million of capital, major periodical 

maintenance and external works. 

Led the recruitment of 72 positions 

to support delivery of the allocated 

works programs. 

Delivered the annual known safety 

risk performance reporting 

Led a significant review of the 

safety risk register delivering 

continuous improvement to the 

understanding of the known 

risk profile. 

Executive Manager, Gateway 

& Strategic Program, RL12, 

Peter Stokes, $247,100* 

Established the Program 

Management Office for Planning 

& Programs Division Transport for 

NSW. 

Managed RailCorp business 

continuity governance. 

Introduced new target out-turn cost 

process and governance regime 

to increase certainty of planned 

outcomes. 

Developed and implemented a 

framework for the governance and 

oversight of the planning pipeline 

activities within Transport for NSW. 

General Manager Business 

Services, RL14, Steven 

Beasley, $251,750* 

Delivered operational business 

support shared services function to 

RailCorp 1.6 per cent below budget. 

Contributed to all aspects of the 

Transport Shared Services vision 

and strategy including leadership 

of motor vehicle consolidation and 

purchasing card extension early 

benefits projects. 

Contributed to the procurement, 

time capture to pay and auto log 

book projects. 

Increased internal customer 

satisfaction rating from 85 per cent 

in 2010-11 to 92 per cent in 2011-12. 

Provided timely and accurate KPI 

reports to the business. 

Implemented a case management 

model to workers compensation 

services. 

* On assignment to TfNSW. 

Increased project management 

certification competencies to 

35 per cent. 

Provided alliance leadership team 

membership for the Kingsgrove to 

Revesby Quadruplication project. 

Provided client oversight of the 

Novo Rail Alliance, which achieved 

$150 million of product out-turn, 

and the development of critical 

technical resources. 

General Manager, Risk, RL13, 

Jamie McDonald $247,450 

Delivered an improving enterprise 

risk management system to support 

the organisation’s needs. 

Achieved accreditation to introduce 

Waratah trains into passenger 

service for testing, commissioning 

and operation into revenue service. 

Provided professional technical 

expertise to major capital projects 

in areas of safety risk, safety 

change/assurance, human factors 

and enterprise risk. 

Supported the organisational redesign 

of the investment programs 

branch within the Planning and 

Programs Division. 

Project managed the development 

and implementation of the 

investment portfolio management 

framework to support the 

operational establishment of the 

investment programs branch. 

* On assignment to TfNSW. 

A/General Manager 

Professional Services, 

Peter McGregor, $246,000 

(commenced 5 March 2012) 

Delivered engineering designs and 

engineering services for $1.162 

billion capital investment program 

and $700 million renewals/major 

periodical maintenance activities. 

Utilised external design review 

panel, increasing capacity for 

design reviews. 

Managed prioritisation process with 

Novo Rail and TPD on key projects 

to reduce design review cycles. 

Appendices 

Appendices 


Successfully grew in-house 

engineering design capability. 

Commenced the organisational and 

transport reforms required within 

the Professional Services Division. 

Program Manager, Rolling 

Stock Projects, RL13, 

Barry Lovat, $245,600 

Delivered a successful rolling stock 

projects program of $159 million 

capital and $38 million of major 

periodic maintenance. 

Manages a staff of 65 employees 

and contractors, who are 

responsible for more than 

40 projects. 

Managed the successful delivery 

and entry to service of 44 Oscars 

during 2011-12 and the completion 

of the Stage 3 delivery of the cars. 

In 2011, accepted two awards for 

the Oscar Stage 3 project jointly 

with UGL Rail, namely the NSW 

Australian Institute of Project 

Management (AIPM) Achievement 

Award for Product Development 

and a National AIPM High 

Commendation Award for Product 

Development. 

Oversaw the management of the 

Tangara Refresh, where a total 

of 54 by four-car sets have been 

refreshed, which represents 50 per 

cent of the Tangara fleet. Total value 

to date is more than $55 million. 

Managed the prototype trial of the 

Internal Emergency Door Release 

detailed design for fitment to the 

Millennium and Oscar fleet. 

Completed the XPT fleet 

refurbishment program valued at 

more than $42 million. 

Appendix 13: Government Information (Public Access) Act 2009 

Background 

Under section 125(1) of the 

Government Information (Public 

Access) Act 2009, RailCorp is 

required, as a NSW Government 

agency, to report annually on 

details and outcomes of access 

applications received during 

the relevant period. Statistical 

information is provided in the 

form required by schedule 2 of the 

Government Information (Public 

Access) Regulation 2009. 

Under clause 7 of the Regulation, 

the report may be tabled in 

RailCorp’s Annual Report. 

The following report is provided in 

respect of the 12 month period 

1 July 2011 to 30 June 2012. 

Discussion 

RailCorp continues to actively 

open government information to 

the public through the release of 

information proactively, informally 

and in response to formal access 

applications. 

The following summary details 

informal requests for information 

and access applications received 

or processed during the reporting 

period. 

A total of 654 applications were 

received, comprising: 

• 138 formal applications (the 

subject of Table C of Annexure ‘A’ 

below) 

• 10 matters referred to RailCorp for 

consultation 

• 506 informal requests for 

information. 

There were 661 decisions regarding 

release of information, comprising: 

• 146 decisions in regard to formal 

access applications (the subject 

of Tables A, B, D, E, F, of Annexure 

‘A’ below) 

• 10 decisions regarding 

consultation 

• 505 decisions on informal release 

of information. 

As required under clause 7 and 

schedule 2 of the Regulation, 

Annexure ‘A’ to this report provides 

statistical information regarding 

formal access applications and 

details RailCorp’s proactive release 

program. 

130 


Analysis 

The reporting period saw a 

slight reduction in requests for 

government information received 

(654) when compared to the 

previous year (702). 

The number of formal access 

applications received (138) 

represents a 13 per cent reduction 

when compared to 2010-11 (159). 

Of the 146 formal access 

determinations made in the period, 

145 were decided within the 

statutory or agreed timeframes. 

For those applications where it 

was found that the information 

requested was held by RailCorp, 89 

per cent of determinations granted 

full or part access. 

• Publication of a wide range of 

data and information regarding 

the delivery of passenger rail 

services by RailCorp on its 

website and in other forms 

• Regular review by RailCorp’s 

business units of information held 

that may be of interest to the 

public 

• Consideration by the GIPA 

office of frequently requested 

information for proactive release 


RailCorp reviewed its program by; 

• Assessing information published 

on its website 

• Identifying new project and plan 

information to ascertain material 

• MainTrain Contract and Oscar 

project 

• Rail development and systems 

projects including new rail links 

and infrastructure planning 

• Emergency preparedness and 

planning updates 

• Progress reports on RailCorp’s 

drug and alcohol testing 

program 

• Digital Train Radio System 

updates 

• Details of new programs, 

intiatives, trackwork, service 

changes and events. 

2. Number of access applications 

received – Clause 7(b) 

Additionally, in accordance with 

section 8 of the GIPA Act, RailCorp 

released government information in 

responding to 505 informal requests 

during the period – a number 

comparable to the prior year. 

Annexure A – Obligations 

under the GIPA Act 

1. Review of proactive release 

program Clause 7(a) 

In accordance with section 7(3) of 

the GIPA Act, RailCorp conducted a 

review of its program to proactively 

release information that can be 

made publicly available. Under the 

Act this review must be undertaken 

at least once every 12 months. 

which may be of interest to the 

public 

• Assessing newly created 

information for proactive release 

• Examining requests for 

information received and 

reviewing information detailed 

in RailCorp’s disclosure log, 

providing feedback to business 

units regarding potential future 

proactive release. 

As a result of this review, RailCorp 

released the following information 

proactively: 

• Updated passenger statistics, 

service performance indicators 

and data, including on-timerunning 

information and 

benchmarking reports 

During the reporting period 

RailCorp received a total of 138 

formal access applications, which 

includes withdrawn applications, 

but not invalid applications. 

3. Number of refused applications 

for Schedule 1 information – 

Clause 7(c) 


RailCorp refused a total of eight 

formal access applications because 

the information requested was 

information referred to in Schedule 

1 to the GIPA Act. Of those 

applications, two were refused in 

full, and six refused in part. 

4. Statistical information about 

access applications - Clause 7(d) 

and Schedule 2 

Appendices 

RailCorp’s program for the 

proactive release of information 

• Information on new projects and 

plans including: 

involves: 

• RailCorp’s Rolling Stock Public 

Private Partnership project 

Appendices 

131

Table A: Number of applications by type of applicant and outcome* 

Access 

granted in full 

Access 

granted in 

part 

Access 

refused in full 

Information 

not held 

Information 

already 

available 

Refuse to 

deal with 

application 

Refuse to 

confirm/ 

deny whether 

information is 

held 

Application 

withdrawn 

Media 10 2 6 7 0 0 0 2 

Members of Parliament 0 0 0 1 0 0 0 0 

Private Sector Business 6 3 3 3 0 0 0 2 

Not-for-profit organisation 

or community group 2 1 0 1 0 0 0 0 

Members of the public 

(application by legal 

representative) 26 8 0 3 0 0 0 0 

Members of the public 

(other) 36 9 4 8 1 0 0 2 

* More than one decision can be made in respect of a particular access application. If so, a recording must be made in relation to each such 

decision. This also applies to Table B. 

Table B: Number of applications by type of application and outcome* 

Access 

granted in full 

Access 

granted in 

part 

Access 

refused in full 

Information 

not held 

Information 

already 

available 

Refuse to 

deal with 

application 

Refuse to 

confirm/ 

deny whether 

information is 

held 

Application 

withdrawn 

Personal information 

applications* 48 8 2 5 0 0 0 0 

Access applications (other 

than personal information 

applications) 31 10 11 17 1 0 0 5 

Access applications that are 

partly personal information 

applications and partly other 1 5 0 1 0 0 0 1 

* A personal information application is an access application for personal information (as defined in clause 4 of Schedule 4 to the Act) about the 

applicant (the applicant being an individual). 

Table C: Invalid applications 

Reason for invalidity 

No of applications 

Application does not comply with formal requirements (section 41 of the Act) 2 

Application is for excluded information of the agency (section 43 of the Act) 0 

Application contravenes restraint order (section 110 of the Act) 0 

Total number of invalid applications received 2 

Invalid applications that subsequently became valid applications 2 

132 


Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in 

Schedule 1 to Act 


Number of times consideration used* 

Overriding secrecy laws 0 

Cabinet information 1 

Executive Council information 0 

Contempt 0 

Legal professional privilege 7 

Excluded information 0 

Documents affecting law enforcement and public safety 0 

Transport safety 0 

Adoption 0 

Care and protection of children 0 

Ministerial code of conduct 0 

Aboriginal and environmental heritage 0 

* More than one public interest consideration may apply in relation to a particular access application and, if so, each such consideration is to be 

recorded (but only once per application). This also applies to Table E. 

Table E: Other public interest considerations against disclosure: matters listed in table to section 

14 of Act 


Number of occasions when application 

not successful 

Responsible and effective government 22 

Law enforcement and security 9 

Individual rights, judicial process and natural justice 16 

Business interests of agencies and other persons 7 

Environment, culture, economy and general matters 0 

Secrecy provisions 0 

Appendices 

Exempt documents under interstate Freedom of Information legislation 0 

Table F: Timeliness 


Number of occasions when application 

not successful 

Decided within the statutory timeframe (20 days plus any extensions) 141 

Decided after 35 days (by agreement with applicant) 4 

Not decided within time (deemed refusal) 1 

Total 146 

Appendices 

133

Table G: Number of applications reviewed under Part 5 of the Act (by type of review and outcome) 

Decision 

Decision 


varied 

upheld 

Total 

Internal review 1 1 2 

Review by Information Commissioner* 0 0 0 

Internal review following recommendation under section 93 of Act 0 0 0 

Review by ADT 0 0 0 

Total 1 1 2 

* The Information Commissioner does not have the authority to vary decisions, but can make recommendations to the original decision-maker. 

The data in this case indicates that a recommendation to vary or uphold the original decision has been made by the Information Commissioner. 

Table H: Applications for review under Part 5 of the Act (by type of applicant) 


Number of applications for review 

Applications by access applicants 2 

Applications by persons to whom information the subject of access 

application relates (see section 54 of the Act) 0 

Appendix 14: Implementation of IPART fare determinations 

In January 2012, the government increased CityRail fares by an average of 5.4 per cent in line with cost of living 

increases for 2010 and 2011. This was less than the 10.6 per cent increase allowable under IPART’s maximum fare 

determination. The NSW Government said it would not implement the full IPART recommendation because of its 

commitment to not increase fares unless services improved. 

Appendix 15: Investment management performance 

In the year ended 30 June 2012, RailCorp invested surplus funds with NSW Treasury Corporation in 11am call deposits. 

The interest earned was 4.29 per cent on funds invested. During the same period, the comparable NSW Treasury 

Corporation 11am call deposit earned 4.29 per cent. 

Appendix 16: Liability management performance 

In the year ended 30 June 2012, RailCorp’s cost of funds was 4.91 per cent. During the same period, the benchmark cost 

of funds was 5.37 per cent. 

134 


Appendix 17: Annual Report 2011-2012 production costs 

Project management and design services: $81,065. 

The Annual Report is also available on the internet at www.railcorp.info 

Appendix 18: Consultants 

Consultant Projects Costs ($) 

Contracts of $50,000 or more 

Management services 

McLachlan Lister Pty Ltd Evaluation of Metropolitan Transport Plan 56,008 

Organisational review 

Booz & Company (Aust) Pty Ltd Analysis of options for the Fixing the Trains program* 5,850,699 

Headway Consulting Group 

Booz & Company (Aust) Pty Ltd 

WHS Safety Improvement Program Management for 

Asset Operations Group 498,053 

Development of Commercial Options for Bathurst 

Rail Fabrication and Strathfield Equipment Centre 339,500 

Miyow Pty Ltd Analysis of options for the Fixing the Trains program* 312,089 

The Connolly Partnership Strategic Communication Advice 97,057 

Ernst & Young Evaluation of Software Licence Management Initiative 97,051 

Altura Partners Pty Ltd Business Strategy & Improvement Program 81,750 

Total contracts of $50,000 or more (8 contracts) 7,332,207 

Contracts of $50,000 or less** (6 contracts) 143,518 

Total expenditure in 2011-12 7,475,725 

* Note that consultants were engaged by TfNSW but paid by RailCorp at the request of TfNSW 

** Note that capital expenditure of $8,000 is included in contracts of $50,000 or less 

Appendices 

Appendices 

135

Appendix 19: Overseas travel 

Officer name Date Destination Purpose of travel 

Richard Nabkey 

Peter Goodley 5-18 Aug 2011 China 

Andy Radford 20-29 Aug 2011 China 

For the rolling stock PPP contract: to witness Waratah 

re-qualification testing on train A13 at Changchun Railway 

Vehicles Co. Ltd (CRC) 

For the rolling stock PPP contract: to review build quality 

standards and associated quality assurance documentation 

of Waratah cars in progress at CRC 

Daryll Lundie 2-17 Sept 2011 China 

Jamie Macdonald 7-11 Oct 2011 Hong Kong 

To witness factory acceptance testing of RailCorp’s Digital 

Train Radio System 

To attend the International Suburban Rail Benchmarking 

Group Membership (ISRBG) Conference 

Chris Collier 11-13 Oct 2011 

John Cumarasamy 

Marco Diaz 14-27 Oct 2011 

Republic of 

Korea 

Switzerland 

and Italy 

To present at the 2011 Urban Environmental Accord Summit 

in Gwangjy 

To inspect and review early design stages for the $21 million 

mechanised track patrol vehicle contract 

Peter Handel 15-24 Oct 2011 China 

Terry Rowe 

Ivan Kraitchev 21-30 Oct 2011 USA 

Linda Harvey 29 Nov-3 Dec 2011 New Zealand 

Anthony Eid 29 Nov-3 Dec 2011 Japan 

Terry Rowe 24 Feb-4 Mar 2012 USA 

Ivan Kraitchev 

Roderick Smith 29 Mar 2012 UK 

Peter Handel 17-24 Mar 2012 China 

Joseph Reddy 17-27 Mar 2012 India 

For the rolling stock PPP contract: to undertake quality 

assurance and compliance review of the Waratah train build 

at the CRC prior to the shipment of train cars from China to 

Australia 

Production acceptance testing of 38 new ungraded ticket 

gates and individual components to update existing gates 

installed at CityRail stations under CTS contract for the 

electronic ticketing system 

Attendance at ANZSOG residential program to complete 

sponsored Executive Masters in Public Administration 

To attend International Suburban Rail Benchmarking Group 

(ISRBG) management meeting 

Production acceptance testing of 64 new upgraded 

ticket gates and individual components to update existing 

gates installed at CityRail stations under contract for the 

electronic ticketing system 

Quality assurance of integration testing of the development 

applications required for CityRail ticketing system and 

Sydney ferry gates 


assurance and compliance reviews of the Waratah train 

car build at the CRC manufacturing facility in conjunction 

with Downer EDI Rail and prior to the shipment of train cars 

from China to Australia 

For the rolling stock PPP contract: compliance review of 

the Integrated Commercial and Fleet Management System 

software development at Mahindra Satyam’s offshore 

offices 

136 


Officer name Date Destination Purpose of travel 

Guy Collishaw 18-25 Mar 2012 China 

Ronald Pearson 30 Mar-7 Apr 2012 Finland 

David Kippist 

Peter Handel 21-27 Apr 2012 China 

Peter Handel 16-23 May 2012 China 

David Kippist 

John Cumarasamy 25 May-3 Jun 2012 Italy 

Stephen Scott 27 May-3 Jun 2012 Norway 

Guy Collishaw 

Richard Nabkey 6-12 Jun 2012 China 

For the rolling stock PPP contract: technical reviews 

and inspections to determine the suitability of the details 

of design, build and manufacturing activities for the 

Waratah trains 

For the rolling stock PPP contract: to witness the 

specialised Speedometer undergoing Factory Acceptance 

Testing and to ensure that the design meets the overall 

contract requirement 


assurance and compliance reviews of the Waratah train car 

build at the CRC in conjunction with Downer EDI Rail and 

prior to the shipment of train cars 


assurance and compliance reviews (train appearance) of 

the Waratah train car build in conjunction with Downer 

EDI Rail 

For the rolling stock PPP contract: to undertake design 

quality assurance and systems integration reviews 

International Suburban Rail Benchmarking Group Phase 2 

annual meeting 

For the rolling stock PPP contract: to undertake 

manufacturing review of the Waratah train production, 

perform an audit of Halcrow China Team and 

roll-out tablet based inspection 

Peter Handel 13-27 Jun 2012 China 


assurance and compliance reviews (train appearance) of 

the Waratah train car build at the CRC in conjunction with 

Downer EDI Rail 

Melinda Bryde 29 Jun-8 Jul 2012 UK Liability and property insurance renewal 

Appendices 

Appendices 

137

Appendix 20: Land values and land disposals 

Land use Value at 30 June 2012 

$ million 

Value at 30 June 2011 

$ million 

Land under stations and infrastructure, including residential and 

occupied land 3,838.8 3,833.0 

Strata (airspace) leased to tenants 1.2 1.1 

Surplus land (including land available for sale) 37.7 30.6 

Total land owned or occupied – based on valuation 3,877.8 3,864.7 

Appendix 21: Funds granted to non-government agencies 

RailCorp paid the NSW Railway and Tramway Ex-services Association a grant of $750 during 2011-12, being an annual 

contribution to the association. The target group benefitting from the grant are ex-railway employees. The same 

amount was paid in 2010-11. 

Appendix 22: Credit Card certification 

Credit Card use in RailCorp has been in accordance with the requirements of the Premier’s memoranda and the 

Treasurer’s directions. 

Appendix 23: Research and development 

The Co-Operative Research Centre 

for Rail Innovation (CRC) is a 

collaborative venture between 

leading organisations within the 

Australian rail industry and a 

number of Australian universities, 

and is supported by the 

Commonwealth Government. 

Research areas and topics are 

driven by the industry, carried out 

by research experts, supported by 

key industry personnel with the aim 

of resulting outputs being adopted 

by the rail industry. 

RailCorp has been involved in 

more than half of the 105 projects 

the CRC board has commissioned 

to date. Projects undertaken 

during 2011-12 cover a diverse 

range of issues, such as track 

worker protection technology, 

mentoring and coaching, driver 

route knowledge acquisition, 

station access and design, rail noise, 

locomotive adhesion, rail defects, 

and the development of a national 

rail safety management program. 

Under the Commonwealth 

Agreement for the CRC, 

RailCorp provides an annual 

cash contribution of $285,000, 

a commitment of three full-time 

equivalent persons (FTEs) in 

‘staff-in-kind’ (time contributed 

in relation to the CRC by RailCorp 

personnel during the course of 

normal employment), and 

the equivalent of $570,000 

‘non-staff-in-kind benefit’. 

138 


Appendix 24: Major works in progress 

RailCorp has a wide range of works in progress at 30 June 2012 

including the following: 

Cost to date 

$ million 

Forecast completion 

(year) 

Clearways 1816 2014 

Waratah rolling stock - enabling and ancillary works 528 2014 

Outer suburban cars - tranche 3 431 2013 

Traction supply upgrade (Waratah A-sets) 255 2017 

Digital train radio system 99 2015 

Automatic train protection 69 2017 

Lidcombe to Granville Corridor upgrade 76 2020 

Appendices 

Appendices 

139

Appendix 25: Payment of accounts 

Outstanding invoices by age at the end of each quarter 

Quarter 

Current 

(i.e. within 

due date) 

$ million 

Less than 

30 days 

overdue 

$ million 

Between 

30 and 60 

days overdue 

$ million 

Between 

60 and 90 

days overdue 

$ million 

More than 

90 days 

overdue 

$ million 

September 2011 27.3 2.1 0.3 0.0 0.3 

December 2011 32.6 5.3 0.3 0.4 0.4 

March 2012 26.2 1.5 -0.9 1.7 1.0 

June 2012 60.0 4.3 0.7 0.7 0.1 

Small business suppliers 

March 2012 0.4 0 0 0 0 

June 2012 0.6 0 0 0 0 

Accounts paid on time within each quarter 

Measure Sept Dec Mar Jun 

Number of accounts due for payment 67,319 54,419 53,958 53,961 

Number of accounts paid on time 52,785 43,884 40,666 44,446 

Actual % accounts paid on time 78.4% 80.6% 75.4% 82.37% 

$ amount of accounts due for payment $700.6M $638.3M $640.4M $639.2M 

$ amount of accounts paid on time $361.0M $394.0M $400.5M $416.2M 

Actual % accounts paid on time (based on $) 51.5% 61.7% 62.5% 65.1% 

Number of payments for interest 0 0 0 0 

Interest paid on overdue accounts 0 0 0 0 

Small business suppliers 

Number of accounts due for payment 202 711 

Number of accounts paid on time 171 690 

Actual % accounts paid on time 84.7% 97.1% 

$ amount of accounts due for payment $0.5M $1.6M 

$ amount of accounts paid on time $0.5M $1.5M 

Actual % accounts paid on time (based on $) 92.0% 98.0% 

Number of payments for interest 0 0 

Interest paid on overdue accounts 0 0 

* GST included 

140 


Appendix 26: Controlled entity and subsidary disclosure 

Name 

Trainworks Limited 

ABN 59 147877 772 

Trading as Trainworks 

Trainworks Ltd was registered 

on 15 December 2010 and 

commenced operations on 4 April 

2011. Trainworks Ltd is a subsidiary 

controlled entity of RailCorp with 

a special purpose to operate the 

rail heritage site at Thirlmere. It is a 

company limited by guarantee and 

RailCorp is the sole member. 

Purpose 

Trainworks Ltd was established 

by RailCorp to meet RailCorp’s 

obligation to conserve and manage 

identified rail heritage assets of 

the state of New South Wales not 

required for the delivery of essential 

daily commuter services. Creation 

of the company enables these 

obligations to be met separately 

from RailCorp’s core business as an 

operating transport agency. 

Objectives 

Trainworks Ltd is registered as a 

charitable institution to operate a 

cultural facility (museum) known 

and trademarked as Trainworks. 

It has its own independent 

governing board and management 

team and is required to apply all 

income and property to benefit 

its rail heritage conservation and 

promotion objectives. 

Operations 

Trainworks Ltd operates from the 

RailCorp-owned facility at Thirlmere 

NSW, which it occupies under 

a formal custody management 

agreement. Trainworks Ltd 

manages the site and controls 

public access to the heritage 

collection items on display there. 

It receives limited interim financial 

support allocated from RailCorp’s 

Heritage Budget under a Funding 

and Member’s Deed. 

Activities 

• Encouragement of public 

knowledge of and access to the 

collection of rail heritage assets 

located at Thirlmere 

• Promotion and development of 

the exhibition and interpretation 

of NSW’s rail heritage, through 

providing educational resources, 

programs, opportunities and 

experiences to students and the 

general community relating to the 

items held at Thirlmere 

• Generation of income to sustain 

the collection, by responsible 

utilisation of the assets, including 

charging of entrance fees and 

retail sales; seeking sponsorships 

or partnerships, and any other 

appropriate form of commercial 

hire or activity that can be offered 

on the site. 

Appendices 

Appendices 

141

Performance targets and measures for 2011-2012 

KPI Target Actual 

1 Achieve balanced 

break-even budget 

Break-even $1874 

2.1 Achieve visitation of 30,000 

in the first 12 months of 

operations and growth of 

15 per cent per annum 

thereafter 

Museum visitors 

26,383 

Special event visitors 

14,203 

Museum visitors 

20,494 

Special event visitors 

10,682 

2.2 Visitation revenue $895,673 $619,283 

2.3 Visitor satisfaction 95% 97% (via voluntary exit survey) 

3 Establish a market presence 

and visibility via website and 

media attention 

4 Establish essential business and 

risk management systems 

5 Establish key stakeholder 

relationships and develop 

cooperative partnerships on 

site and within the local and 

regional community 

Establish social media as 

part of the Trainworks 

brand 

All critical business, risk 

management and safety 

systems in place 

RailCorp 

NSW Rail Transport 

Museum 

51,582 unique website visitors 

338,326 page views 

130 – mainstream media articles 

Facebook site created, with 443 likes and 

friends of fans reach in excess of 128,000 

Next stage refinement of plans underway 

(emergency preparedness, environment safety) 

1. Funding and members deed with RailCorp in 

place. 

2. Custody Management Agreement (re assets) 

with RailCorp in place. 

Draft Service Level Agreement between 

Trainworks and NSW Rail Transport Museum 

developed and reviewed by respective boards. 

Commentary: The first full year’s operating experience reflects the impact of a number of factors. Prolonged 

wet weather and economic conditions negatively impacted family discretionary spending, the events market and 

sponsorship. 

Recognition came for Trainworks with a Highly Commended in the Tourist Attraction category and Judges 

Commendation Award for Tourism Business Excellence from the 2012 Greater Sydney Tourism Awards. 

142 


Index 

Including Compliance Index 

Index 

143

Index 

Index 

Page 

Index 

Page 

Accessibilty/disability plans 23, 116 

Activities 15-46 

Aims and objectives 108 

Annual report production 135 

Budget 12 

Changes in Acts 110 

Charter 108 

Committees 109-110 

Community relations 117 

Community Relations Commission 120 

Complaints 118-119 

Compliments 118-119 

Conservation 36–39 

Consultants 135 

Contact details 

Co–Operative Research Centre for Rail 

Innovation/Research & Development 

Outside back 

cover 

138 

Credit card certification 138 

Customer charter 21-27 

Customer relations 21-27 

EAPS 117 

Equal Employment Opportunity 115 

Events after reporting date 5, 9, 108 

Exceptional movements in wages, 

salaries or allowances 

Executive performance 120–130 

Executive positions 120–130 

Female executive officers 120–130 

Financial statements 2011-12 47–102 

114 

Government Information 

(Public Access) 

130–134 

Grants 138 

Headcount by groups 114 

Heritage 36-37 

Independant auditor’s report 103–104 

Index 143 

Industrial relations 114 

Internal audit and 

risk management statement 

105 

Investment management performance 134 

IPART 134 

Key performance indicators 15–46 

Land values and disposals 138 

Letter of submission 

Inside front 

cover 

Liability management performance 134 

Multicultural policies 117 

Organisation structure 9 

Overseas travel 136 

Payment of accounts 140 

Personnel policies & practices 114 

Price determination 134 

Privacy 113 

Recycling 38-39 

Review of operations 12-13, 15–46 

Risk management 105 

Subsidiaries 141-142 

Table of contents 

Inside front 

cover 

Waste 38-39 

Work Health and Safety 113 

Works in progress 139 

144 


Street address 

Level 20 South Wing 

477 Pitt Street 

Sydney NSW 2000 

Mailing address 

PO Box K349 

Haymarket NSW 1238 

Phone 1300 038 500 

Fax 02 4962 9488 

www.railcorp.info 

CityRail Website 

www.cityrail.info 

CountryLink Website 

www.countrylink.info 

RAILCORP ANNUAL REPORT 2011–12 

Hours of business 

8.30am to 5pm 

Monday to Friday 

Transport Info 

www.131 500.com.au 

or 131 500 

(24 hours, 7 days a week) 

© Rail Corporation New South Wales 2012 

ISSN – 1835-2928 

JB1866_12

RailCorp Annual Report 2011-12 - Parliament of New South Wales ...

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