A performance audit into the maintenance of Melbourne’s metropolitan railway assets has found that while they were effectively maintained, the Department of Transport and Planning (DPT) had not assessed whether the current maintenance and renewal approach would sustain asset performance in the long-term.
In his report Maintaining Railway Assets Across Metropolitan Melbourne, Auditor-General Andrew Greaves said he examined DPT, asset owner Victorian Rail Track (VicTrack) and train operator, Metro Trains Melbourne.
“Metro is maintaining Melbourne’s metropolitan railway infrastructure and technology to support reliable and punctual train services and keep passengers safe,” Mr Greaves said.
“However, the Department has not assessed whether Metro is optimising asset costs, and if the current maintenance and renewal approach will sustain asset performance in the long-term,” he said.
“The Department does not have a long-term strategy for its railway infrastructure and technology assets.”
Mr Greaves said DPT did not have an effective way to measure asset performance and assess Metro’s work.
He said it needed this information to ensure the current agreement and any future contracts delivered value for money.
The Auditor-General said DPT’s current train operation agreement with Metro spanned seven years to November 2024 however, the lifespans of many of the assets were far longer than seven years.
“The Department has not assessed whether Metro is maintaining and renewing these assets in a way that optimises their performance and delivers value for money across their lifespans,” Mr Greaves said.
“There is a risk that the Department will not improve any future franchise arrangements as much as it needs to because it has not comprehensively assessed asset maintenance and renewal performance under the current agreement, or ensured it has the capacity and capability to do this work.”
He made 10 recommendations to DPT, five on assessing how railway assets performed, three on better guiding how Metro planned maintenance and renewal works, and two on overseeing the works that Metro delivered.
The Auditor-General’s 65-page report can be accessed at this PS News link.
