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IT IS A GREAT HONOUR
TO HAVE BECOME THE
CHAIRMAN OF ARTC.
IN THAT SPIRIT, AND
ON BEHALF OF THE
BOARD OF DIRECTORS
AND MANAGEMENT
TEAM, I AM PLEASED TO
PRESENT OUR ANNUAL
REPORT FOR FY2016.
This year, ARTC produced a strong
underlying profit, despite challenging
market conditions. Following this result,
the total dividend paid for the year
to the Shareholders was $91.3 million,
an increase of 59 percent over the
prior year. We are pleased to deliver
such a satisfactory outcome for
our Shareholders.
ARTC’s commitment is to put our
customers at the centre of all we do,
while delivering value for Shareholders.
This has led our leadership team to
continue to focus our transformation
program on the quality of the customer
experience; our own effectiveness and
efficiency; as well as the safety of our
staff, customers and the community.
ARTC recognises the critical role we play
in the transport supply chain. We will
continue to work hard to make rail the
preferred mode for transporting freight.
During the year we also welcomed
the opportunity to participate in
the Government’s Scoping Study,
culminating in the May 2016 Budget
announcement where the Australian
Government advised it had decided to
retain ownership in ARTC and leverage
our capability to help deliver Inland Rail.
The Board and management are now
working proactively and constructively
with our Shareholders on the new body
of work for the Inland Rail Programme
which includes market testing to optimise
private sector involvement in the delivery
and financing of Inland Rail. ARTC is
pleased to be actively involved in this
process and is committed to a fact-based
and rigorous process that ensures the
best outcome is delivered for customers,
the community and our Shareholders.
Financial Results
ARTC’s reported Net Profit after
Tax (NPAT) of $117.6 million, while
lower than the prior year, included an
unfavourable post-tax adjustment of
effectively $48.7 million relating to prior
years. This adjustment arose from the
Australian Competition and Consumer
Commission’s (ACCC) 2013 review of
the cost allocation methodology used
for Zone 1 and Zone 3 coal producers
in the Hunter Valley, which was
CHAIRMAN’S
OVERVIEW
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