Department of Transport
Annual Report
2015-16
Our Purpose
We provide and enable safe, accessible and efficient movement for the economic and social prosperity of Western Australia.
Our Vision
To have the best integrated and intelligent transport services and solutions for the State.
Our Values
Clear Direction
We set clear direction and have the courage to follow through.
Fresh Thinking
We welcome fresh thinking and better ways of working.
Excellent Service
We work together to deliver excellent service.
Great people
We make things happen through our great people.
Statement of compliance with the Financial Management Act 2006
For the year ended 30 June 2016
To the Minister
Hon. Dean Nalder MLA
Minister for Transport
In accordance with Section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament the Annual Report of the Department of Transport for the financial year ended 30 June 2016.
The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006 and fulfils the Department of Transport’s reporting obligations under the Public Sector Management Act 1994, the Disability Services Act 1993 and the Electoral Act 1907.
Reece Waldock
Director General – Transport
Overview
Director General’s Foreword
It gives me great pleasure to present to you the Department of Transport’s (DoT) Annual Report for 2015-2016. It highlights achievements that demonstrate the great work of the Department’s dedicated staff following months of detailed planning and collaboration.
As Western Australia goes through an economic transition, we are experiencing increasing pressure on all modes of transport in both metropolitan and regional areas. It is clear that strategic planning is critical and I’m pleased to say that this year we have been working even harder with our portfolio partners; the Public Transport Authority (PTA) and Main Roads Western Australia, to deliver a smart, safe and customer focused transport network.
In June, leadership colleagues from across the portfolio met for the inaugural Portfolio Planning Day to consider the changing transport needs of our State and how the political and rapidly changing economic, social and environmental factors will influence the way we connect people and places. The result is the first Transport Portfolio Strategic Framework. This framework sets our agenda for working together to develop strategic transport policies, priorities and integrated transport plans to keep people and freight moving through WA – now and into the future.
As portfolio partners we can apply our expertise to provide world class outcomes and I am proud to say we are well underway in developing unified plans and policies.
An excellent example of this is the Transport @ 3.5 million – Perth Transport Plan for 3.5 million people and beyond. The Plan was developed during 2015-16 in close collaboration with our partners, and I believe it is a visionary proposal to expand and integrate transport options and to create a connected and accessible city with strong regional, interstate and international links. Transport @ 3.5 Million considers all modes of transport and is based on extensive research, knowledge, experience and predictive modelling. It takes into account many influencing factors, including future land use and employment distribution, changing demographics, social trends and expected advances in technology.
I am pleased to say that this year we stayed focused on improving our customer’s experience through providing more choice, flexibility and security.
Customer choice and service delivery were certainly key factors in the State Government’s May announcement to reform WA’s on-demand transport services. In the past few years, the on-demand transport industry has faced unprecedented changes with new market entrants and customer service expectations. It was evident from the feedback received following last year’s public release of the Green Paper proposing the reforms, that the industry and our community were ready for these changes.
The first stage of the On-demand Industry reforms will reduce red tape and remove many current licence restrictions, with the aim of supporting an industry that is flexible, responsive to its customers and importantly, will give the industry the freedom to compete and innovate. As DoT works with industry during the transition into the new environment, the safety and security of all passengers, drivers and operators will remain a priority.
This year the Department has taken further steps to providing customers with choice and ease of access to Driver and Vehicle Services (DVS). Since January 2016, DoT customers have been able to use a range of DVS services through an expanded 32 metropolitan Australia Post outlets. DVS has also entered into a new partnership with Kmart Tyre and Auto Centres and Coles Express stations to provide Authorised Inspection Stations (AIS) for vehicle examinations, expanding the service to 30 DoT vehicle examination centres (VEC), which will significantly reduce the wait time for customer bookings. Similarly, for drivers who require regular medical assessments to continue driving for work purposes, they can now simply complete a Fitness to Drive declaration rather than undertake a time-consuming full assessment.
In other developments, we continue to improve safety and connectivity for our State’s growing cycling community. This year, Perth’s first bike boulevards were approved for Belmont, Bayswater and Mt Hawthorn. Through clearly marked local streets, cyclists will travel through safe and comfortable bike routes close to schools, train stations or shops, while more than $3.5 million has been allocated for cycling infrastructure projects as part of the Regional Bicycle Network and Perth Bicycle Networks.
Our work on State-wide infrastructure projects is ongoing with major construction works commencing on the $18.3 million Exmouth Boat Harbour upgrade and extensions. As the largest harbour south of the Pilbara, Exmouth is an important maritime hub in the State’s north and DoT is working closely with the Gascoyne Development Commission, Shire of Exmouth and boat harbour users as the project moves through its stages. In Kununurra, the East Kimberley Regional Airport has had a $5.1 million runway upgrade to improve safety and functionality for its vital air services in our north.
During 2015-16, the WA branch of the Office of the National Rail Safety Regulator was opened following the introduction of the Rail Safety National Law (WA) 2015. This national rail safety system allows rail operators and safety investigators to move between states without the need to hold multiple accreditations. Not only does this streamline interstate trade it will provide a national pool of expertise to improve consistency and ultimately safety standards.
Finally on a personal note, this is the last Annual Report I will present on behalf of DoT as I will be stepping down as Director General as of July 2016. Since the day I started in 2010, it has been a privilege to work for such a dynamic organisation. Over the years I have seen it evolve into a strong portfolio firmly committed to our customers and the community. Now more than ever, transport is an integral part of the everyday lives of all Western Australians and there are many extraordinary developments ahead that will deliver the best integrated transport services for the State. I know I will be watching with much interest and great pride.
Reece Waldock
Director General – Transport
Highlights
The visionary Transport @ 3.5 Million – Perth Transport Plan was completed.
$59.7 million was invested back into CBD projects from the Perth Parking Licensing Account.
Work commenced on Perth’s first Bike Boulevards in Belmont, Bayswater and Mt Hawthorn.
The number of Authorised Inspection Stations nearly doubled in 2015-16 with 30 new stations in the metropolitan area.
11 projects were completed to improve WA’s regional airports.
The announcement of reforms to the On-demand industry will launch a new era for passengers and operators.
Stage 2 works commence on the $18.2 million Exmouth Boat Harbour upgrade.
$1 million Coastal Adaptation and Protection grants were made available for projects to preserve our coastline.
Financial Summary
DoT provides services to numerous stakeholders, clients and customers, aggregated into the following high-level service categories:
· Coastal Infrastructure;
· Marine Safety;
· On-demand Transport;
· Driver and Vehicle Services; and
· Strategic Transport Policy and Integrated Planning.
Gross expenses in 2015-16 totalled $381.01 million and the net cost of services, which takes into account operating revenue, was $47.96 million. The following charts illustrate gross expenses by service and expense categories.
Operating expenses by services $381.01 million
RoundedCoastal Infrastructure / 67,861
Marine Safety / 28,946
On-demand Transport / 25,534
Driver and Vehicle Services / 198,470
Strategic Transport Policy and Integrated Planning / 60,199
Operating expenses by category $381.01 million
Employee expenses / 137,169Supplies and services / 110,318
Depreciation and amortisation expense / 20,138
Accommodation expenses / 16,158
Grants and subsidies / 86,877
All other expenses / 10,350
DoT generates income from operating activities primarily in the areas of driver and vehicle services, management of coastal facilities, marine safety, parking levies in the Perth Central Business District (CBD) and regulation of the taxi industry.
Income by Category $333.06 million
User charges and fees / 269,870Sales / 137
Grants and subsidies / 9,885
Interest Revenues / 1,566
Assets assumed / 1,541
Other revenues / 50,059
This year DoT managed a diverse physical asset base totalling $469.97 million to deliver its services. The chart below shows the distribution by asset class.
DoT’s equity at 30 June 2016 was $709.58 million.
Assets under management $469.97 million
Property, plant and equipment / 169,163Infrastructure / 245,803
Intangible Assets / 27,079
Construction in Progress / 27,920
DoT also administers functions where the revenue is taken directly to the Consolidated Account or to other Government agencies. Total administered revenue from these functions totalled $2 billion in 2015-16, as illustrated below.
Administered revenues $2 billion
Motor vehicle registrations / 831,153Plate and transfer infringements / 8,954
Speed and red light infringement fines / 112,156
Stamp duty / 348,744
Third party motor vehicle insurance premiums / 680,066
Other / 16,566
Operational Structure
The Transport Portfolio
DoT is a key agency in the State Government’s Transport Portfolio, integrating and enhancing coordination of the State’s transport operations, regulatory functions and planning and policy development processes.
Throughout 2015-16, Reece Waldock concurrently held the positions of Director General – Transport, Chief Executive Officer of the PTA and Commissioner of Main Roads.
The structure of the Transport Portfolio is outlined in the Organisational Chart.
The Department of Transport
DoT delivers its services through two divisions – Policy, Planning and Investment (PPI) and Transport Services.
PPI provides strategic transport policy, integrated transport planning solutions and coordinated investment decisions in collaboration with key stakeholders, to assist in the development of a safe and sustainable transport system for the movement of people and freight.
Transport Services leads and manages the State-wide delivery of a number of specialist transport services, including driver and vehicle services, coastal infrastructure and marine and rail safety, while also regulating WA’s on-demand transport industry.
The core functions of each directorate that make up these divisions are outlined in the Organisational Chart.
Changes to the Department in 2015-16
DoT has established new business areas within DVS.
The new areas are:
· Business Reform;
· Strategy, Policy and Governance;
· Commercial and Partnerships – formally known as Revenue Management and Business Support; and
· Customer Service Delivery.
These will provide a realigned structure that will strengthen our accountability and customer focussed approach, align activities around our strategic plan and assist with the delivery of our reform plans to enhance DVS’ core purpose of Safe Drivers, Safe Vehicles, Secure Identities and Excellence in Service.
DoT also renamed its former Passenger Services Business Unit to On-demand Transport (OdT). This name change recognises the unit’s role will be delivered in a significantly changed environment.
Enabling legislation
DoT was established on 1 July 2009, under the Public Sector Management Act 1994.
Responsible Minister
Hon. Dean Nalder MLA, Minister for Transport.
Organisational Structure
Transport Portfolio
Department of Transport
Corporate Executive
Reece Waldock
Director General – Transport
As the head of the Transport Portfolio, Reece is responsible for setting the strategic direction of transport in the State, shaping the development of a number of major integrated transport plans and leading the implementation of some of WA’s most transformational capital projects.
With more than 35 years experience in strategic management, with particular expertise in organisational reform, his appointment as Director General – Transport in 2010 was the culmination of a 20-year journey within various State Government transport agencies including 14 years as a Chief Executive Officer. Prior to his public sector career, Reece held a number of senior management roles with BHP Billiton Pty Ltd.
Reece is also a Commissioner of the Western Australian Planning Commission (WAPC), Lifeline WA board member and a Director of the Australian Urban Design Research Centre.
Graeme Doyle
Managing Director – Policy, Planning and Investment
Graeme was appointed as Managing Director – Policy, Planning and Investment in April 2015. He brings a wealth of knowledge to the role with 36 years experience in the public sector and has been a valuable member of DoT’s Corporate Executive for five years, including in his previous capacity as Executive Director – Investment and Finance Coordination.
Graeme and his expert team provide policy advice, strategic transport solutions and coordinated investment decisions to State Government to assist in effective movement of people and goods. In doing so, Graeme ensures strong collaboration across the Transport Portfolio for a unified approach to planning and delivering WA’s transport services, infrastructure and systems.