overcoming challenges of integrating urban transport system
DESCRIPTION
By Amit Bhatt, Strategy Head, Transport, EMBARQ India. Presented at Transforming Transportation, January 26, 2012, Washington, D.C.TRANSCRIPT
Overcoming Challenges of Integrating Urban Transport System
Jaipur Bus
Transforming TransportationJan 26, 2012
Amit Bhatt
Strategy Head – Transport
EMBARQ India
Jaipur
Population 20011: 3.0 Mil
Population 2021: 5.1 Mil
Area: 288 sq.km
Background Ministry of Urban Development (MoUD) sanctioned
400 buses for intra city operations in Jaipur at cost of 31 million USD under the JnNURM program
Jaipur City Transport Services Ltd. (JCTSL) formally launched the new service on July 31, 2010
Prior to JCTSL’s operation, City Bus Service in Jaipur was operated by Rajasthan State Road Transport Corporation (RSRTC)
EMBARQ is assisting JCTSL in City Bus Operations
Pre JCTSL Operations in Jaipur Rajasthan State Road Transport Corporation
(RSRTC) was operating around 140 buses on 18 routes
Average daily ridership for the entire system was about 82,000 pax. per day
Bus productivity was relatively low with about 583 persons per bus per day
Vehicle utilization was high at 241 km/bus/day, while EPKM was Rs 24.45
• 400 Buses - Jaipur is awarded 400 buses by MoUD.
• No Staff - Jaipur City Transport Services Limited (JCTSL) created with 2 employees. Staff has general administrators - no experience planning, managing, supervising bus operations.
• Can’t Attract Private Operators - JCTSL tries to engage private companies to run operations but is not able to attract operators.
• Contract with Rajasthan State Road Transport Corporation (RSRTC), a reluctant partner - JCTSL set’s-up a contract with RSRTC to run operations. RSRTC is a reluctant partner in the contract and a one-sided contract is set-up. RSRTC believes the system will not be successful.
Challenges
City Bus Implementation Structure
Public - Public Partnership (PPP)
JCTSL Bus Operations
JCTSL started trial services from June 2010, while formal services started from July 31, 2010 under the name Jaipur Bus
Jaipur Bus are direction based services that operate on 10 routes, 7 circular and 3 radial routes with unique color
A flat fare of Rs 7 per trip
Gross cost contract between JCTSL & RSRTC
Existing Bus Route Network
Color Coded Buses
Color Coded Buses
Range of Buses
Advertisement on Buses Spare Buses
Suburban Bus AC Bus
Existing Operation Plan (sept 2011)
Parameter Values
Total Bus Route Network (Km) 401
Segregated Bus Corridor (Km) 7.1
Total No. of Bus Stops 497
Operation Timings 5:30 AM - 11:00 PM
Avg. Frequency (min) 16
Total Buses 221
Average Daily Ridership 157,000 pax / day
Average Daily Revenue (Rs) 13.54 lac (USD 30,000)
• Opportunity - EMBARQ India perceives opportunity for Jaipur to initiate formal public transport in the city
• • Partner with JCTSL to provide technical capacity and support.
• Gather data on operations
• Analysis - Present analysis based on data gathered
• Empower – JCTSL to use our analysis to negotiate with RSRTC, and to convince state government departments.
Strategy
Launch of CBS(July2010) Drop in Ridership
(Diwali)
Daily Revenue and Fare Collection
Drop in Ridership (Winter Vacation)
Spurt in Ridership (Val.Day)
Shift to Stage based fares
Launch of CBS(July 2010)
Drop in Ridership(Diwali)
Weekly Revenue and Fare Collection
Drop in Ridership(Winter Vacation)
Adoption of Stage Based Fares
JCTSL buses are unable to cater short trip length users (0-4 km trip lengths)
Source: EMBARQ Primary Survey
Source: EMBARQ Analyses
SUMMARY OF BUS USER PROFILE
Bus Operations Cost (May'11)Operating Costs
Mileage (kmpl) 3.16Cost (rspl) 41.56
Bus km per day 223Bus km per month 6,356
Monthly Expenses Insurance 5,213
Diesel 83,587Salaries 93,489
Other expenses 45,251Tires 6,483
Total Exp. per month 234,023
Operating cost per km 36.82
Fixed CostsCost of Bus (Rs.) 26,41,014
Initial Loan Amount (Rs.) 1,029,995
Equity % 0%
Equity % -Loan amount (Rs.) 1,029,995
Interest rate 9.50%Term of payment (yr.) 5
No of EMI 60EMI Loan (21,632)
EMI per KM (Rs.) 3.60Return Rate 15%
Term of payment 5
No of EMI 60
Fixed Cost per KM 3.40
Total CostsDeprecation (Rs. / Km) 0.018Fixed Cost (Rs. / Km) 3.40Operating Cost (Rs. / Km) 36.82
Total Cost (Rs. / Km) 40.24
Total Income Revenue (Rs. / Km) 25.77Total Cost (Rs. / Km) 40.24Net Income (Rs. / Km) - 14.47
Journey So Far………Months Activity
May,2010 Signing of MoU with JCTSL
August, 2010 Developed Data Collection &Monitoring Format
September, 2010 Conducted Primary Surveys
Oct- Nov, 2010 Submitted Reports on Bus operations
December , 2010 Presented Routing Plan of Sub Urban Buses
January, 2011 Presented ETM data analysis
February, 2011 Presented half yearly performance report
May, 2011 Conducted Opinion Survey to assess impact of stage based fare structure
July, 2011 Submitted Report on Opinion Survey
August, 2011 Conducted Workshop on Marketing and Communications for Public Transport Projects
September, 2011 Conducted Opinion Survey to assess impact of revision of another round of fare revision
Financial Performance
Bus Operations Cost (Nov'11)Operating Costs
Mileage (kmpl) 3.16Cost (rspl) 41.56Bus km per day 223Bus km per month 6,356
Monthly Expenses Insurance 5,213
Diesel 83,587Salaries 93,489
Other expenses 45,251Tires 6,483Total Exp. per month 234,023
Operating cost per km 36.82
Fixed CostsCost of Bus (Rs.) 26,41,014
Initial Loan Amount (Rs.) 1,029,995
Equity % 0%
Equity % -Loan amount (Rs.) 1,029,995 Interest rate 9.50%Term of payment (yr.) 5No of EMI 60EMI Loan (21,632)EMI per KM (Rs.) 3.60Return Rate 15%
Term of payment 5
No of EMI 60
Fixed Cost per KM 3.40
Total CostsDeprecation (Rs. / Km) 0.018Fixed Cost (Rs. / Km) 3.40Operating Cost (Rs. / Km) 36.82
Total Cost (Rs. / Km) 40.24
Total Income Revenue (Rs. / Km) 35.44Total Cost (Rs. / Km) 40.24Net Income (Rs. / Km) - 4.80
Existing Operation Plan
Parameter Values
Total Bus Route Network (Km) 401
Segregated Bus Corridor (Km) 7.1
Total No. of Bus Stops 497
Operation Timings 5:30 AM - 11:00 PM
Avg. Frequency (min) 16
Total Buses 221
Average Daily Ridership 150,000 pax / day
Average Daily Revenue (Rs) 1.4 mi
• Ridership on the Jaipur bus system increased from 65,000 in July 2010 to 172,000 in March 2011, surpassing the anticipated ridership for that benchmark by over 70%.Jaipur system has expanded from 100 to 220 buses.
• Riders give the system high marks and Jaipur City Transport Services Limited (JCTSL) received the “Best Commendable Emerging Initiatives” award for its City Bus Service Project from the Government of India at the Indian Ministry of Urban Development’s annual Urban Mobility India 2010 conference.
• Operating losses reduced from from Rs21 (USD 0.42) / km to Rs 4.8 (USD 0.10) / km
Outcome
• Institutional Capacity – Limited staff at the agency; staff gets transferred; hiring new trained staff into the SPV has challenges
• Vehicle Maintenance - Limited capacity in the ecosystem on maintaining the more comfortable urban buses. The problem will get bigger as buses get older.
• Land - JCTSL has no land inside the city for depots and terminals. RSRTC has the land. Land becomes the obstacle for good negotiations/contracts.
• Buses – The quality of the buses is a concern.
Challenges Going Forward
• Partnerships / contractual agreements
• Performance monitoring
• Data collation and information dissemination
• Capacity building
Public Transport, a Strong Driver for Compact Urban Form – Transport (roads or public transport) is the driver for land development in rapidly urbanizing cities. Providing high quality public transport helps concentrate development and promotes a compact urban form.
Implications/Significance for Scaling up
