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
Per million train kms
Running line collision between trains
Decrease 6 7 6 5 3
Per million train kms
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
Service measures 09-10 10-11 11-12 12-13 13-14
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
Service measures 09-10 10-11 11-12 12-13 13-14
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
Service measures 09-10 10-11 11-12 12-13 13-14
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
Service measures 09-10 10-11 11-12 12-13 13-14
% 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
PERFORMANCE REVIEW – OBJECTIVE 1 | 28
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
Independent review of rail transport operations to ensure safety
objectives are being met
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
Timely quality review of any new rail projects for safety
accreditation
PERFORMANCE REVIEW – OBJECTIVE 1 | 29
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 30
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
Independent review of rail transport operations to ensure safety
objectives are being met
Achieved Ongoing p.31
Provision of advice to the Minister as appropriate on specific rail
safety incidents, trends or operator-specific matters
Achieved Ongoing p.31
Report to the Minister on the effectiveness of national regulatory
arrangements
Achieved Ongoing p.31
PERFORMANCE REVIEW – OBJECTIVE 1 | 31
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
PERFORMANCE REVIEW – OBJECTIVE 1 | 32
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 33
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 34
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
Timely quality review of any new rail projects for safety
accreditation
As above As required p.43
PERFORMANCE REVIEW – OBJECTIVE 1 | 35
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 36
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 37
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
PERFORMANCE REVIEW – OBJECTIVE 1 | 38
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 39
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 40
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 41
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
PERFORMANCE REVIEW – OBJECTIVE 1 | 42
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 43
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.
Timely quality review of any new rail projects for safety
accreditation
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.
PERFORMANCE REVIEW – OBJECTIVE 1 | 44
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.
PERFORMANCE REVIEW – OBJECTIVE 2 | 45
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 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 under national learning and development framework
Ongoing p.47
PERFORMANCE REVIEW – OBJECTIVE 2 | 46
Maintain and improve internal governance in accordance with better
practice and NSW Government requirements
Achieved Ongoing p.47
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
PERFORMANCE REVIEW – OBJECTIVE 2 | 47
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