RailCorp overhaul could lead to job cuts

A major shake-up of RailCorp could lead to job losses, NSW Transport Minister Gladys Berejiklian has warned.

The NSW government has launched reform of the train operator on Wednesday, saying it was imperative if RailCorp was going to be sustainable.

“We are regrettably one of the most inefficient rail organisations in the world,” Ms Berejiklian told ABC Radio.

“We need to make sure that every dollar we put into the organisation comes out as a better service.

“It could mean jobs going, I’m not ruling that out.”

Between 2006-07 and 2010-11, Ms Berejiklian said RailCorp’s operating costs had skyrocketed by almost 30 per cent, up $588 million to $2.6 billion per year, but passenger journeys only rose by about by nine per cent, from 269 to 294 million annually.

“Fares go up and running costs increase but service is not improving at the same rate,” Ms Berejiklian said in a statement.

The reform, led by former CEO of Sydney Ferries David Callahan, is part of an ongoing project by the state government to centralise planning and policy systems, such as timetables.

“We have already substantially made some reforms to RailCorp but now we are beginning a more comprehensive process,” the minister said.

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