Franchise Agreement Ptv

Rolling Stock Holdings (a subsidiary of VicTrack) owns the majority of Victoria`s rolling stock. It leases vehicles to PTV under a cross-cutting lease. PTV then leases the rolling stock to franchisees under individual vehicle leases. The PTV forecasts that the number of passengers will increase by 3.3% per year for trains and 3.8% for trams between 2015 and 2021. This enhanced sponsorship and major construction projects planned during this period will pose operational challenges for franchisees. However, PTV was unable to provide sufficient evidence to demonstrate how it or the former Department of Transportation established some of these benchmarks, nor was it able to demonstrate how franchisee performance was measured against them. The provision of reliable public services in Melbourne depends on the proper maintenance of the heritage of the tram and train networks. Victorian Rail Track (VicTrack) owns these assets and leases them to Public Transport Victoria (PTV). PTV then leases the assets to Metro Trains Melbourne (MTM) and Yarra Trams train and tram franchisees and pays for maintenance and renewal work.

As part of the franchise agreements, CEPR measures the customer experience with train and tram services. This scheme, with bonuses and penalties, was introduced for the first time in the MR3 franchise contracts. The current tram and tram franchise agreements – known as MR3 – expire in November 2017. The agreements give franchisees the exclusive right to negotiate with the state an extension of the agreement for up to seven years if they meet certain performance criteria. In 2014, ptv, after advising customers and franchisees and completing further research, developed a revised set of customer experience standards to cover the end-to-end customer experience. The standards include achievable, desirable and ambitious standards based on current performance. PTV`s decision to make incentive payments and penalties through subjective telephone surveys meant that the achievement of this benchmark required much less effort for each franchisee. The current rail and tram franchise contracts – known as MR3 – were introduced in 2009 as part of a tendering process. This is the third time that franchise agreements have been reached for melbourne rail traffic. 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.

Figure 4A Contract contracts for the renewal of the PTV franchise pay franchisees for the maintenance and renewal work they contract. PTV reviews this work only on a limited basis, but does not analyze the information provided or how franchisees effectively track and manage asset issues. The position papers contain detailed background information, identify vulnerabilities in MR3 agreements and offer options to address them. PTV adequately assessed the performance of franchisees using past data and performance from other national and international networks. PTV`s review of public reports to prepare for negotiations on rail franchise and tram contracts from 2017 (MR4) has highlighted the need for several significant improvements. It is important that public reports on objectives, thresholds and payments are simple and transparent. Railway customer satisfaction is measured by a quarterly telephone survey. As shown in Chart 1E, customer satisfaction has improved under the current agreement and has met the performance targets set when negotiating the contract. Since 2009, the government has provided more than $7.6 billion to franchisees to operate Victoria`s train and streetcar networks – MTM $5.4 billion and $2.2 billion to Yarra Trams through June 30, 2016.

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