its in intermediate public transport and safety
TRANSCRIPT
ITS IN INTERMDIATE PUBLIC TRANSPORT AND SAFETY
Umang JainManaging AssociateWRI IndiaSustainable [email protected]
New DelhiApril 07, 2016
India to be 40%Urbanized by 2030
Scenario
Existing Public Transport is overloaded
Informal Public Transport system
IPT is playing an important role in filling the gaps in meeting daily
mobility needs.
Pre JnNURM…..20 cities had formal PT system
Mostly big cities had bus system
Most cities relied heavily on IPT system
Shared Autos MinibusesTata MagicTaxis
Overview of IPT Sector
Stake Holders &Beneficiari
es
Infrastructure
Operation &
Finances
Vehicles
Regulations
Enforcement
Bus stops repair facilities
FareCapital Cost
O & MRidershipRevenueVehicle
UtilizationManufacturers
ModelsPermit
MaintenanceFitness
CertificatePUCRoutes/
PermitsVehicles
FaresSchedules
Infrastructure
Quality of ServiceTraffic Police
DealersInsurance CompanyRoute President
Union/Association of Owners
Transit AgencyTraffic PoliceFinance CompaniesMiddle MenUsersConductorsDriversOperators / OwnersRTO
Self Drive
n
Hired Drive
rs
Salaried
Contract (Fixed amount to be paid to owner )
Routes Permit
sDrivin
g-Licens
e
Min
ibu
s S
ect
or
Private Sector Stakeholders
90-95% owners own 1-2 vehicles
There are two models of operations
Owner drives the vehicle (owner-driver) Owner rents the vehicle to a driver for a fixed fee (renter-driver)
Highly fragmented sector
Difficult to manage
1. Tata Magic & Minibus Owners
Association is headed by a president
President’s source of power is the # permits
Not involved in daily operations
Important stakeholder due to links in the system
Orderly dispatch of vehicles through route managers
Route managers are elected by owners
Payment @Rs 10/vehicle /day to the route manager by the owners
2.Tata Magic Association
Association is headed by a president
President’s source of power is the # permits
Engages with RTO, Traffic Police and other departments on behalf of owners
Not involved in daily operations
Important stakeholder due to links in the system
2.MiniBus Association
3. Drivers-Personal InformationAge Profile of Drivers
39% of the drivers are in the age group of 30-40
years.
Educational Qualification
58 % of drivers are educated till 8 th standard
Migrants Vs Localites
23% of drivers are migrants
Work Experience
upto10 yrs –55%
3. Drivers-Personal Information
Monthly Earning Monthly Savings
Low standard of living
4.Conductors- Personal InformationAge Profile of Conductors
59% of the conductors are less than 35 years of age.
Educational Qualification
70% of conductors are educated till 8 th standard
Migrants Vs Locals
14% of conductors are Migrants
Work Experience
upto10 yrs – 80%
4.Conductors- Operation Details
Average daily earnings -Rs 3500-4000
Passengers/Day/Minibus
3. Revenue/Day/Minibus
Trips/Day/Minibus
Finance Companies preferred over banks as they are faster in completing formalities
Major Finance Companies are
Tata Finance (62% market share)Sriram Finance (19% market share)Shakti Finance (19% market share)
Tata Magic vehicles cost around Rs. 3,76,000 for a new vehicleFinanced at 11.5% rate of interest for a term of 5 to 7 years.
5.Finance Companies
Companies Finance 80% value of the cost for new Minibus
5.Finance Companies
Terms of Finance (New Vehicle)
Companies Finance 40-50% value of the cost for second hand Minibuses
Terms of Finance (Old Vehicles)
Permeated the entire systemDriving LicenseFitnessPermits for vehicles
Temporary Permits: Agent Charges around Rs 2000 which officially cost Rs 750
Beneficiaries of the above include
Officials in permit branch of RTO ,Inspectors of fitness department etc
Agent earns up to Rs 350 per transaction
Permanent Permit: Agent Charges around Rs 4000 and earns a profit of Rs 700-800 per transaction
6. Middle Men(Agents)
Public Sector Stakeholders
Decides routes to be operated on basis of surveys(ad hoc)
Issues permits(capped) on submission of:
Permit fees along with documentsTax ReportColour ReportSpeed Governor Report
1.RTO
Enforcement of rules and regulations
Enforcement ofvalidity of driversvalidity of permitsvalid vehicle registration and certifications( fitness & PUC)checks on illegal parkingchecks on vehicles stopping at designated stops for pick-up/drop-off,checks to prevent overloading of vehicles
2.Traffic Police
Detailed Costs & Revenues of Public Transport Operations
ParameterTATA Magic:
No Overloading
Mini Bus: 6m Big Bus: 12m Midi Bus: 9m
# in operation 1375 2130 320
Revenue/Km 10.40 10.40 5.20 19.33 30.00Operation Costs/Km 11.08 8.77 11.08 20.41 42.00 24.41
EMI 0.41 0.41 0.41 4.00 2.00Maintenance and depreciation 0.89 0.89 1.37 7.00 1.37Permit, Insurance and Taxes 0.11 0.11 1.00 0.37Fitness 0.01 0.01 0.04 0.04Fuel 4.07 4.07 4.07 10.00 25.00 12.00Conductor remuneration 0.15 0.15 0.15 2.50 1.50 2.50Miscellaneous 0.44 0.44 0.44 0.22 2.00 0.22Payment to the Owner 3.70 5.20Driver Remuneration 5.00 5.00 1.50 5.00
Avg Age of Vehicle 5 5 8 5 NA
TATA Magic
1. TATA Magics and mini-buses not profitable if they don’t overload2. TATA Magics undercut minibuses, which in turn undercut big buses leading to
low quality of service.
1. Overlapping Routes
Significant overlap of routes
Formal Bus Services and IPT modes compete amongst themselves
Issues
2. Vehicles- Overcrowding
Tata Magic
Official seating capacity of 7 passengers
In actual practice, upto 14 passengers are carried at a time to make the operations viable
Issues
Overcrowded Vehicles
3. Fares
Minibus fares are regulated by the Transport Department at the State level.
The actual fares charged depends on each individual conductorIn most cases, fare charged< prescribed fares
Issues
4. Non Adherence to Schedules Minibus
RTO doesn’t prescribes schedules
No route managers, therefore bunching, unreliable operations
Tata Magic
RTO doesn’t prescribes schedules
Route Managers (appointed by the operators) manage dispatch of vehicles at specific points,
Issues
5. Infrastructure
No designated stops for either Tata Magic or minibuses
No depots, parking spaces
No designated maintenance, washing and repair facilities
Issues
Infrastructure
No designated mini bus stop
Regulation and Enforcement
Parameters Regulation Enforcement
Routes/Permits O x
Vehicles O x
Fares O x
Schedule X x
Infrastructure X x
Quality of Service X x
X denotes absence of regulation/ enforcement
Hidden Beneficiaries
Beneficiary DescriptionMiddlemen/agents They benefit from the complex regulatory processes in
place, and partake in rent seeking activities to help applicants circumvent this system
RTO It has been reported from surveys that some officials within the RTO partake in the rent seeking process, in collusion with the middlemen/agents
Traffic Police They are benefitting from the system by allowing illegal operations to continue in exchange for monetary compensation. Specifically, it was observed that Tata Magic vehicles with rural permits operate illegally within city limits, through the payment of bribes to Traffic Police
1. Lack of Integrated System
Tata Magic, minibuses and formal buses compete with each otherDo not operate in integrated/complementary manner
Key Challenges-IPT
2. Poor Quality of ServiceLow fares & need to maximize revenues per trip lead operators to overload their vehicles beyond their official seating capacity, leading to overcrowdingOperators focus on providing service mainly during peak periods to maximize revenue, resulting in unreliable services during off-peak periods, which have lower demand
Key Challenges-IPT
3. Challenges faced by Operators
Long working hours (typically 12-14 hours per day) and generate low net earnings. Majority of the minibus drivers (55%) earn in the range of Rs. 10,000 – 15,000 per month, while 45% are reported to earn Rs. 5,000 – 10,000 per month.
Competition between operators is further impacting the business.
Operating in the unorganized sector with irregular incomes has impacted their credit history, resulting in many loan defaulters
Minibus and Tata Magic drivers lack access to formal sector employment benefits such as pension and insurance
Operating for long working hours has an impact on physical health of drivers
Drivers have to constantly face harassment from Traffic Police and middlemen/agents
Key Challenges-IPT
Remedial Measures
1. Increase compliance, stop encroachment, under cutting (public notices, spot checks)1. Overloading2. Operating outside route limits3. Old vehicles
2. Develop roadmap to move to BS IV compliance by 2017 (National Green Tribunal Order)
3. Create public information & data about routes, buses, stops for intermediate public transport
Incremental Actions
Increase Compliance
Public notices, Spot checks for overloading, low fare charging & old vehicles
Enforcement by Police
Technologies can be used – speed governors, GPS based monitoring (Will have similar costs)
Impounding of vehicles
This has been demonstrated again in Nairobi with the ‘Digital Matatu’Matatu route-mapping exercise conducted jointly by Columbia University and University of NairobiAs of today, 120 routes have been mapped and geocoded and available for free useThe map has been adopted by the government of Nairobi and has been made the official ‘Nairobi Matatu Map’The map is also used and referred to by Matatu drivers and the general publicThis publicly available transit data, has proved to be a valuable resource for the government as typically there is very little data available for public transport planning in Nairobi.
Global Case Study-Nairobi, Kenya
Create public information – Digital Matatus Initiative (Nairobi)
Public notices specifying timeline of April1, 2017 to upgrade to BS IV norms
No new permits shall be issued to vehicles that do not comply with BS IV norms after April 2017
Government can create a fund – for route associations, operators to access to finance new vehicles
Government can tie up with financial institutions like banks to provide loans and act as guarantors
Roadmap to BSIV
Comprehensive Approach
Comprehensive Approach
Develop City Wide Reform Plan
Create Unifying Authority
Create Options for IPT operators
and Route Associations
1.City wide Reform Plan
Develop a detailed public transport demand study for the city Classify corridors and routes for
Big bus operations- Trunk Routes (Grade A Routes)Mini/midi buses- Lower Demand Ods (Grade B Routes)Tata Magics – Realigned as Feeders (Grade C Routes)
Preliminary estimates suggest 30-40% demand will be for big buses, 30-50% demand will be for midi and mini buses and 10-20% demand will be for TATA Magics
2. Create Unifying Authority
Four Options:
1. Regional Transport Authority (RTA) takes the mandate of unifying transport authority for public transport planning, regulation and management
2. Transit Agency is given the mandate to plan, coordinate and manage all public transport services in the city
3. Existing Unified Metropolitan Transport Authority (UMTA) created as part of the JnNURM program plays the role of integrated planning, regulation and management of public transport services
4. UMTA with enhanced power under the Road Transport and Safety Bill 2014
3. Create Options for IPT operators & Route Associations
1. Transit Agency contracts private operators to operate big buses on major arterials on grade A routes
2. Tata Magic Operators & Route Association Members - 1. Realigned as feeders2. Come together and form companies to operate big buses,
alternatively upgrade to mini/midibuses3. Exit the system
3. Mini bus operators to upgrade to midi buses,1. Operate complementary to big buses on low demand ODs, or2. Come together and form companies to operate big buses3. Exit the system
Main Commitments Required
Repurposing the TATA MagicsCommitment to moving to BSIV by 2017Managed Subsidies Land for depots and terminalsNegotiating with private operators, route associations Capacity building for private operators
ITS in Informal Transport
ITS
FARES
VEHICLES
INFRASTRUCTURE
QUALITY OF
SERVICE
SCHEDULES
ROUTES
ITS in Informal Transport
GPS
Missed Stops
Missing trips
SchedulingPassenger
Information System
Route Deviation
ITS in Informal Transport
CCTV
Women’s safety
Crew Operating
HoursOverloading
ITS in Informal Transport
ETM
Fare Leakage
Passenger Travel Data
Route Rationali
zation
Scheduling
EMERGING TRENDS
Ride-sourcing Platformsare disrupting informal markets.
Car / Taxi
Auto Rickshaw
Indian company
Though mired in regulatory issues, P2P models are well developed in India. Ola Cabs bought TaxiForSure for $200 million in a cash and stock deal— the second-ďiggest ever iŶ IŶdia’s fledgliŶg startup world in 2014.
Auto Rickshaw aggregation is still in early stages in India but is gaining scale via growing startups and inclusion of rickshaws on the Ola and Uber platforms.
P2P B2C Auto rickshaw Booking (P2P)
Taxi Booking
Taxi Rental
Car Rental
NEW TRENDS IN IPT
Trend 3: Commuter Experienceis driving new businesses.
Driver Training
Transit Apps
Easy Payments
Driving Schools Trip Planning & Schedules
Aggregator of Aggregators
Traffic
Indian company
Driving Programmes
Automotive companies like Maruti, Toyota etc. have their own driving schools. In PPP models with the government, these offer most of the driver training in the country.
Transit Apps are growing at an phenomenal pace globally and in India. With open data, smartphone penetration, and technological advancement, this area will see a lot of activity.
IPT providers like Ola Cabs, Uber are at the forefront with offering commuters to pay through mobile wallets. Banks are also joining hands with PPP projects to provide payment cards, which can also function as debit cards. However, no startups have emerged in this area to really facilitate seamless payments.
Benefit to Consumers
IPT is integral to satisfy mobility needs of the people
There is a need to formalize the informal system
The strategy comprises of:
Incremental ActionsComprehensive Approach
ITS can go a long way in streamlining IPT
Conclusion
Thank you!