Franchise Agreement Yarra Trams

The PTV improves the punctuality of streetcars on government initiatives such as new schedules and franchise initiatives to improve communication and efficiency. The reliability and punctuality of the tram are affected by the warm weather and special events from January to March. The introduction of free trams in Melbourne`s central business district in January 2015 led to lower performance due to increased patronage. Similarly, traffic congestion is increasingly affecting the performance of the tram. In addition to meeting CEPR requirements, franchisees should also meet the after-sales service standards agreed under franchise agreements. We found that PTV did not hold franchisees accountable for their compliance with these standards. PTV`s analysis of the MR3 agreement showed that operating costs have increased with current agreements – particularly for the rail network – since VicTrack was established in 1997 and is a public company operating under the Transport Integration Act 2010. It owns Victoria`s railways, infrastructure and assets. Through a subsidiary (the Rolling Stock Holdings Group), it also owns a large part of the state`s rolling stock. VicTrack also plays a role in providing telecommunications services to franchisees.

PTV and the Department of Economic Development, Jobs, Transport and Resources (DEDJTR) are now dealing with the lack of long-term asset management strategies. In preparing for the next franchise agreements, known as MR4, PTV acknowledged its insufficient attention to asset management during current franchise agreements and began to correct these long-standing deficiencies. Combined with financial incentives and a fine (limited to $1.1 million per month for trains, $0.55 million per month for trams). The service charges for network operations (basic contract and maintenance, figure 1H) and a portion of the revenue from the sale of municipal tickets account for the majority of payments to franchisees. Franchisees run the risk that their operating costs will exceed combined service charges and the share of ticketing revenues. PTV has not conducted a proactive review of the system`s maintenance plans or, since July 2012, conducted audits or inspections of the compliance with after-sales service standards by franchisees. Instead, PTV relies on customer information, which is provided through surveys, call center and website requests, and “Mystery Shopper” programs from franchisees. As a result, PTV did not objectively assess the compliance of its after-sales service obligations by franchisees. The PTV attributed the deterioration in the condition of tram tracks to a number of factors, in particular the recent increase in the use of heavier lower-level trams. As the use of this type of streetcar is expected to increase in the future, PTV will have to meet this challenge in the management of tram networks. Under the OPR, PTV determines incentives and penalties by measuring the effects of individual service delays or cancellations on passengers.