Managing the Performance of Rail Franchisees

Tabled: 7 December 2016


Public transport is an essential service for many Victorians, and an effective transport system is critical to the state’s economic prosperity and liveability. Public Transport Victoria (PTV) is responsible for managing the contracts with the operators that run the metropolitan passenger train and tram networks, known as franchise agreements. Agreements must be well designed, and effective contract management policies, processes and systems must be in place to ensure these agreements deliver value for money to the state of Victoria.

In this audit, we looked at how PTV manages its franchise agreements and oversees the assets it leases to franchisees, to improve the performance of the train and tram networks. We also assessed how PTV and the Department of Economic Development, Jobs, Transport & Resources have prepared for future franchise agreements.

We made five recommendations in our audit report, all of which PTV has accepted. 

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