Foreword

The North East Link State Tolling Corporation (STC) was created to provide road toll collection capabilities and act as the designated owner and operator of North East Link (NEL).

Following the Victorian Government’s decision to approve the investment and delivery of the NEL to complete the ‘missing link’ in the Melbourne metropolitan freeway network, the Government also approved NEL as a future toll road. The STC was created to provide road toll collection capabilities and act as the designated owner and operator of NEL, as well as to hold the entitlement to future toll revenue on NEL.

Established as a commercial entity in March 2021 in the Public Non-Financial Corporation (PNFC) sector under the North East Link Act 2020, STC will be the long term owner of the NEL assets and toll revenues. These assets are to be designed, built, operated and maintained through a Public Private Partnership contractual arrangement (PPP) between the State and STC, jointly as principal, and Spark North East Link Pty Ltd as contractor.

The financial year ending 30 June 2023 has seen a significant step change in STC’s governance. In August 2022, the interim Board was replaced by a permanent independent Board with Brad Vann as the Chair. An Nguyen was appointed as STC’s inaugural Chief Executive Officer in June 2023.

At the beginning of the financial year, STC commenced the tolling collection capability (TCC) project. Over the next four years, the TCC project will procure and deliver the equipment and systems that will ensure NEL can be opened and tolled in accordance with Government requirements. During the construction of NEL, the North East Link Program (NELP) within the Major Transport Infrastructure Authority (MTIA) will be responsible for managing the PPP on behalf of the State and STC. STC will subsequently assume responsibility for the PPP once NEL is open to road users.

The TCC project team undertook a significant market sounding exercise during the year, which has allowed STC to better understand the global toll collection market and increase NELP and STC’s profile. The TCC project launched its Registration of Interest in May 2023 and is expecting to formally launch the procurement process in the 2023-24 financial year.

Our approach to managing key challenges such as potential cost and time pressures on the delivery of NEL, which may impact on STC’s asset ownership responsibilities, will be grounded in working closely with STC’s key partners and stakeholders. STC will ensure risks are appropriately monitored, managed, and responded to in the planning for STC’s key activities, such as the TCC procurement.

As a Department of Transport and Planning (DTP) portfolio agency, STC will operate in alignment with DTP’s vision, which is to bring about ‘Thriving places, connected communities’. Our vision ‘to be the best-in-class transport asset owner-operator and to create lasting value for Victoria’ will drive the achievement of our strategic priorities over the next four years and beyond. Our values of collaboration, respect, honesty and innovation will guide how we behave, how we work, and how we engage with our stakeholders to achieve our vision.

Responsible Body’s declaration

In accordance with the Financial Management Act 1994, we are pleased to present the North East Link State Tolling Corporation’s Annual Report for the year ended 30 June 2023.

Chief Executive Officer

An Nguyen

North East Link State Tolling Corporation

7 September 2023


Chair

Brad Vann

North East Link State Tolling Corporation

7 September 2023

Updated