A comprehensive review of ARTC’s business
strategy has been undertaken by the Board
and Executive team to position the Company
for growth following an unprecedented
period of investment in the Interstate and
Hunter Valley networks.
Since the establishment of ARTC the key
challenge has been to expand the rail
network under ARTC control to provide a
seamless “one-stop-shop” for our customers
and to successfully deliver a large capital
works program. Since 2004, ARTC has
invested around $5 billion into the Interstate
and Hunter Valley networks, substantially
boosting capacity and improving reliability.
Following this period of investment, we
have now refined our business strategy so
that we can capitalise on this extensive
investment program and generate improved
returns for shareholders and better
outcomes for our customers.
To drive this growth we have commenced
a program to transform ARTC into a more
customer-oriented organisation, motivated
and driven by the goal of increasing the
volume of freight carried on the ARTC
network, and to do this safely and reliably.
This strategy will involve ARTC becoming
more engaged in the marketplace and able
to build more effective relationships with
customers at all levels in the supply chain,
based on a greater depth of understanding of
their needs and opportunities. ARTC will be
working more closely with rail operators to
deliver a measurable improvement in service
reliability and create new capacity to allow
the volume of freight on rail to grow.
Ultimately, ARTC is in the business to
help our customers utilise the rail network
more effectively and efficiently and
to make rail the mode of choice in the
national logistics chain.
Our business
ARTC delivered further growth in freight
volumes in 2011-12.
Access revenue rose to $537 million for
the period to June 2012, a 24% increase
over the prior year (2010-11: $433 million).
Earnings Before Interest, Tax, Depreciation,
Amortisation and Impairment (EBITDAI)
increased by 20% from $221 million in
2010‑11 to $265 million this year.
At 30 June 2012 the Company’s total assets
were $4.7 billion with a net debt position of
$520 million.
The result was impacted by significant
flooding in New South Wales during the
year and the decision taken by the ARTC
Board to commit further funds to improve the
condition of the Sydney toMelbourne rail line,
as part of the Ballast Rehabilitation Program.
Given the circumstances, the financial result
was positive and demonstrates the underlying
strength and diversity of the business.
Capital investment
In 2011-12 ARTC invested around $1.2 billion
in the business including $776 million on the
Interstate network and $377 million in the
Hunter Valley. Capital investment over the last
12 months has resulted in the completion of
projects that will increase capacity and provide
greater reliability across both of our networks.
In addition to upgrading track infrastructure,
ARTC made significant progress in bringing
the Sydney Metropolitan Freight Network
under ARTC control* and we are much closer
to the completion of the Port Botany upgrade.
* Transferred to ARTC control in August 2012
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