1. itsr annual report 2013-14 - full report - 15 october 2014

Microsoft Word - 1. ITSR ANNUAL REPORT 2013-14 - Full report - 15 October 2014.docxExcellence in what we do and how we do it
Transparency with expected actions and no hidden agendas
Accountability including being open and honest and integrity in decision-making
Responsiveness in meeting expected timelines and providing feedback along the way
ITSR ANNUAL REPORT | 3
Parliament House Macquarie Street Sydney NSW 2000
Dear Minister
It is my pleasure to submit to you the Independent Transport Safety Regulator’s Annual Report 2013-14 for presentation to the NSW Parliament.
The report has been prepared in accordance with the requirements of the Annual Reports (Statutory Bodies) Act 1984, the Annual Reports (Statutory Bodies) Regulation 2000 and the Public Finance and Audit Act 1983.
Yours sincerely
About this report
This report details the 2013-14 financial year activities conducted by ITSR as an agency of the NSW Government and concurrently as the NSW Branch of the Office of the National Rail Safety Regulator. It includes regulatory and governance activities and financial management.
Information on ITSR’s regulatory performance is also reflected in the ONRSR Annual Report 2013-14.
Report © Independent Transport Safety Regulator 2014
This material may be reproduced in whole or in part, provided the meaning is unchanged and the source is acknowledged.
ISSN 1839-1567
October 2014
Contents
Overview
A summary of ITSR’s performance in 2013-14 and its governance structure
Performance Review A review of ITSR’s performance against its corporate objectives:
Objective 1 - ITSR contributes to NSW Government delivery of safe transport operations through independent advice
Demonstrates ITSR’s legislative mandate to provide independent advice to the Minister for Transport on railway safety issues
Objective 2 - Improving transport safety through regulation, innovation and advice
Demonstrates ITSR’s responsibilities as the NSW Branch of the Office of the National Rail Safety Regulator to regulate rail safety in NSW and engage with rail operators to continually improve their safety performance
Objective 3 – ITSR performance is maintained and continually improved
Demonstrates ITSR’s quality-based governance framework and practices, management structures, personnel policies, professional development initiatives and organisational culture.
Financials Financial information required under the Public Finance and Audit Act 1983
Appendices Material to support report content including information required under annual reporting legislation
Glossary Includes reference to ITSR-specific terms, national bodies and rail-related terms used in this annual report
Compliance index An index referencing the report’s compliance with annual reporting legislation
Issues index An index of general issues
OVERVIEW | 5
Who we are
ITSR is a separate public service agency within the NSW Government’s transport portfolio. ITSR reports directly to the NSW Minister for Transport while maintaining independence from Ministerial direction in relation to the exercise of its functions under Rail Safety National Law. ITSR also retains the function to provide independent advice to the Minister on rail safety under the Transport Administration Act 1988.
ITSR operates under a service level agreement as the NSW Branch of the Office of the National Rail Safety Regulator (ONRSR) in accordance with the NSW Rail Safety (Adoption of National Law) Act 2012. Whilst ITSR provides and contributes to regulatory services, ONRSR is accountable for rail safety outcomes within NSW.
What we do
Regulatory services ITSR provides under its service level agreement to ONRSR include:
assessment of accreditation applications, variation to accreditations and notifications of change
interface with operators on major rail projects to assist them with understanding their obligations under Rail Safety National Law.
audits, inspections and compliance enforcement
compliance investigations
provision of specialist technical advice
education and leadership to deliver improvements in safety management
monitoring of industry responses to recommendations flowing from independent rail safety investigations and inquiries.
ITSR utilises its capacity and experience as a NSW agency to contribute to the regulatory effectiveness of ONRSR through corporate functions of information management and technology, communications, safety policy and improvement, learning and development, and business planning and reporting.
Operating environment
ITSR is based in Sydney, although its rail safety officers travel regularly throughout NSW and interstate to conduct audits, inspections and compliance investigations of railway operations and to advise on and promote rail safety improvement.
The ITSR Chief Executive reports directly to the Minister for Transport.
OVERVIEW | 6
Our statutory framework
ITSR’s principal objective under the Transport Administration Act 1988 is to facilitate the safe operation of railway operations in NSW.
Under the Act, ITSR also has the following objectives:
to exhibit independence, rigour and excellence in carrying out its regulatory and investigative functions
to promote safety as a fundamental objective in the delivery of railway services.
The principal functions assigned to ITSR under the Transport Administration Act 1988 include:
a) to review and evaluate any matter related to the safe operation of railway operations
b) to advise the Minister, or make recommendations to the Minister about any matter related to the safe operation of railway operations
c) to exercise any functions conferred on the ITSR for the purposes of the Rail Safety National Law
d) to exercise any other functions conferred under an agreement entered into under this section.
Any matters concerning rail safety, including responses to public requests on safety information, are dealt with under the Rail Safety National Law. For other matters, the relevant NSW legislation applies.
Our resources
In 2013-14, ITSR employed 67 staff and had a budget of $16.8 million. ITSR’s primary costs are staff salaries and operational costs. It does not own property assets.
OVERVIEW | 7
Achieving corporate objectives Achievement of ITSR’s corporate objectives is measured through milestones and qualitative assessment.
The following table summarises ITSR’s corporate achievements for 2013-14.
Result Strategies Performance for 2013-14
Forward directions More detail
Objective 1:
ITSR contributes to NSW Government delivery of safe transport operations through independent advice
ITSR provides timely quality advice to the NSW Government on specific rail safety matters
Independent review of rail transport operations to ensure safety objectives are being met
Achieved
Ongoing p.30-32
Provision of advice to the Minister for Transport as appropriate on specific rail safety incidents, trends or operator-specific matters
Achieved
Report to the Minister on the effectiveness of national regulatory arrangements
Achieved
Improving rail safety through regulation, innovation and advice
ITSR supports the National Rail Safety Regulator in assuring that safety risk management in rail transport operations continues to improve and mature under Rail Safety National Law
Implementation of agreed national and NSW workplan safety priorities
Achieved
p.35
Lead promotion of safety improvement initiatives by the rail industry
Achieved
p.40
Work with the ONRSR to provide strategic support in areas of:
Policy formation
Internal communications
Media liaison
Achieved
Due to staff and structural changes, media liaison is now undertaken by ONRSR National Office
Policy and communications support continues.
Provision of governance support on IT, business system development and support and business planning and reporting services
p.41
Forward directions More detail
Develop and implement a national learning and development framework for ONRSR Rail Safety Officers
Development work achieved
Implementation of framework
p.41
ITSR supports the NSW Government’s delivery of major NSW rail projects and reforms
Monitor the development and introduction of major rail projects to ensure rail safety accreditation requirements are understood
Achieved
Assessed accreditation variations for the Inner West Light Rail extension and accreditation applications for North West Rail Link
Accreditations associated with the awarded proponents for North West Rail Link and CBD and South East Light Rail projects
p.42
Timely quality review of any new rail projects for safety accreditation
As above As required p.43
Objective 3:
ITSR performance is maintained and continually improved
ITSR supports continued levels of quality performance
Provide leadership and management of change to integrate NSW Branch activities and processes with Office of the National Rail Safety Regulator requirements
Achieved Ongoing p.46
Achieved Ongoing monitoring of workforce requirements
p.47
Provide learning and development for NSW Rail Safety Officers to achieve consistency and effectiveness of performance
Achieved, including development of a national framework
Ongoing p.47
Maintain and improve internal governance in accordance with better practice and NSW Government requirements
OVERVIEW | 9
Delivering to our stakeholders As a NSW Government agency, ITSR recognises that it is responsible and accountable for providing public value to its stakeholders as outlined below.
Stakeholder What we deliver
NSW Minister for Transport Regulation of rail safety in NSW under national rail safety legislation
Specialist advice and recommendations on rail safety issues
Contribution to ensuring effective governance under the national regulatory model
Community Independent monitoring of network-wide rail safety risks with the capability to address rail safety issues
Assurance that rail safety operations in NSW comply with the requirements of Rail Safety National Law
Office of the National Rail Safety Regulator
Rail safety regulatory services to administer Rail Safety National Law in NSW
Corporate and strategic support
(Government, commercial and tourist/heritage rail operators, rail employees)
Monitoring of industry application of rail safety legislation and industry rail safety standards
Assistance to improve safety risk management practices through practical advice and tools
Rail industry groups (unions, peak industry groups)
Liaison and information on rail safety issues
Transport for NSW
Staff Challenging work, competitive remuneration, progressive professional development and learning opportunities, and a positive culture
OVERVIEW | 10
Highlights
Timely processing of accreditation variations for the Inner West Light Rail extension and applicants’ accreditations for North West Rail Link using ITSR’s regulatory and specialist expertise (page 42-43)
Delivery of NSW regulatory activities in line with the coordinated National Operations work program (page 35)
Conduct of workshops in city and regional areas to build on industry knowledge- sharing from previous workshops and highlight identified significant road rail vehicle (RRV) risk factors (page 35)
Tailored work with individual operators on fatigue and human factors management practices (page 40)
Contribution of ITSR’s technical expertise to national rail safety regulatory service delivery (page 37-38)
Implementation of an integrated structure between ITSR and ONRSR to deliver NSW rail safety regulation (page11)
Maintenance of ITSR’s quality certification against ISO 9001 for its regulatory services (page 47)
Challenges
Engaging rail operators with variable experience on rail safety accreditation requirements for new rail projects
Maintaining and strengthening relationships with staff in the Office of the National Rail Safety Regulator
Dealing with transitional issues in relation to use of national systems
OVERVIEW | 11
Chief executive’s message During the year ITSR continued to work with ONRSR to monitor compliance with the Rail Safety National Law and support the national regulatory approach.
Resulting from the decision to operate under an integrated structure, the improved cooperation and collaboration between ONRSR and ITSR has delivered positive outcomes for the quality of rail safety regulation. Within this framework, ITSR has led complex regulatory tasks such as assessing accreditation of major industry rail projects and has worked in conjunction with ONRSR to address various rail safety issues from a national perspective, contributing knowledge and expertise that would have been previously applied solely within NSW for the benefit of NSW.
This year included leadership changes, with Len Neist moving on from the role of Chief Executive position and my appointment as Acting Chief Executive. Len’s substantial record of achievement included improving ITSR’s organisational capacity to analyse risks. He also liaised extensively with the Chief Executive ONRSR to build a collaborative, effective working relationship that supported implementation of nationally- based regulation, while ensuring ITSR maintained the capacity to deliver current levels of rail safety regulation in NSW.
The major challenge during the year was to work within our new operating context which was shaped through implementation of an integrated organisational structure with ONRSR designed to support effective delivery of rail safety regulation. Achievements during a year of significant change are credited to the professional approach and dedication of ITSR’s staff in embracing change and working to deliver effective rail safety regulation. Some of the achievements for 2013-14 are outlined below.
Accreditation of major new transport projects in NSW
A major focus during the year was on processing the variation to accreditation for the Inner West Light Rail extension and resolution of rail safety accreditation applications for the North West Rail Link.
The work by our staff in coordination of complex technical, regulatory and operational input by agencies and operators led to positive compliance outcomes for the designated proponents with required deadlines met.
Operation as the NSW Branch of the Office of the National Rail Safety Regulator
Under the national rail safety regulatory arrangement, ITSR operated as the NSW Branch of ONRSR delivering a comprehensive regulatory compliance program.
Under the banner of the NSW Branch of ONRSR, ITSR continued to provide quality support for NSW operators, liaising though the Branch Operations Forum and conducting targeted operator workshops to improve industry knowledge on road rail vehicle risk and fatigue risk management. Operators provided feedback that these interactions have contributed positively to improved safety practice.
Significant work also occurred through the integrated structure to support development of business processes and information systems for records and regulatory management. There is still more work to be done, particularly in ensuring that the value add from a comprehensive, well designed regulatory information system is realised.
OVERVIEW | 12
Change and improvement within ITSR
Good work occurred during the year on managing changes to reporting arrangements and accountabilities necessitated through working under the integrated structure with ONRSR. Extensive communication with staff was utilised to support this change and recognition needs to be given to how staff contributed their experience and knowledge to maintain the level of rail safety regulation in NSW and to share knowledge and experience to support ONRSR nationally. I remain committed to ensuring the highest levels of support for staff during this period of change.
Workplace improvement focused on implementation of a new integrated risk management framework and related training for staff in risk and safety assurance. The risk management framework added quality to our regulatory and governance functions as well as identifying significant improvements for management of our workplace health and safety management system.
Forward directions
At this point in time, ITSR continues to work under a Service Level Agreement to ONRSR and remains a NSW agency accountable to the NSW Minister for Transport. As detailed in this report, a review is being undertaken on the feasibility of full transition of ITSR’s functions to direct delivery by ONRSR. A key requirement for this to occur is that the framework of systems, policies, structures and support is in place to deliver regulatory functions to an equivalent level of rail safety regulation in NSW.
The professionalism of ITSR staff during this period of change has been exceptional and I thank them for maintaining their focus on delivering rail safety regulation in NSW. I also thank our executive staff for their hard work and leadership in building strong relationships with ONRSR staff and facilitating change within ITSR to support national integration.
This year, our focus will continue to primarily be on supporting ONRSR in delivery of their regulatory program with a particular emphasis on the rail safety accreditation of major new rail projects initiated by the NSW Government.
ITSR continues to be committed to providing the appropriate levels of rail safety regulation that the NSW Government requires for this State.
Paul Harris Chief Executive
As at June 30, the formal governance structure comprises:
Executive management team (EMT) supports the Chief Executive in day to day management of ITSR
the Executive leadership group (ELG) supports the Chief Executive in the effective ongoing management of ITSR including ensuring that regulatory activities under the service level agreement maintain necessary levels of safety regulation in NSW
the Independent risk and audit committee (IRAC) provides an assurance to the Chief Executive that effective risk management and audit processes are in place (see page 16).
Executive management team
Executive management team comprising of Chief Executive, Chief Operating Officer and Managing Director, Rail Compliance and Enforcement met regularly to ensure effective governance of ITSR.
Executive leadership group
The Chief Executive is also supported by the Executive leadership group (ELG), ITSR’s senior management group. During the year, the ELG reviewed and managed strategic and operational risks, discussed current and forward strategic directions and reviewed performance. A primary focus was the delivery of complex safety accreditations for major rail projects in NSW and ITSR’s service level agreement as the NSW Branch of the ONRSR. Members’ profiles are outlined below:
Paul Harris Chief Executive
Paul Harris (BCom, MPA) was appointed as Acting Chief Executive in January 2014 following his role as Executive Director, Corporate Services and Planning. Paul has extensive rail industry and public sector experience in corporate human resources and business services management roles. He has been responsible for implementing significant workplace reforms at the former State Rail and the Ministry of Transport and within ITSR.
OVERVIEW | 14
Simon Foster Chief Operating Officer
Simon Foster (GradDipMgmt, L&ESDCert, MAICD) brings over 30 years of technical and management experience in rail covering track, fleet, operations, stations and communications. He was appointed as ITSR's Executive Director Service Reliability in April 2004, Executive Director, Operations in May 2009 and to the new position of Chief Operating Officer in November 2012. Previously Simon worked at the Office of Coordinator-General of Rail. Simon has a Graduate Diploma in Management, a Land and Engineering Survey Drafting Certificate, and in 1988 was awarded a Bicentennial Fellowship in Management (the equivalent of a Churchill Fellowship). He has also successfully completed the ANZSOG Executive Fellows Program.
Colin Holmes Managing Director, Rail Compliance & Enforcement
Colin Holmes (GradCert Transport Safety, Cert Transport Mgt) was appointed Deputy Executive Director, Operations in July 2010 and as the NSW Branch Director from 2013. He has been with ITSR since it was established in 2004 and has held a number of senior safety management roles. Before joining ITSR, Colin spent nine years in senior management at the then Transport Safety Bureau in the former Ministry of Transport and has more than 10 years management and operational experience at the State Transit Authority.
Joseph Le Director, Safety Policy and Improvement
Joseph Le (BSc, BE) was appointed Director Risk Management Systems in April 2013 following a temporary appointment as a risk management specialist and then to his current position in February 2014. Joseph’s role through the integrated structure is Head of Safety Policy and Improvement. Prior to ITSR, Joseph worked for five years in Spain as a safety manager in Navantia, a Spanish naval engineering and shipbuilding company working on various naval development projects including the Air Warfare Destroyer and S-80 submarines. He has also worked as a consultant for Booz Allen Hamilton in Australia on projects such as the independent safety health check of NSW rail passenger services, for LR Rail on the implementation of a safety management system for Bangkok's underground train operator and other system safety programs and safety cases for complex, high risk, high integrity systems.
OVERVIEW | 15
Andy Webb A/Managing Director, Strategic Rail Projects
Andy Webb (MSc MIRSE FIEAust CPEng) took the acting position of Managing Director, Strategic Projects in July 2013, having previously supported ITSR’s safety improvement initiatives as an asset management specialist. Andy has over 25 years’ experience in the railway industry in maintenance and consulting roles in Australia, Asia and Europe and holds an MSc in Asset Management and Maintenance Engineering. During his career, Andy has been responsible for the delivery of signalling maintenance, railway infrastructure projects, asset management evaluations and certification audits, for organisations such as the Victorian Department of Transport, ScotRail, and Hong Kong’s Kowloon-Canton Railway.
Janet Peters Director, Systems and Business Improvement
Janet Peters (B Ed, M HR& IR, Grad Dip IR, Grad Cert Transport Safety) joined ITSR at its inception in 2004 to establish ITSR’s IT systems and was later appointed Manager, Corporate Strategy. Janet manages ITSR’s quality and business improvement program and is ITSR’s Chief Audit Executive. Prior to joining ITSR, Janet worked at the Workers Compensation Commission and WorkCover, primarily working in policy and legislative reform programs. Janet has a background in education, public policy making, law reform and the military. She has extensive experience in the NSW public sector in service delivery, management and policy.
OVERVIEW | 16
Independent risk and audit committee
The Independent Risk and Audit Committee enhances ITSR’s governance structure and ensures the agency conforms with NSW Government policy on audit and risk management. The committee which reports directly to the Chief Executive on matters of audit and risk, comprises two independent members and ITSR’s Chief Operating Officer and is supported by the role of Chief Audit Executive. The committee chairperson is Ken Barker who has over 40 years experience in public sector management and finance, including more than 20 years experience as Chief Financial Officer for NSW Health. During the year, Ken Barker was reappointed as Independent Chair and there was a changeover in independent member from Alex Smith, who served from July-September 2013 to Peter Ross, who commenced as the independent member from February 2014 onwards. During the year, the committee met four times and reviewed audit plans, outcomes of audits and progress with closing out of recommendations developed as a result of non- conformances identified through the audits conducted. The committee also provided strategic advice on governance matters, reviewed preparation and completion of ITSR’s year-end accounts and facilitated effective communication with the Audit Office of NSW. ITSR’s attestation on its compliance with the NSW Government’s internal risk and audit management policy is on page 108 of the Appendices. For information on ITSR’s internal audit program, see page 49.
Risk context
ITSR’s risk context links aspects of its external environment to its internal strategic needs and capabilities. Key drivers for 2013-14 included:
working under a service level agreement with the Office of the National Rail Safety Regulator to deliver safety regulation in NSW under national rail safety law
high levels of state and national investment in rail infrastructure projects creating opportunity for ITSR as NSW Branch of the ONRSR to ensure that safety considerations are built into the design and operation of new infrastructure
varied levels of rail industry experience, particularly through increases in contracting and sub-contracting which in turn increases the need to promote and enforce safety requirements
increasing demand for skilled transport staff, which continued to create succession challenges for industry and ITSR
population growth and economic pressures increasing societal needs for new and safe infrastructure
building and maintaining relationships with NSW transport portfolio staff given the nature of complex new accreditations
meeting staff needs for system support given the interface between NSW Branch and National Office systems.
OVERVIEW | 17
Risk management approach
ITSR is committed to risk-based decision making at all levels of our organisation and in all that we do. By assessing and managing our risks in a systematic, structured and timely way we are better positioned to achieve our primary legislative objective to “facilitate the safe operation of railway operations in NSW”. ITSR’s risk management practice, based on AS/NZS ISO 31000:2009, underpins our regulatory and strategic decision-making as well as our management of project and WHS- related risks using an integrated approach tailored to our operational context and a common risk language. The diagram below reflects ITSR’s holistic approach:
OVERVIEW | 18
Measuring industry and regulator performance
ITSR actively reviews the rail industry’s safety performance and its own regulatory performance using qualitative and quantitative information.
Rail industry context
As at 30 June 2014, there were 79 operators accredited by the National Rail Safety Regulator under Rail Safety National Law for operations in NSW.
Sydney’s urban passenger network comprises heavy and light rail. Heavy rail carries the majority of passengers, with 306 million passenger journeys per year and over 1790 track kilometres. Light rail operates 4.2 passenger journeys per million over approximately 15 track kilometres. The monorail ceased passenger operations in June 2013 and following a de-commissioning phase, surrendered its accreditation in August 2013.
Major networks operating in NSW include:
the Metropolitan Rail Area (MRA) is centred in Sydney under the management and control of Sydney Trains. It is used mainly by Sydney Trains urban passenger services but also carries intra and interstate freight trains. The MRA is the most heavily trafficked urban rail system in Australia with some 306 million passenger journeys per year over 1,790 track kilometres
the some 3,400 km of track managed by the Australian Rail Track Corporation (ARTC) under long term lease from the NSW Government which includes the Defined Interstate Rail Network as well as the inland route between Parkes and Werris Creek
the NSW Country Regional Network (CRN) which comprises approximately 2,800 km of track. It is owned by the NSW Government and, since January 2012, has been managed by John Holland Rail (JHR). The network is used primarily for bulk commodities such as grain but carries other freight and long distance passenger services
the NSW Hunter network managed by ARTC under a lease from the NSW Government. In July 2011, the leased area was extended from Werris Creek to North Star to incorporate existing rail lines servicing coal mines in the Gunnedah Basin, to cover approximately 1,100 track km. It is used primarily for transporting coal to the Port of Newcastle with some 155 million tonnes carried in 2013-14. It also carries intermodal freight as well as regional and long distance passenger services.
Dedicated metropolitan freight lines are relatively small in terms of their collective track length but serve a critical role in the effective management of the freight and passenger tasks in metropolitan areas. Sydney’s dedicated freight lines are managed by ARTC and consist of:
the Southern Sydney Freight Line (SSFL): the final stage of this line opened in January 2013. It is a 36 km dedicated freight line that links the DIRN at Macarthur with the Metropolitan Freight Network at Sefton Park Junction
the Metropolitan Freight Network: ARTC commenced operations of this network in August 2012. It connects with the SSFL and provides dedicated access for freight trains to the Main Northern Line near Strathfield, the Illawarra Line near Tempe, as
OVERVIEW | 19

Industry performance
Rail safety regulation aims to improve industry safety performance. Analysis of safety trends helps identify areas of success and where there is further need for regulatory action. A summary of the rail industry’s safety performance in NSW is outlined below. The data provides a positive indicator of the co-regulatory rail safety environment given decreasing trends in incidents occurring on the NSW rail network.
Planned results Results indicator
Improved rail safety performance
Passenger Decrease 0 3 2 1 2
Per million passenger journeys
Rail employee Decrease 2 0 0 0 1
Per million train kms
Running line derailment
Running line collision between trains
Decrease 6 7 6 5 3
Decrease 0.10 0.11 0.09 0.08 0.05
Level Crossing occurrences (road vehicle collision)
Decrease 8 10 9 5 1
Note that there is often a lag in reporting for any financial year which is corrected in the following year’s report. Full details or rail safety performance are published annually by ONRSR.
OVERVIEW | 20
Regulator performance ITSR’s performance results reflect its regulatory role and organisational governance activities. It measures its performance using a mix of key performance indicators measuring performance outcomes and operational measures reflecting service delivery.
Key Performance Indicators and service measures
The following key performance indicators and measures reflect the suite consistently reported against as ITSR. Data for 2013-14 represents ITSR’s input as the NSW Branch of the ONRSR. Data is for NSW only.
Regulatory compliance services in NSW
Service measures 09-10 10-11 11-12 12-13 13-14
No. of compliance inspections completed
382 177 171 92 97
No. of audits completed
No. of drug and alcohol investigations closed
16 20 13 28 13
Total no. of compliance activities
445 245 221 168 149
Comment:
The overall trending down of total compliance activities reflects declines in inspections and investigations. This was due to the need to allocate operational resources to major accreditations and variations, including those of Sydney Trains, NSW Trains, the North West Rail Link and Inner West Light Rail extension. It also reflects a focus on closing investigations and increased use of alternative regulatory activities such as monitoring and compliance enforcement. The number of audits rose due to ITSR’s participation in inter-state audits as well as a number of audits conducted pre and post major accreditations. The level of inspections and audits reflect those determined as part of the ONRSR National Operations work plan. Senior ITSR staff have input into the plan.
0
50
100
150
200
250
300
350
400
450
500
200910 201011 201112 201213 201314
No. of compliance inspections No. of audits
No. of compliance investigations No. of D&A investigations
OVERVIEW | 21
Key performance indicator
09-10 10-11 11-12 12-13 13-14
% of annual SPRs reviewed in which rail operators identified self- improvement safety initiatives
52% 76% 88% 86% 83%
Comment:
The steady higher rate of self-identified reporting of safety initiatives by operators in recent years reflects significant investment by ITSR in past years in ensuring that operators are aware of safety performance reporting obligations and increasing operator maturity on reporting. It is anticipated that this will continue.
In 2014-15, ONRSR’s head office in Adelaide will manage this review process nationally.
Drug and alcohol testing by industry in NSW
No. of alcohol tests by industry
63389 131857 163673 153744 207778
% of positive alcohol tests by industry
0.10% 0.04% 0.03% 0.05% 0.03%
No. of drug tests by industry
13247 18929 21315 20114 20030
% of positive drug tests by industry
1.04% 1.11% 0.75% 0.63% 0.44%
Comment:
Where a significant trend of positive results appears to be occurring under industry testing programs, ITSR as NSW Branch of the ONRSR liaises with the operator to determine whether any further action is required.
It should be noted that 41% of the positive drug tests were consistent with declared medication.
0
10
20
30
40
50
60
70
80
90
100
200910 201011 201112 201213 201314
% of annual SPRs reviewed in which rail operators identified self improvement safety initiatives
0.0
0.2
0.4
0.6
0.8
1.0
1.2
0
20
40
60
80
100
120
140
160
180
200
200910 201011 201112 201213 201314
Th o u sa n d s
No. of alcohol tests No. of drug tests % of positive alcohol tests % of positive drug tests
OVERVIEW | 22
No. of alcohol tests by ITSR
95 89 92 27 15
% of positive alcohol tests by ITSR
0.0% 0.0% 0.0% 0.0% 0
No. of drug tests by ITSR
45 32 11 20 10
% of positive drug tests by ITSR
0.0% 3.1% 0.0% 15.0% 10.0%
Comment:
Responsive testing was conducted by ITSR as NSW Branch of ONRSR based on safety intelligence received. The 10% positive drug test result reflects the one positive test result which was for a declared medication.
Industry testing results are reflected in the table above.
0
2
4
6
8
10
12
14
16
0
10
20
30
40
50
60
70
80
90
100
200910 201011 201112 201213 201314
No. of alcohol tests No. of drug tests % of positive alcohol tests % of positive drug tests
OVERVIEW | 23
100 120 102 74 140
No. of Improvement notices issued
37 14 4 1 0
No. of Prohibition notices
Comment:
*Previously ITSR issued Notices to Produce under the Rail Safety Act 2008. Following the introduction of the National Rail Safety Law 2012, this notice is now referred to as a Power to Obtain Information under section 20.
The increase in Notices to Obtain Information reflects the trend by industry requesting that a formal Notice to be issued before any information relating to incidents is provided to the Regulator.
ITSR issues notices under delegation as the NSW Branch of the ONRSR.
Requested review of notices in NSW
No. of Improvement & Prohibition Notices issued
40 15 7 3 0
No. of Improvement & Prohibition Notices where internal review was requested
1 1 0 0 0
% of Notices requested for review upheld
100% 100% n/a n/a n/a
Comment:
No requests by NSW operators for review of notices have been received since 2010-11.
Any requests for review are now determined by ONRSR National Office in Adelaide.
0
20
40
60
80
100
120
140
160
No. of Prohibition Notices
No. of Improvement Notices
0
10
20
30
40
50
60
70
80
90
100
0
5
10
15
20
25
30
35
40
45
200910 201011 201112 201213 201314
Total no of Improvement & Prohibition Notices issued
No. of Improvement & Prohibition Notices where internal review was requested % of Notices requested for review upheld
OVERVIEW | 24
% of recommendations from independent investigation rail accident reports closed
74% 82% 84% 92% 94%
Comment:
ITSR continued to facilitate the cumulative closure of independent investigation report recommendations.
It is proposed that this function will be transitioned to the Adelaide National Office of ONRSR. Until the transition is complete, ITSR will continue to facilitate the closure of existing recommendations.
ITSR’s corporate governance function
Key performance indicators
Employee stability rate (%)
Average sick leave taken per employee (hours)
40.6 44.3 38.5 40.3 43.47
Total number of injuries reported
2 4 3 1 1
Total number of claims
Total time lost (hours)
Comment:
ITSR’s decreasing stability rate reflects staff attrition levels during a period of significant organisational change with the establishment of the Office of the National Rail Safety Regulator.
Whilst ITSR maintains a low rate of work, health and safety incidents, a long term injury for one officer has required extensive time off work. ITSR has provided its full support for the officer.
0
10
20
30
40
50
60
70
80
90
100
200910 201011 201112 201213 201314
% of recommendations from independent investigation rail accident reports closed
0
20
40
60
80
100
200910 201011 201112 201213 201314
Employee stability rate (%)
200910 201011 201112 201213 201314
Average sick leave taken per employee (hours)
OVERVIEW | 25
Financial summary ITSR’s detailed audited financial statements are on pages 54.
Budget
ITSR’s net result of $1.9 million surplus was above the budgeted deficit $0.3 million for 2013- 14.
Expenditure
Staff costs totalling $11.2 million comprised the majority of the $14.7 million in expenses. This was lower than the employee related expenses budget of $13.6 million. Other operating expenses covering contractors, office accommodation, legal services, motor vehicle expenses, travel and administrative costs totalled $3.5 million, which was higher than the budgeted $3.2 million. Depreciation and amortisation increased to $118,000 compared with a budget of $63,000, following the acquisition of additional IT equipment. Staff costs included a 2.27% pay rise in accordance with the ITSR Award. Most of the under expenditure of $2 million was employee-related. Staff vacancies contributed $2.4 million to the under expenditure on employee-related costs. The increase in other operating expenses of $0.3 million results mainly from the increased use of contractors to compensate for staff shortages and additional travel requirements. Legal costs of $22,000 were substantially lower than last year due to the absence of any major prosecutions. Employee expenses were 9.3% higher than 2012-13 following the recruitment of graduate trainee rail regulatory staff and higher long service leave provisions. During the year a number of vacancies in ITSR were not filled as work requirements were covered through the integrated structure with the ONRSR. Lower expenditure and a higher net result resulted in a $3 million increase in current assets above the 2013-14 budgeted $3.5 million.
Revenue
ITSR is a budget dependent agency and does not generate any revenue from external sales. Revenue for 2013-14 totalled $16.6 million included ITSR’s allocated budget funding of $15.5 million as well as long service leave and superannuation funding from government totalling $883,000. Interest revenue was $132,000. Other miscellaneous revenue received included $101,000 in moiety and legal costs recouped from prosecutions from previous years.
Administered revenue
Under the new national legislative framework, ITSR ceased collecting regulatory fees from rail operators from 20 January 2013. Fees are now collected by the Office of the National Rail Safety Regulator (ONRSR) based in Adelaide. The ONRSR retains an agreed annual contribution to fund NSW’s share of the ONRSR’s National Office costs in Adelaide and returns funds over this amount to TfNSW.
OVERVIEW | 26
Financial performance
Revenue from other sources
Investment revenue 79 125 180 147 132 -10.2%
Total revenue 15,255 14,195 16,147 16,055 16,649 3.7%
Employee expenses 11,429 10,122 11,559 10,199 11,152 9.3%
Depreciation 431 317 278 223 118 -47.1%
Other expenses 3,457 3,272 3,227 5,507# 3,460 -37.2%
Total expenses 15,317 13,711 15,064 15,929 14,730 -7.5%
Operating result (loss) (62) 484 1,083 126 1,919 1,423.0%
Current asset A 2,540 3,474 4,797 4,320 6530 51.2%
Non-current asset B 879 635 412 275 267 -2.9%
Liabilities C 2,631 2,837 2,854 2,114 2,397 13.4%
Net assets = A+B - C 788 1,272 2,355 2,481 4,400 77.3%
Administered fees
3,428 3,343 3,046 3,702 - n/a -
* private siding registration fees commenced in 2011-12. From 20 January 2013, all regulatory fees are
collected by the Office of the National Safety Regulator (ONRSR). The ONRSR retains an agreed annual contribution to fund their National Office costs.
# includes a one-off grant to the ONRSR
PERFORMANCE REVIEW – OBJECTIVE 1 | 27
Organisational structure ITSR’s organisational structure below is as at end June 2014.
Chief Executive Len Neist (July 2013 – Jan 2014)
Paul Harris (Feb 2014 – June 2014)
Minister for Transport
Managing Director, Rail Compliance & Enforcement Colin Holmes
Director, Business Systems &
Improvement Janet Peters
Paul Harris (July 2013 – Jan 2014)
Managing Director, Strategic Rail Projects
Andy Webb
ONRSR Executive Compliance investigations
Safety improvement projects Safety policy development
IM&T Business system development Internal audit program Chief Audit Executive IRAC Secretariat
Forward directions During 2013-14, the Executive leadership group reviewed ITSR’s strategic risks with a focus on rail industry safety performance, new and recent rail projects, transitional issues with the ONRSR and ITSR’s workforce pressures and capabilities. This analysis provided the context for ITSR’s forward Corporate Plan for 2014-15.
Corporate Plan 2014-15 Objective 1: ITSR contributes to NSW Government delivery of safe rail operations through independent advice
Result ITSR provides timely quality advice to the NSW Government on specific rail safety matters Strategies
Provision of advice to the Minister for Transport as appropriate on specific rail safety incidents, trends or operator-specific matters
Report to the Minister on the effectiveness of national regulatory arrangements Objective 2: Improving rail safety through regulation, innovation and advice Result ITSR supports the National Rail Safety Regulator in assuring that safety risk management in rail transport operations continues to improve and mature under National Rail Safety Law Strategies
Implementation of agreed national and NSW work plan safety priorities Leadership and support for the development of strategic policy within ONRSR Leadership and support for safety improvement initiatives for the rail industry and
ONRSR staff Leadership and collaborative support in areas of IT management, development and
maintenance of business systems and business planning and reporting Chief Executive review of ITSR’s service level agreement with National Rail Safety
Regulator Continue to lead the development and implementation of a national learning and
development framework for ONRSR Rail Safety Officers Result ITSR supports the NSW Government’s delivery of major NSW rail projects and reforms Strategies
Monitor the development and introduction of major rail projects to ensure rail safety accreditation requirements are understood and incorporated
Objective 3: ITSR performance is maintained and continually improved
Result ITSR supports continued levels of quality performance Strategies
Provide leadership to support staff in the delivery of continued levels of rail safety regulation in NSW
Support staff in management of changes required for effective delivery of a national rail safety regulatory system
Ensure ITSR has access to and is equipped to effectively utilise national record management and IT systems
Maintain effective systems for the management of risk.
OBJECTIVE 1:
ITSR contributes to NSW Government delivery of safe transport operations through independent advice
Context
ITSR has an important independent function under the Transport Administration Act 1988 that enables the Chief Executive to review and evaluate any matter related to the safe operation of railway operations and advise or make recommendations to the Minister.
With the enactment of National Rail Safety Law, the accountability for rail safety outcomes transferred to ONRSR with ITSR accountable for delivery in NSW through the service level agreement established with ONRSR. As an enhancement to the arrangements under the service level agreement, ITSR has supported the effectiveness of the national regulator by contributing expertise and resources through an integrated organisational structure which includes ITSR representation on the ONRSR Executive and allocation of key management accountabilities to other ITSR executive staff.
Concurrent with responsibilities and working arrangements with ONRSR, ITSR is still accountable to the NSW Government for its performance as a NSW statutory body. Its primary stakeholders are the Minister, NSW Parliament and ultimately the public as the beneficiary of rail safety.
2013-14 performance
Reference
ITSR provides timely quality advice to the NSW Government on specific rail safety matters
Provision of advice to the Minister as appropriate on specific rail safety incidents, trends or operator-specific matters
Report to the Minister on the effectiveness of national regulatory arrangements
Independent advice on safe rail transport Within the context of this challenging environment, the strategies implemented by ITSR include independent review of rail transport safety outcomes to ensure safety performance levels are maintained, compliance with rail safety laws achieved and appropriate regulatory activities undertaken. If necessary, the Minister can be advised of any specific rail safety incidents, trends or operator specific matters. ITSR manages this function through its governance structure with the Executive leadership group (ELG) monitoring that NSW rail safety regulation is being effectively delivered. ELG members have the obligation to advise the Chief Executive of any unsatisfactory or adverse rail safety occurrences. Review by the ELG occurred in respect to major NSW rail safety accreditations including the Inner West light rail extension and the success of ONRSR in developing appropriate risk based regulatory programs and supporting systems, policies, guidelines and procedures. Collaboration with ONRSR between executives working in the integrated structures and between the Chief Executives was extensive with the mutually shared objective of ensuring appropriate rail safety outcomes through effective regulatory capacity. The level of cooperation meant that issues raised were able to be satisfactorily resolved. During the year, the liaison between Chief Executive’s covered review of the appropriateness and effectiveness of ITSR’s service level agreement arrangement. The Service Level Agreement which was amended in July 2013 to reflect the introduction of the integrated management structure included provision of support from ITSR for governance functions covering information systems development, business system support and the business planning and reporting functions. These are areas where substantial progress has been achieved due to the collaboration and cooperative working relationship achieved between ITSR and ONRSR. Report to the Minister on the effectiveness of national regulatory arrangements In May 2014, the Minister requested that Carolyn Walsh, an independent safety advisor engaged by ITSR, provide advice on the potential for direct delivery of NSW rail safety regulation by ONRSR. Ms Walsh has worked closely with the ITSR Chief Executive to identify issues that need to be considered in developing the advice requested by the Minister. Input from key stakeholders in TfNSW and the National Rail Safety Regulator as well as extensive consultation with ITSR staff has also occurred. The advice requested information on:
the potential for the national legislative framework to deliver an equivalent rail safety regulation scheme to that previously in place in NSW
the competence and capacity of the ONRSR’s organisational structure, together with its supporting systems and processes and its strategic direction to deliver service levels equivalent to those provided by ITSR
appropriate funding arrangements where NSW resources are applied to the benefit of
NSW and the potential for comparable arrangements for other jurisdictions entering the national scheme to ensure a fair, national system.
The advice is scheduled to be provided in September 2014.
OBJECTIVE 2:
Improving rail safety through regulation, innovation and advice Achievement highlights
Timely accreditation variations processed for the Inner West Light Rail extension and applicants’ accreditations for North West Rail Link using ITSR’s regulatory and specialist expertise (page 42)
Delivery of NSW regulatory activities in line with the coordinated National Operations work program (page 35)
Workshops held in city and regional areas to build on industry knowledge-sharing from previous workshops and highlight identified significant road rail vehicle (RRV) risk factors (page 35)
Tailored work conducted with individual operators on fatigue and human factors management practices (page 40)
ITSR’s technical expertise contributes to national rail safety regulatory service delivery (page 37).
Context
This objective is achieved through ITSR’s rail safety regulatory functions as delegated by the National Rail Safety Regulator to implement national rail safety law in NSW under a service level agreement. It includes the provision of rail safety accreditation, compliance monitoring, technical specialist advice, compliance investigation, drug and alcohol management and safety improvement activities to the ONRSR. This work provides an assurance to the NSW Government and the public that rail safety is being monitored and maintained in NSW.
2013-14 performance Result:
Reference
ITSR supports the National Rail Safety Regulator in assuring that safety risk management in rail transport operations continues to improve and mature under national rail safety law
Implementation of agreed national and NSW work program safety priorities
Achieved
p.35
Lead promotion of safety improvement initiatives by the rail industry
Achieved
p.40
Work with ONRSR to provide strategic support in areas of:
• policy formation
• internal communications
• media liaison
Achieved
Due to staff and structural changes, media liaison is now undertaken by ONRSR National Office
Continued policy and communications support
Provision of governance support on IT, business system development and support and business planning and reporting services
p.41
Develop and implement a national learning and development framework for ONRSR Rail Safety Officers
Development work achieved
Implementation of framework
p.41
ITSR supports the NSW Government’s delivery of major NSW rail projects and reforms
Monitor the development and introduction of major rail projects to ensure rail safety accreditation requirements are understood
Achieved
Assessed accreditation variations for the Inner West Light Rail extension and accreditation applications for North West Rail Link
Accreditations for awarded proponents for North West Rail Link and CBD and South East Light Rail projects
p.42
As above As required p.43
Implementation of agreed national and NSW work program safety priorities
Participation as members of the National Operations Committee The National Operations Committee (NOC) is a key operational decision-making body of the ONRSR comprising senior operational staff from National Office and Branch Offices. It includes two senior ITSR staff, the Chief Operating Officer and Managing Director, Rail Compliance and Enforcement. The NOC oversights the preparation and implementation of the National Operations work program, discusses arising operational matters and is the vehicle for coordinating a consistent approach to regulation. National Operations work program The National Operations work program comprises a schedule of risk-based audits and inspections of NSW operators aligned with a nationally coordinated schedule for inter- jurisdictional operators. Targeted audits and inspections are based on specific industry safety risks identified through safety performance data and ONRSR rail safety intelligence. One specific safety risk targeted during 2013-14 was that of road rail vehicles (RRV). Over the past five years, there has been an increased number of uncontrolled movements of RRV’s resulting in collisions with trains, road vehicles, people and infrastructure. During the year, ITSR supported ONRSR in obtaining operator information on the extent of their road rail vehicle operations and the nature of operator concerns which informed its communication strategy. The main issues identified were lack of engineering and operating standards, consistency of training and competency requirements for the operation of RRVs, track manager requirements and maintenance (competency of maintainers and service levels). A number of information sessions were held in regional areas to inform railway staff in senior and front line positions in NSW, South Australian and Tasmania. In NSW, these included Sydney, Newcastle, Dubbo and Wagga Wagga. Ensuring greater awareness of road rail safety risks is a first step in ONRSR’s approach. A longer term aim is to facilitate greater industry leadership on the development of a standard for road rail safety risk management. ONRSR intends to continue this work into 2014-15 through a mix of communication and enforcement activities. See page 20 for NSW operational measures.
Supporting regulatory services ITSR continued to provide regulatory support as the NSW Branch of ONRSR on a range of additional functions as outlined below.
Accreditations of rail operators
The Rail Safety (Adoption of National Law) Act 2012 requires rail transport operators (RTOs) to be either accredited or assessed as exempt from accreditation by the regulator. RTOs are defined in legislation as a rail infrastructure manager and/or rolling stock operator.
Accredited operators who operate in NSW need to notify ONRSR of operational changes that could require a variation to their accreditation. They also need to continue to demonstrate to the regulator that they have and maintain the competency and capacity to manage the safety risks of their operations to meet rail safety legislative requirements. ITSR provides accreditation advice to the ONRSR head office in Adelaide. See page 98 for the list of accredited operators in NSW as at end June 2014. For details on accreditation work on major new NSW Government projects, see page 42.
Compliance investigations
ONRSR responds to rail safety incidents and emergency events to ensure public safety and identify any work required to rectify or improve safety management as well as to determine whether rail safety legislative breaches have occurred. Branch offices respond to localised incidents. Regulatory services on compliance investigations, provided by ITSR under the service level agreement with ONRSR, are delivered under the banner of ONRSR. The function to coordinate investigations nationally is located in the Sydney ITSR office and oversighted by ITSR’s Chief Operating Officer who is an ONRSR Executive member.
During the year, a number of incidents in NSW required response. These included the following:
in July 2013, an incident at Newcastle occurred whereby a train entered track which had been officially granted protection for rail workers to remove litter from the tracks. Whilst communications between the train driver and the workers ensured that no injuries or damages to track resulted, ONRSR subsequently conducted an investigation into the incident. The investigation is now complete and the appropriate regulatory response is being determined.
in July 2013, information posted by an operator’s rail employees on Facebook indicated breach of certain safety controls whilst a train was being loaded at a coal loading facility. ONRSR’s completed investigation notes that the operator has taken appropriate steps to improve security arrangements surrounding the safety controls and the means by which they can check the safety controls are functioning correctly.
in July 2013, an incident near St Leonards and Waverton stations in Sydney occurred whereby a misunderstanding by operator staff led to a safety control order for protection of maintenance track workers not being correctly actioned and allowing a train to run where the work was being conducted. The work team were alerted with no mishap and moved to a safe place. ONRSR has completed its inquiries into these incidents and is currently reviewing the operator’s plans to address the nature of those incidents.
in January 2014, a low-speed derailment near Edgecliff station resulted in a piece of angle-iron piercing the floor of a passenger carriage.
While no passengers were physically harmed the incident was alarming to many of the passengers in the vicinity. Subsequent investigations have revealed that the derailment was caused by a faulty train axle. ONRSR’s investigation, which has been finalised, noted that the operator responded appropriately to the axle problem by removing all affected axles from service. ONRSR is now engaging with the operator to review the way in which they respond to incidents on their network.
in July 2013, a freight train derailed whilst being propelled into a siding at Goulburn resulting in significant damage to the rail infrastructure of an adjourning rail heritage operator as well as a number of wagons on the train. A compliance investigation has been conducted to determine if the rail operator and its employees have implemented the operator’s safety management system (SMS) or if there were deficiencies with the SMS. The investigation is currently being finalised.
in February 2014, a passenger train derailed in Currabubula, NSW, as a result of travelling over a track buckle. A number of passengers were taken to hospital with minor injuries and one passenger sustaining a fractured shoulder. A compliance investigation was commenced to determine the facts surrounding the incident and compliance with the relevant safety management systems. The investigation is ongoing.
in April 2014, a freight train derailed west of Tarcoola (Malbooma) South Australia due to a track washaway after a severe rain storm. This is the fourth incident of this type in five years that has occurred in a remote location. The previous incidents occurred in NSW, Western Australia and the Northern Territory and are the subject of an investigation by the Australian Transport Safety Bureau. ONRSR has commenced a compliance investigation which will look into the degree to which ‘lessons’ from the previous incidents have been incorporated in to the safety management systems of the rail infrastructure manager and applied in the field. The investigation is ongoing. This is the first compliance investigation to be commenced outside of NSW involving both ITSR and National Office staff.
in May 2014, a derailment of a freight train at Nambucca Heads, on the NSW North Coast, led to extensive damage to track and two bridges. ONRSR’s inquiries into the incident are continuing with a focus on reviewing the operator’s compliance with its safety management system. The investigation is ongoing.
Provision of technical expertise Whilst the primary focus of ITSR work under the service level agreement with ONRSR is on the provision of services for NSW rail safety outcomes, there has been opportunity and benefit to all parties in its contribution to national rail safety regulatory service delivery by ONRSR, particularly in respect to ITSR’s technical expertise. Such contributions have included advice and support on:
the development of Rail Industry Safety and Standards Board (RISSB) standard for road rail vehicles (RRV's) using bow ties and other assessment tools developed previously by ITSR
the technical and engineering systems aspects of the variation submitted by
Australian Rail Track Corporation (ARTC) for the progressive implementation of its Advanced Train Management System (ATMS) for the Defined Interstate Rail Network (DIRN)
review of draft Australian Transport Safety Bureau (ATSB) reports sent to ONRSR for
comment
the continued operation of Melbourne suburban carriages that are not currently fitted with traction interlocking for the Victorian Branch of ONRSR
the technical and engineering systems aspects of the variation submitted by ARTC
for the progressive implementation of its Phoenix Train Order System (PTOS) for its non-DIRN corridors in NSW and Victoria
review of accreditation issues associated with new electrification works for the Office of the Rail Commissioner, South Australia
technical aspects of track restoration of the Tasmanian West Coast Wilderness
Railway
technical advice to support ONRSR’s safety alerts on risks associated with coupling systems and brake systems fitted to infrastructure, trolleys and trailers, structural fatigue failure of the wagon underframe and the thermal (or metal) spraying of axles. See the ONRSR website for the alerts at www.onrsr.com.au
changes proposed by ARTC on the frequency of inspections of crossing loops by the
AK Car on the East – West section of the DIRN.
Review of operator performance reports
Rail transport operators must submit annual safety performance reports outlining their performance and safety initiatives planned and implemented. Receipt of such reports on time and in compliance with the reporting requirements is considered as an indicator of a positive safety culture. During the year, NSW Branch received 92% of the 75 reports due and reviewed 64 of those. See also the performance indicator on page 21.
Drug and alcohol testing program
Rail transport operators have primary responsibility for conducting drug and alcohol testing of employees undertaking rail safety work in NSW. Under the Rail Safety National Law (RSNL), it is an offence to conduct rail safety work under the influence of drugs or alcohol. To enforce this, the ONRSR has established a drug and alcohol (D&A) testing program to test that rail safety workers are complying with legislative requirements and are not undertaking rail safety work whilst under the influence of drugs or alcohol. This program complements rail transport operator and police testing. The D&A testing program consists of post-incident testing of rail safety workers in response to notifiable occurrences classed as Category A under RSNL (for example, fatal accidents, derailments, collisions, etc) and programmed (non-incident related). Programmed testing includes both intelligence-led risk-based testing and random testing. All drug and alcohol testing is now coordinated through the ONRSR.
NSW Branch Operator Forum
A focus for the NSW Branch is the conduct of a NSW Branch Operations Forum. The Forum comprises nominated rail industry representatives including rail infrastructure managers, rolling stock operators and union representatives
The forum discuss general industry-level compliance issues to inform ONRSR's regulatory strategies, reviews and provides input to safety improvement initiatives developed by the ONRSR and provides a link with other rail industry consultative committees such as the ONRSR's CEO Industry Reference Group and the Rail Industry Safety and Standards Board's Safety Managers Group.
During the year, the forum met twice (November 2013 and April 2014). A central focus for these meetings has been work progressed by ONRSR, RISSB, industry collectively and by specific operators on safety initiatives including for road rail vehicles and general issues associated with the ongoing transition to national rail safety regulation.
Monitoring implementation of independent investigation recommendations
Waterfall Rail Accident Special Commission of Inquiry
The final report of the Special Commission of Inquiry into the Waterfall Rail Accident was released on 17 January 2005. The report made 127 recommendations involving 177 specific safety or regulatory actions. Since its inception, ITSR has monitored the implementation of the Waterfall Inquiry recommendations and reported quarterly to NSW Parliament on progress. Following the publication of the 33rd quarterly report in April 2013, the Minister for Transport accepted ITSR’s recommendation to change the frequency of public reporting from quarterly to annually given that the majority of recommendations are now either closed or subject to a long term implementation plan. As at 30 June 2014, 175 recommendations were verified and closed, representing 99% of the total. The two recommendations remaining open are Recommendation 32 (Automatic Train Protection) and Recommendation 38 (Compatibility of Communications Systems). Full details on the status of the two remaining open recommendations are available in the report on the ITSR website.
Other independent investigation reports
Independent investigations into rail incidents are conducted by Office of Transport Safety Investigations (OTSI), the Australian Transport Safety Bureau (ATSB) and the NSW Coroner. Prior to the establishment of ONRSR, ITSR provided a monitoring function provides an assurance that issues raised by the various investigating agencies are being addressed by the nominated parties. NSW Branch continued this function during 2013-14 with ONRSR to coordinate this function nationally in 2014-15. The key performance indicator on page 24 provides closure rates for report recommendations.
Lead promotion of safety improvement initiatives by the rail industry Facilitating industry safety improvement is a key objective for the regulator under the Rail Safety National Law. In recognition of the importance of the safety improvement function, ITSR has committed substantial resource to ONRSR’s safety policy development and safety improvement programs during the year.
As part of the ITSR-ONRSR integration, ITSR staff have been instrumental in delivery of innovative strategies to improve industry’s safety performance by:
tailoring solutions to the scope and risk context faced by the rail industry working closely with industry collaborating and sharing risk-intelligence with National Operations being at the forefront in policy development, safety systems technology & research
and program & project management.
Participation as members of the Data and Policy Committee (DPC)
The DPC is led by the ONRSR Chief Executive and comprises ONRSR Executive Directors responsible for Policy & Safety Improvement, Operations and Technical together with appropriate senior management from those areas. It includes two senior ITSR staff, the Chief Operating Officer and Director, Safety Policy and Improvement. The DPC reviews safety intelligence on emerging issues, establishes safety improvement initiatives, identifies areas for policy, legislative and guideline development, oversees the drugs and alcohol testing program, the development of the Annual Safety Report and safety bulletins
Safety Improvement Projects
During 2013-14, ITSR staff led numerous safety improvement projects, one of which was to visit, discuss and work with rail transport operators across multiple states on better ways to manage fatigue-related hazards. The project worked closely with ten operators (five of which were NSW-based) to assist them understand their requirements under the RSNL in relation to fatigue risk management and share good practice amongst industry. In a similar manner, ITSR staff will collaborate with ONRSR staff from across Australia to run a similar project on Human Factors Integration.
ITSR has also committed substantial investment in the development of an SMS tool for ONRSR rail safety officers. The tool’s main aim is to standardise how SMS’s are assessed. The project is currently in a trial period to understand if it is fit for full development.
Forward Direction
With an exciting period ahead for ITSR-ONRSR collaboration, staff from ITSR will be at the forefront in ONRSR’s safety strategy development, legislative and policy reviews, education and advisory initiatives and delivery of innovative tools and guidelines for the rail industry.
Work with ONRSR to provide strategic support in areas of:
policy formation internal communications media liaison.
In July 2013, ITSR moved into an integrated structure with ONRSR to enable clear role definition, clarify accountabilities within the ONRSR context and enhance relationships and teamwork.
In addition to providing its regulatory operational services under a Service Level Agreement, it was recognised that ITSR contribution in supporting governance functions would provide value for both ITSR and ONRSR functions. It was agreed earlier in 2013-14 that such areas would include policy formation, internal communications and media liaison.
During 2013-14, ONRSR developed a Safety Improvement Policy which sets the framework for ONRSR’s safety improvement functions under Rail Safety National Law. It identifies the overarching principles and vision guiding the conduct of ONRSR safety improvement activities as well as specific activities. The policy is available on the ONRSR website at www.ONRSR.com.au
ITSR staff continued to contribute to the ONRSR policy agenda. During the year, ITSR staff assisted the development and review of a wide range of ONRSR policies through senior staff membership of the ONRSR Data and Policy Committee. In addition, ITSR staff also contributed to drafting internal guidance on a document control framework. In 2014-15, as part of ONRSR’s policy and safety improvement team, ITSR staff will undertake a review of ONRSR’s external policies to ensure they remain current and reflect industry and ONRSR regulatory needs.
ITSR also provided staff to support internal communications within ONRSR with substantive work conducted to build the ONRSR Intranet and provide regular e-news to staff.
The evolving context over the year has led to transferring the delivery of media liaison services to ONRSR’s National office in Adelaide. It was also recognised that it would be beneficial to expand the provision of ITSR support to other areas including IT development, business development support and business planning and reporting. This has enabled the ONRSR to further progress its organisational development and support its regulatory functions.
Develop and implement a national learning and development framework for ONRSR Rail Safety Officers ITSR has led to the development of a national framework to categorise the competency and capability of ONRSR Rail Safety Officers. The framework assists RSOs develop their skills and capabilities as well as assisting ONRSR senior managers appropriately allocate staff to required regulatory service delivery across Australia and inform their decisions on appropriate learning and development required for staff. Individually tailored programs will be devised for each RSO.
As part of this work, NSW Branch provided basic training to Western Australian Rail Safety Officers in Sydney. A learning program was subsequently developed that tailored to their
specific needs using material already available within the ITSR Graduate Trainee program.
Monitor the development and introduction of major rail projects to ensure rail safety accreditation requirements are understood Regulatory services on major rail projects are co-ordinated under the banner of ONRSR. The function to coordinate major rail projects nationally is located in the Sydney ITSR office and oversighted by ITSR’s Chief Operating Officer who is an ONRSR Executive member.
During 2013-14, a major focus for ITSR as the NSW Branch of ONRSR included accreditation applications for the North West Rail Link (NWRL) and an accreditation variation for the Inner West Light Rail extension as outlined below:
North West Rail Link (NWRL)
Scheduled to commence operation in 2019, the NWRL will operate from Chatswood to Rouse Hill in Sydney and includes construction of 8 new stations, 15 km of tunnels between Epping and Bella Vista and 4 km of elevated viaduct from Bella Vista to Rouse Hill. It will be the first major passenger railway in Sydney to feature driverless operations.
ONRSR continues to meet regularly with NWRL representatives to ensure rail safety accreditation requirements are clearly understood and incorporated into the project plans that facilitate the construction, procurement and commissioning phases of the project. In early June 2014, ONRSR completed preliminary accreditation assessments of the two proponents bidding to operate the NWRL. Through 2014-15, ONRSR will be engaging with Transport for NSW (TfNSW) and the appointed operator to progress this important project.
Inner West Light Rail Extension (IWLRE)
Commissioned in March 2014, the IWLRE extends the Sydney Light Rail network from Lilyfield to Dulwich Hill and is the first step in the NSW Government’s plans to expand light rail in Sydney. The project included a 5.6 km extension of the light rail tracks, 9 new light rail stops, procurement and lease of new light rail vehicles, construction and installation of power, safety, communications and signalling systems and expansion of the existing light rail stabling facilities.
From July 2013 to March 2014, as the NSW Branch of ONRSR, staff engaged extensively with Transdev Sydney and TfNSW to support the safe introduction of the new passenger services to Dulwich Hill. This involved ONRSR approving staged changes to Transdev Sydney’s accreditation in line with the project plans, as well as monitoring compliance with TfNSW’s accreditation requirements.
In addition to these projects, liaison with TfNSW on the CBD & South East Light Rail (CSELR) commenced. The project will extend the existing Sydney light rail network to include Circular Quay and the south east including Moore Park and the University of NSW.
During the year, preliminary engagement with TfNSW in relation to rail safety accreditation requirements and the tendering phase to select an operator was undertaken. This engagement will continue during 2014-15, with TfNSW and the appointed operator to progress this important project.
Monitoring of Special Conditions
ITSR as the NSW Branch of ONRSR continued to monitor Transport for NSW’s implementation of its accredited safety management system, particularly in relation to the North West Rail Link and Inner West Light Rail projects. Constructive engagement with Transport for NSW was welcomed and NSW Branch supports their initiatives to further develop quantitative safety risk assessment techniques and safety assurance processes.
Major Project Guidance
In the final quarter of 2013-14, NSW Branch has been supporting the ONRSR in developing industry guidelines to support successful variations to accreditation for major railway projects in Australia. Working from its experience in NSW, NSW Branch has been able to share good practice within ONRSR whilst also benefitting from the sharing of regulatory practices in other States.
There are a number of significant projects in NSW that will be in the delivery phase during 2014-15, for example the roll-out of Automatic Train Protection and Digital Train Radio. Regulatory oversight will be continued by working with Transport for NSW and the rail operators, Sydney Trains and NSW Trains to ensure safe outcomes are achieved for such projects as they are designed, installed and commissioned into passenger service.
NSW Branch anticipates that new railway transport operators will be selected for both the North West Rail Link and the CBD & South East Light Rail projects in 2014-15. Both operators will require accreditation under the Rail Safety National Law and NSW Branch will be working closely with the successful parties in their development of safety management systems to support rail safety accreditation.
NSW Branch notes that the Australian Rail Track Corporation (ARTC) is proceeding with the Inland Rail Link project that will increase freight capacity between Melbourne and Brisbane. NSW Branch has attended an initial industry briefing on this important project and looks forward to further engagement with ARTC throughout 2014-15 as the safety requirements for the project develop.
Beyond NSW, NSW Branch remains involved with the Automatic Train Management System (ATMS) project that is being implemented by ARTC and is planned to deliver increased national network capacity and service reliability. ATMS achieves this by providing on-board train control using wireless and GPS technology that provides train position measurement and train completeness reporting.
Currently at Phase 2, ATMS is conducting testing on 25km of ARTC controlled track from Crystal Brook to Stirling North in South Australia. During 2014-15, NSW Branch will continue to support ONRSR in its engagement with ARTC including reviewing the project’s safety assurance activities and undertaking accreditation activities as appropriate. The experience gained during Phase 2 will assist NSW Branch when work on ATMS is commissioned within NSW.
Future directions
Corporate priorities for this objective in 2013-14 are: Result: ITSR supports the National Rail Safety Regulator in assuring that safety risk management in rail transport operations continues to improve and mature under Rail Safety National Law
Strategies
Implementation of agreed national and NSW work plan safety priorities
Provide leadership and support for the development of strategic policy within ONRSR
Provide leadership and support for safety improvement initiatives for the rail industry and ONRSR staff
Provide leadership and collaborative support in areas of: - IT management - development and maintenance of business systems - business planning and reporting
Chief Executive review of service level agreement with National Rail Safety
Regulator
Continue to lead the development and implementation of a national learning and development framework for ONRSR Rail Safety Officers.
Result: ITSR supports the NSW Government’s delivery of major NSW rail projects and reforms
Strategies
Monitor the development and introduction of major rail projects operational performance to ensure safety accreditation requirements are understood and incorporated
Timely quality review of any new rail projects for safety accreditation.
OBJECTIVE 3:
Context
ITSR maintains corporate governance through its management structure, support functions and systems which are implemented through a governance and quality management system. Effective corporate governance is achieved by having well defined management accountabilities, robust planning and reporting activities, well-documented business systems, effective reporting, and an internal audit system that facilitates ongoing measurement, analysis and improvement. As a publicly-funded agency, ITSR operates within the policy and financial directions of the NSW Government. This occurs concurrently with ITSR staff working under the banner of NSW Branch to the Office of the National Rail Safety Regulator and operating in line with national rail safety legislation. Key challenges included attracting skilled staff; effectively equipping rail safety officers to deliver regulatory enforcement; and ensuring continuous improvement in a time of significant organisational change.
2013-14 performance Priority: ITSR performance is maintained and continually improved.
Desired results Strategies Status Forward directions
Reference
ITSR supports continued levels of quality performance
Provide leadership and management of change to integrate NSW Branch activities and processes with Office of the National Rail Safety Regulator requirements
Achieved Ongoing monitoring of workforce requirements
p.47
Provide learning and development for NSW Rail Safety Officers to achieve consistency and effectiveness of performance
Achieved under national learning and development framework
Ongoing p.47
Maintain and improve internal governance in accordance with better practice and NSW Government requirements
Leadership and management of change
The transition to operating as the NSW Branch of the Office of the National Rail Safety Regulator (ONRSR) under a service level agreement was supported through an extensive communication strategy involving staff briefings, Chief Executive messages and regular intranet news. A coaching program was provided for Executives and senior managers during the year to support their effectiveness during changes to operate under a National regulatory framework. The commencement of the review of issues for direct delivery of NSW rail safety regulation by ONRSR involved detailed communication with staff. This included a presentation by Carolyn Walsh, and independent safety advisor, at a staff briefing and circulation to staff of a paper that canvassed the issues that needed to be addressed in providing advice to the Minister. In providing a further avenue for staff input, a series of one on one and group meetings of staff with Ms Walsh were arranged. A register of issues raised by staff was also initiated, with this register initially used to validate that all issues that needed to be addressed had been. Should the Minister determine that transition to direct delivery by ONRSR is the best option for NSW, the staff issues register will provide the foundation for determining information staff will require for the change and areas where consultation will be needed. A survey of staff was also undertaken to assess the occurrence of workplace bullying. The survey found levels of this unacceptable behaviour similar to the broader public service and resulted in plans for training staff and managers on both how to best prevent this occurring as well as how to address an incident if one occurs. Training was also provided to all staff to reinforce the requirements of the ITSR Code of Conduct and Ethics. This training particularly focused on the requirement to maintain an equitable workplace where behaviour is of the highest standard and reflects ITSR’s values of independence, excellence, transparency, accountability and responsiveness. Strategies that ITSR has developed and supported since its inception to ensure that it provides a workplace of choice include:
regular communication through staff briefings and Chief Executive messages to keep staff abreast of developments, including changes to operational policies and processes and transitional issues
a performance development and evaluation scheme that provides for regular discussion of individual performance between staff and their managers, including constructive feedback and identification of personal and career development needs
professional learning and development opportunities based on organisational and individual needs
a workplace culture that respects family and life commitments, facilitates learning in formal and informal environments and creates a sense of community.
Graduate Trainee Program
ITSR needs to ensure availability of staff to meet rail safety regulatory requirements. Howeve

1. itsr annual report 2013-14 - full report - 15 october 2014

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