118 / 132
(a) Capital commitments
At 30 June 2017, the Group has commitments in the order of $121.4m (2016: $85.5m) relating to
the investment program that the Group will be undertaking in the Interstate and Hunter Valley
business units in the coming years.
The scope of the work is over a range of projects along the corridor, with the focus on repairing,
renovating and rebuilding the rail infrastructure assets to address rail’s performance on the corridor.
(b) Lease commitments: Group as lessee
Non-cancellable operating leases
The Group leases various offices and warehouses under operating leases expiring within one to eight
years. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms
of the leases are renegotiated.
Consolidated
2017
$’000
2016
$’000
Commitments in relation to leases contracted for at the end of
each reporting period but not recognised as liabilities, payable:
Within one year
9,007
9,455
Later than one year but not later than five years
18,366
18,006
Later than five years
3,132
3,037
30,505
30,498
116
NOTE 13
CONTINGENCIES
NOTE 14
COMMITMENTS
The Group accounts for costs associated with rectifying rail access related incidents following their
occurrence. Income from subsequent insurance and other recoveries are only recognised when there
is a contractual arrangement in place and the income is virtually certain of being received. As a result,
certain potential insurance and or other recoveries have not been recognised at year end, as their
ultimate collection is not considered virtually certain.