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                   Our Network 
                    and Infrastructure Division now handles the design and construction 
                    of facilities for both the rail and bus systems, providing 
                    a critical mass previously unachievable.We now 
                    have access to a much broader body of skills and are able 
                    to apply those across the various transport services, thereby 
                    improving efficiency and service standards. 
                  Considering 
                    all these improvements, the PTA can claim with confidence 
                    to be a national pacesetter for the delivery of public transport 
                    services. New South Wales, Queensland and South Australia 
                    have shown strong interest in the Western Australian model. 
                  The benefits 
                    of the new structure are clear where they matter most  
                    in the perceptions of our customers.The latest Passenger Satisfaction 
                    Monitor reveals customer satisfaction to be very high at approximately 
                    90 percent across the board. This is the best result of any 
                    public transport system in Australia and it comes at a time 
                    when we are experiencing unavoidable disruptions through the 
                    major capital works being undertaken for the New MetroRail 
                    project and the Building Better Train Stations program. It 
                    is pleasing to see such enormous loyalty among our customers. 
                  Our staff 
                    have warmly accepted the transition to the new era in public 
                    transport. With the creation of the PTA and subsequent addition 
                    of Transit Guards to the rail network, there are now nearly 
                    950 people in the organisation. I perceive our staff feel 
                    at home in the new environment and the working relationships 
                    being developed are extremely strong. There will be further 
                    significant staff increases as elements of the New MetroRail 
                    project are completed and new services are introduced. 
                  All major 
                    contracts have been let for the New MetroRail project and 
                    preliminary works have proceeded on schedule. The extension 
                    to the Northern Suburbs Railway is almost complete and the 
                    Thornlie spur development is well under way. While it is early 
                    days, the way in which we have minimised traffic disruptions 
                    resulting from work on the Perth foreshore and in the citys 
                    streets has drawn a very positive response from the community, 
                    the City of Perth and Main Roads WA. This gives us enormous 
                    confidence as we press forward with the largest public transport 
                    development project ever undertaken in WA. 
                  The New 
                    MetroRail project is already transforming the landscape for 
                    the better,with the old fly-over bridge on the Esplanade and 
                    the old Myer building in the central city largely demolished. 
                    Communities in the Peel Region which have always been solid 
                    supporters of the project, now have more reason to be pleased 
                    following the decision of the Government to bring completion 
                    of the Mandurah section of the railway forward 12 months to 
                    late-2006.  
                  The expansion 
                    of the suburban rail network is not the only reason to look 
                    forward with excitement. The PTAs growing focus on people, 
                    training and customer service represents a paradigm change 
                    in culture that will allow us to deliver excellent standards 
                    in public transport. Standards in the delivery of school bus 
                    services across WA will continue to rise on the back of improved 
                    training, resourcing and contract management. The move to 
                    compressed natural gas (CNG) powered buses will bring us in 
                    line with the latest Euro4 environmental standard,utilise 
                    a local energy resource and insulate the PTA against rising 
                    energy prices. Approximately 450 of these latest CNG buses 
                    will be purchased over the next seven years, rejuvenating 
                    the Transperth fleet at a cost of $250 million. The SmartRider 
                    card system, scheduled for introduction in Perth in July 2005, 
                    will do away with the need for cash ticket purchases for trains, 
                    buses and ferries, resulting in greater convenience for passengers 
                    and faster loading 
                  For these 
                    and many other reasons the Public Transport Authority looks 
                    forward with great anticipation. 
                    
                   Reece 
                    Waldock 
                    Acting Chief Executive Officer 
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