Public Transport & PPP Scheme “Public Ka Naya Transport” Adverti si ng s logan or reali ty ??? Growth of personal vehicles & Dim in is hing percen tage o f Bus popu la tion
100,000,000
90,000,000
80,000,000 Personal vehicals
70,000,000
Public Transport 100% 60,000,000 Public Transport 95% vehicles 50,000,000 90%
40,000,000 85% Personal 80% Vehicles 30,000,000 75% 20,000,000
10,000,000
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1961 1966 1971 1976 1986 1996 2006 2010 Number of buses in different countries
Population in Mn. No. of Buses in Thousand
500 12000 10000 400 8000 300 6000 200 4000
100 2000
China Russia S.Korea Turkey India Brazil Japan Germany Mexico
Populati on Buses Reasons fo r hig h g rowt h of per sonal ve hicles
Personal vehicles Buses
Bank loans are easily available at lower interest Bank loans are difficult to get and interest rates . rates are high.
Motor vehicle tax is very heavy and different in Motor vehicle tax is one time and for single different states and simultaneously charged by state. multiple states.
Toll charges are less Toll charges are high
Parking on road is freely allowed plus all public Parking on road is prohibited and no parking buildinggps provide parkin g facilit y. facilityyp provided at an y Public buildin g.
No permit is required anywhere in the country Even for city permit is required plus checking plus no check by authorities. by authorities at multiple locations.
Last to be affected by one-ways and diversions First to be affected by one-ways and diversions Problems faced byypy Public Transport by Buses
Poor connectivity between Rail- Due to inconvenience People Air-Road and city buses. prefer own vehicles
Land is not made available for High dead mileage , Inefficient depots for parking and services with dirty and badly maintaining the fleet maintained buses
Operation becomes financially Resistance to hkhike tic ket rates by unviable pushing operator to citizens supported by politicians compromise on quality of service
Ticket rates can not compete Road tax , toll tax and passenger with expenses incurred by citizens taxes are very high towards usage of own vehicles
Manufacturers not confident in Charge heavy AMC amoun t ma king performance of new technology difficult for operator to survive buses over longer period of time Requirements
• Integrated city development with Mobility planning – • In order to provideefficient Public transport, rightinfrastructure is must. Size and location of Lands for Depots, Bus stops, Bus terminus, Multimodal terminals depending on predicted population growth and mobility are crucial. • Zero Tax regimes – • Economical rates with modern buses will attract more commuters. • Classification as “Infrastructure”‐ • To attract equity Investors,FDIs and Big Operators, to get tax benefit, to provide long term low interest structured funding similar like railways and airports . • Long term perspective – • Longer contract period will allow operator to spread his risk over a longer period and would allow him to go in for high value new technology vehicles. • Easy funding – • With long contract periods bank should give project loans for the entire system development; including depot and IT infrastructure, and not only vehicle financing. Are the buses funded under JNNURM a blessing?
Cities without having any expertise of running Buses or infrastructure may find it difficult .
Loss making STUs will incur more losses if efforts on attracting more commuters are not taken.
Operator would not give 30% margin to operate the buses owned by City corporations .
If buses are given without an investment , Operator will use the buses till the time maintenance is affordable.
Funding is needed to upgrade Public Transport infrastructure in totality which would facilitate STU or Private operator to provide world class services Why PPP?
Strengths of Government and Private are State transport undertakings do not have brought together to provide better service enough capital to invest. at economical rates.
Government is not willing to invest more To bring in capital and entrepreneur skills in loss making STUs. of private person / organization
Recruitment, training and managing the crew, fleet maintenance Traffic management, Sale of tickets, passes . Building of bus stops, terminals. Marketing of value added services Types of PPP
Gross Income is collected by City Where multiple concessioners are Transport and concessioner gets paid a operating on the same area/ route. It is fixed sum on charge Per Km basis pure fleet procurement, operation and irrespective of income. maintenance which is outsourced to increase efficiency of the service GROSS BASIS Ideal when there is a single concessioner in a city. very good route planning and revenue sharing model is required, If city is divided in to area or route to be Gross income is collected by the operated by different operators. concessioner and City Transport gets fixed income either on per bus / per Procurement, operation, maintenance of month or operated Km basis. fleet plus entrepreneur skills of the NET operator are put to use to market the BASIS services as his survival is dependent on revenue collection. Models of PPP IItntegra tdted an dFd Fragmen tdted
RESULT Maximise revenues with the focus on enhancing COMMUTER Advertising Rights COMFORT
Pass Pricing and Integrated Single Operator Sale
Vendor 1 Fare Box PPP Models Advertising Rights Collection
Vendor 2 Fragmented Pass Sale
Vendor 3, 4 & 5 Operate Certain Routes Revenue model and priority
Possible only when one operator undertakes entire city operations. Priority is given to passenger convenience as main stream of revenue is dependent on carrying more number of passengers. To attract more passengers he can leverage advertising space to be used as barter to provide discounts to pass holders in certain shops, malls, multiplexes, restaurants intercity bus operators etc.
Impossible when there is no strong city controlling body. Priorities of different service provider is different . Revenue model of bus stop advertiser - Is to generate revenue through only advertising hence he will opt for a place of bus stop where advertising will become profitable and will not consider passenger’s convenience. Cyclic Effect of each Model
Value More Loyalty Added Custom- Program Services ers
ONE GOAL Stra- Focus on increasing number of customers, through Accumul tegic improvement of services. ated Alliances Profits RFID Advert- GPS & Smart Fare ising GPRS Card Box Passes
Not Focus on Maximise backed by increasing Basics are Ad value collection provided Revenue added and not services on quality MULTIPLE GOALS Focus on maximising revenue , therefore the basics are provided as there is no motivation to improve service . Risks to PPP becoming successful
• Selection of an Operator and type and model offered Introduction of concept of qualified operator should be introduced in MV act which would avoid process of RFQ , technical bidding process which is very time consuming and requires some expertise which most of the Indian cities do not have. Depending on his qualification type and model can be offered to him. • Involvement of multiple authorities – Lack of coordination between City administration, Corporation, RTO, Traffic police etc. • Ever changing Prices of Fuel – 40 to 50% of expenses are directly affected by fuel prices • Changing environmental norms – Vehicles to be changed or upgraded to conform to the norms makes it impossible to predict project cost for longer period. • Tariff increase – Populism leading to tariff increase not being approved by the local authorities’. • Double standard policy – For STU ,Government is ready to provide land for depots, Invest in to infrastructure and even fund the losses but under PPP scheme expects royalty on top of taxes being paid without providing much of an infrastructural support. How to make PPP successful
Enables understanding between stakeholders on one another's relevant position (e.g. infrastructure projects) which removes arbitrariness from the conduct of the involved parties . Make relevant changes in MV act.
Cities with less/no expertise/understanding of the business, might award the contract to the wrong operators under spurious conditions for a longer period, thereby spoiling the public transportation system of the city and giving a bad name to PPP scheme.
This sector needs to attract private capital, as this being more of a local business entry of international ppylayers is difficult and most of the existin g local pyplayers do not have the financial capability. Along with fund , entrepreneur skills of operator needs to be employed
Whhlile mak ing investments Private pl ayers seek stab blility in regul atory regime, transparency, fair and balanced terms of the agreement, ability to make profits commensurate to the risks. Once JnNURM funds are utilised one needs to plan for this sustained growth through balanced PPP schemes. A Case Study Ecobus Jalgaon – An Integrated Model on Net basis
A Case Study – Prasanna Bus Links Pvt. Ltd. Vehicular Population – Jalgaon district
Jalgaon Vehi cular Population* (4,29,458)
Public Personal Others Transport Transport (54,977) (19,397) (3,55,110)
City Buses IPTS Two Wheelers Four Wheelers (26) (19,371) (3,27,859) (27,251)
Auto- ECObus Omni Cabs rickshaws (26) (2, 390) (16,981)
*Source – RTO Jalgaon – As on October 2009 Why was the PPP model applied in Jalgaon?
MSRTC sustained continuous losses from the city bus business in Jalgaon, and demanded compensation from JMC if not expressed their desire to stop providing services.
JMC wanted to provide service to the citizens but neither had the resources or expertise to do so
PPP was the only preferred option for city bus service.
JMTU floated tender and then partnered with Prasanna Bus Links to roll out city bus operations in Jalgaon. ecobus – A Revolution!!!
Our fleet consists of buses fitted with Euro III compliant diesel engines as CNG is not available in Jalgaon
The ticket rates are very economical Rs. 3 /- for first 2 Km and 0. 60 per km there after
Technology is rampant in all areas of operation right from tracking to information displays: GPRS fleet tracking and management system Electronic Ticketing Machines LED and LCD displays within buses, at bus shelters and depots RFID smart card passes ecobus’ s Predecessor – MSRTC City Buses
• The MSRTC city buses in Jalgaon, were characterised by the public of Jalgaon as follows: – Infrequent – Their average frequency across routes was more than 30 minutes – Limited Reach – The MSRTC city buses in Jalgaon operated on only 4 routes with 6 buses – Dirty – The interior conditions were in an ill‐maintained state, dimly lit and lacked adequate ventilation. – The MSRTC c ity buses were a lso p lague d by operatiliffiiiional inefficiencies.
• MSRTC discontinued its operations on the 15th of August, 2009, in Jalgaon. After introduction of “ecobus”
• Ecobus is extremely divergent from what the public had grown to accept of a city bus service. • We have started with basics in 25 days flat – High F requency – 15 m inu tes on a ll rou tes – Well Networked – 8 operational ( 15 more to come) – Well Maintained – 20 Mini + 6 SLF all new buses – Safe & Clean – Checked & Cleaned daily and operated by trained staff with uniforms .
(Click on the thumbnail for a larger image) (Click on the image to go back) 22 (Click on the image to go back) 23 (Click on the image to go back) 24 So h ow di d we do i t ? R esults!!!
• Launched the service in record 25 days flat ( Agreement signed on 20th Sept 09.& service started on 15th August 09). Key result areas • 11,000 passengers per day, as compared to around 2,400 . • Carrying Capacity increased by around 400 %. • Average Occupancy is 51.60%. ( 15% higher ) • Frequency of 15 minutes compared to more than 30 Min. • Routes covered are 8 against 4( additional 10 are planned). • Growth in network by 500% - 1.5 against 0.3 Lakh KM /PM ( Additional expected 2.0 Lakh Km/PM) • Average daily collection increased by 500 %. • Growth in average daily collection is 10.26% in last 3 months. • Reduction in pollution - 19.60% less diesel consumes per bus. Our Growth plans Different type of M ark eti ng sch emes to b e l aunch ed i n 2010
Before 31st Dec 2010 •60 Buses •50,000 Commuters •Launch of bi‐annual st Before 31 Sept 2010 and annual Dhamakas •45 Buses •Launch of Ecobus •35,000 Commuters community Before 31st January •Launch of Loyalty •Launch of value 2010 program added services for our •30 Buses ( 4 A.C.) •Strategic alliances city pass holders with other •Database marketing 15 Aug ‘till date •20,000 Commuters shops, services, vend •Launch of Ecomiles – 26 Buses •IT infrastructure ors earn while you travel 11,000 Commuters with LED, LCD Panels •Database creation •Launch of add‐on city Basic city bus service in buses, bus stops •EXPECTED BREAK passes launched •Launch of RFID smart card for Passes EVEN with 15% of SMS alert services revenue by way of advertising How do we expect to achieve this growth
Through sustained marketing efforts.
Through getting minimum 15% additional revenue by Promotions & Advertising.
Through efforts of motivated manpower by providing higgqh qualit y service.
Through achieving high level of operational efficiency. Sustained Marketing Efforts
Route (Day, Monthly, Quarte- City Gold rly &A& Annual) City Silver (Day, Monthly, Quarterly & (Monthly, Quarterly & Annual) Annual) Outside City City
And many More!!! Bus ETA & Earn Free Domestic and (Click here to see the Schedule miles International Tours detailed structure) BENEFITS Silver Pass Gold Pass Discount on purchase D D Special Seat allocation D SMS of bus ETA D D SMS on bus schedule D D Earning Ecomiles on Ecobus D D Earning Ecomiles at Ecopartners D D Discount coupons from Ecopartners D D Bonu s Programs D D Municipal Tax Deduction D D Miles on Annual City Passes D D Miles on Quarterlyyy City Passes D Free add on Pass D Free Round Trip Bus Tickets D D Free Domestic Tour Package D Free International Tour Package D MSEB Bill Deduction D Ecoaccount e-charge in ecobus D D Ecomiles on e -charge in ecobus D D Complimentary Merchandise D E-updates via SMS on Ecoaccount status D D BACK Innovative Promotions & Advertising
GPS & GPRS based advertising: Our buses will be tracked througgpggh a GPS/GPRS which will be use full to publish advertising to targeted audience. Targeted advertisements will be displayed on LCD screens inside the bus
State of the Art buses and bus stops : The state-of-the-art bus stops & terminal will provide ample space for advertising. Many areas of buses such as grab rails, seat backs, top of the bus ,exte,exteriorrior & interior panels and bus stops would be made available for branding or publishing the advertisements
Joint promotional schemes Co branding would be used extensively in all promotional material as well as on tickets, passes, time tables,,p maps etc. Events and com petitions like SA RE GA MA ,NACH BALIYE Etc would be arran ged for pass holders Motivated Employees
Drivers and Conductors Level 1 Level 2 Level 3 Level 4 will be given graded on various parameters with Visual symbols that signify their performance
Visual Symbols: Like Bands, belts, stars etc. The visual symbols clearly demarcates the level a particular driver or conductor has reached. Thereby making them aspire to earn symbols, which would improve quality of service.
Drivers: Conductors: Performance parameters Performance parameters How does a driver & like Maintenance, fuel Ticket sale, courteous conductor earn Visual consumption etc. behaviour etc. symblbols ? Customer Feedback Customer Feedback Training Hours Training Hours Working discipline Working discipline Operational Efficiency
GPS & GPRS based Fleet Management System: Our buses will be tracked through a GPS/GPRS based Fleet Management System, which enables ecobus to effectively monitor its performance on real time basis. This system will enable us to track the dead miles, stoppages, time performance , breakdowns etc.
State of the Art bus depots and terminal: The state-of-the-art bus terminal will contain, automated bus washing machines, multiple maintenance bays, modern machinery , central control room , customer service centres ,IT infrastructure, staff training rooms , retiring rooms ,canteen etc.
Dedicated & Trained Staff: Our multiple maintenance hangars will be manned by a dedicated and trained garage staff. This ensures minimal downtime of our vehicles, while at the same time ensuring each is running at optimal levels. India is ready for a revolution .
• We at Prasanna Wish to enrich everyday lives of millions of people Wish to set highest service standards Wish to provideworld class service
To changeimageof “PublicTransport ” in our country
Thank you