Metro Trains operations record $29 million profit

Lucrative new contracts promised to prevent cancellations and late services have delivered a $29 million windfall to Metro Trains, with the company doubling its profits since the new guidelines kicked in.

Metro’s annual profit margin is now sitting at about 3 per cent Picture: File

Lucrative new contracts promised to prevent cancellations and late services have delivered a windfall to Metro Trains, with the company doubling its profits since the new guidelines kicked in.

Documents released by Hong Kong’s MTR Corporation, a part owner of Metro Trains, show its Melbourne operation recorded a profit of $29 million in the last financial year, up 140 per cent from the year before.

Over that period, more than 6000 trains were cancelled and tens of thousands of services failed to arrive at the station on time.

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Tens of thousands of trains failed to arrive on time. Picture: Ian Currie

A new $7 billion contract between Metro and the Andrews Government came into effect at the end of 2017 and passengers were promised strict punctuality and service targets.

Harsh new penalties were also introduced for failing to maintain the network and meet passenger satisfaction.

But since the contracts came into effect Metro has received $7.3 million in bonuses and been charged just $770,000 in penalties based on passenger feedback.

Since December 2017, the operator has failed to meet its monthly punctuality target more than half of the time.

RTBU state secretary Luba Grigorovitch said the system should put public interest before profits.

“Metro continue to take taxpayers for granted, creaming profits from our network and ignoring the needs of passengers and workers alike,” she said.

“Huge profits should be reinvested in the system that so desperately needs every cent available to ensure a network that meets the needs of future generations not line the pockets of shareholders.”

“Metro continue to ignore the hard work of their employees and the commuters that depend on their services.

“The RTBU will continue to campaign to see justice for taxpayers, commuters and the hardworking staff that keep Melbourne moving”

Metro’s annual profit margin is now sitting at about 3 per cent and the operator is understood is invest more than $12 million into maintenance every week.

The company also claims to invest more than 15 per cent of its profits back into the railway operations.

“We’re moving more passengers and trains, and undertaking more maintenance, graffiti removal and cleaning across the rail network than ever before,” a Metro spokesman said.

A government spokeswoman said:

“The contract to operate Melbourne’s train network puts passengers first, with increased spending on maintenance and renewal to improve reliability, tougher performance targets and a greater focus on the passenger experience,” she said.

“Metro’s profitability will ultimately depend on how they perform for our passengers with strict financial penalties and more profit at risk than ever before. ”