Overcoming Challenges of Integrating Urban Transport System

Overcoming Challenges of Integrating Urban Transport System Jaipur Bus Transforming Transportation Jan 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

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

Daily Revenue and Fare Collection Launch of CBS (July2010) Drop in Ridership (Diwali) Drop in Ridership (Winter Vacation) Spurt in Ridership (Val.Day) Shift to Stage based fares

Weekly Revenue and Fare Collection Launch of CBS (July 2010) Drop in Ridership (Diwali) 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) 3.16 Cost (rspl) 41.56 Bus km per day 223 Bus km per month 6,356 Monthly Expenses Insurance 5,213 Diesel 83,587 Salaries 93,489 Other expenses 45,251 Tires 6,483 Total Exp. per month 234,023 Operating cost per km 36.82 Fixed Costs Cost 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 60 EMI Loan (21,632) EMI per KM (Rs.) 3.60 Return Rate 15% Term of payment 5 No of EMI 60 Fixed Cost per KM 3.40 Total Costs Deprecation (Rs. / Km) 0.018 Fixed Cost (Rs. / Km) 3.40 Operating Cost (Rs. / Km) 36.82 Total Cost (Rs. / Km) 40.24 Total Income Revenue (Rs. / Km) 25.77 Total Cost (Rs. / Km) 40.24 Net 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) 3.16 Cost (rspl) 41.56 Bus km per day 223 Bus km per month 6,356 Monthly Expenses Insurance 5,213 Diesel 83,587 Salaries 93,489 Other expenses 45,251 Tires 6,483 Total Exp. per month 234,023 Operating cost per km 36.82 Fixed Costs Cost 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 60 EMI Loan (21,632) EMI per KM (Rs.) 3.60 Return Rate 15% Term of payment 5 No of EMI 60 Fixed Cost per KM 3.40 Total Costs Deprecation (Rs. / Km) 0.018 Fixed Cost (Rs. / Km) 3.40 Operating Cost (Rs. / Km) 36.82 Total Cost (Rs. / Km) 40.24 Total Income Revenue (Rs. / Km) 35.44 Total Cost (Rs. / Km) 40.24 Net 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 You
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Overcoming Challenges of Integrating Urban Transport System

by EMBARQ - The WRI Center for Sustainable Transport

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