Overcoming Challenges of Integrating Urban Transport System

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

Thank YouThank You

[email protected]@embarqindia.org