ANNUAL REPORT 2004–05 - V/Line

CEO’S REPORT (CONTINUED)PERFORMANCEFINANCEEMPLOYEES8V/Line achieved its target of 96 per cent reliability at alltimes and across all five corridors throughout 2004–05. Wewere unable to match this in punctuality, falling short of ourtarget of 92 per cent largely due to the flow-on effects ofthe major infrastructure works.While some improvement was recorded during the lastquarter of 2004–05, fluctuations in V/Line's punctualitylevels are likely to continue until the projects are completed.In the meantime, we will continue to focus on learning fromexperience and improving our performance whereverpossible. A key factor in learning to do things better hasbeen our close working relationship with our partners in railrevitalisation: the Regional Fast Rail Project, Pacific National,Connex and Leightons. In particular, a tighter teamapproach to planning has led to a more effective schedulingof work, which has helped to minimise disruptions toservices.The progressive introduction of our 38 new VLocity trainswill be crucial to improving V/Line's performance. Testing ofthe new trains and training of staff in their operationcontinued during the year.The addition of these modern trains in the year ahead willprovide a significant boost to overall fleet availability and toour ability to deliver new and improved services.V/Line's financial performance for the year was consistentwith budget expectations. Operating revenues were$206.7 million, comprising fare collections of $47.6 million,government subsidies of $155.5 million and other income of$3.5 million. Non-operating revenues were $8.2 million.Expenditure totalled $215.5 million, resulting in an operatingdeficit of $0.65 million.The variation between the 2004–05 and 2003–04 operatingresults reflects the arrangements made when V/LinePassenger Pty Ltd was purchased. The corporation'srecorded profit in 2003–04 of $126.1 million resulted fromthe accounting process applied to the purchase of theV/Line business, with a nominal $1 paid for assets valued at$136.8 million.The key to V/Line's ability to deliver on major projects will beour staff. During 2004–05, our focus has been on attractingnew staff with specific skills, as well as ensuring thatappropriate training structures and programs are in place tosupport and develop existing staff.| V/LINE ANNUAL REPORT 2004–05Significantly, during the year we were able to recruit 33experienced locomotive drivers who will be crucial to theintroduction of the new VLocity trains and the newtimetable. We have also addressed the career paths ofdrivers and conductors with the roll-out of a newsupervisory level.We have recognised that our front-line staff must have thetools and strategies to communicate effectively withcustomers and manage issues as they arise. Trainingprograms in customer service, cultural awareness andconflict resolution have been implemented.COMMONWEALTH GAMESThe 2006 Commonwealth Games in Melbourne will alsopresent opportunities and challenges for V/Line. We areworking closely with the Government, Games organisersand other transport operators to ensure successful deliveryof V/Line passenger train and coach services to and fromGames venues, in Melbourne and in regional centres.LOOKING AHEADWhile there is still much work to be done, V/Line in 2005–06will be well placed to deliver to the Victorian community thebenefits of the major rail rebuilding projects.Over the next 12 months we expect to see:• our new VLocity trains in service across the network• completion of the upgrade of our four major linesthrough the Regional Fast Rail Project• the completion of our new home at Southern CrossStation• the new timetable in operationWith this generational upgrade, V/Line will be in a positionto offer new and improved services, to increase ourpatronage and to enhance the return on the Government'smulti-million dollar investment.Rob BarnettChief Executive Officer