Innovative Strategy towards
organized Public transport .
Case Study : Bhopal
Research Symposium
Urban Mobility India 2014
November 26, 2014
Umang Jain
Nanda Kishore K
Background
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.
Transport Scenario- Small & Medium Cities
Population Mode Share(%)
(million)
NMT PT IPT Personalized
0.5-1 52 9 3 36
1-2 43 13 8 36
2-4 43 10 6 41
Average 46 11 6 37
Source: Study on Traffic & Transportation Policies & Strategies in Urban Areas
Combined PT+IPT Mode Share 31% of motorized trips
Introduction- Bhopal
Madhya Pradesh
• Population : 1.8 Million(2011)
• Area : 648.24 km2
Mode Share
Minibus share is 85% in overall share of
Public Transportation in Bhopal City
Public Transport in Bhopal
Overview of Minibus Sector
Agency Function/Roles
RTO Permits/Routes
Traffic Police Enforcement
Owners Association Regulation, Co-ordination
Drivers Operations
Conductors Operations
Financial Institutions Financing of Vehicle
Vehicle Manufacturers Manufacture of Vehicles
RTO
RTO prescribes the route and the number of vehicles
The methodology followed by RTO is unscientific and
adhoc
There are no periodic revisions to the routes or to the
number of vehicles that ply on the routes
In many cities no new permits have been issued for a
number of years leading to emergence of grey market
Profile of Minibus Owners
Highly fragmented sector
90-95% owners have 1-3 vehicles
Owner Driver
Minibus
operations
Renter Driver Predominant
Drivers
Monthly Earning Monthly Savings
3%
0-1000
10000-15000
42% 38% 1000-2000
5000-10000
58% 59% 2000-3000
Low standard of living
Conductors
Trips/Day/Minibus Passengers/Day/Minibus
9% 3%
15%
1-2 round trips
150-250
2-3 round trips
37%
250-350
3-4 round trips
60% 350-450
76%
3. Revenue/Day/Minibus
8%
23%
2000-2500
2500-3000
3000-3500
69%
Average daily earnings -Rs 3500-4000
Operational Characteristics
# Minibuses 339
Routes 22
Average route length 27 km
Kms/day/ Minibus 180
Seating Capacity 17-28
Fare Structure
Stage(km) Notified Fare(Rs)
Minibus fares are regulated by the 0-2 5
Transport Department at the State 2-3 9
level. 3-7 12
7-10 14
The government regulated fares of 10-13 17
minibuses are the same as standard
13-16 19
Non AC buses
16-19 22
19-22 24
The actual fares charged depends on
each individual conductor, however 22-25 26
the minimum fare is Rs. 5, and it 25-28 28
increases by Rs. 1 with each 28-30 30
successive distance slab.
30-34 32
Costs- Owner Driver
Parameter Cost per Km (Rs)
Operating costs
Monthly Salary –conductors 2.22
Fuel Expenditure 9.33
Permits 0.18
Insurance 0.39
Fitness 0.04
Miscellaneous Expenditure(Challans) 0.93
Total Operating costs 13.09
Maintenance Costs
Tyres , Servicing , Clutch Plates , Brakes , Fitness 1.30
Total Maintenance Cost 1.30
Total Establishment costs 0.19
Total Capital costs 0.75
Total Cost 15.33
Costs- Renter Driver
Parameter Cost per Km (Rs)
Operating costs
Payment to Owner@Rs700/day 4
Fuel Expenditure 9.33
Miscellaneous Expenditure(Challans) 0.93
Conductor 2.22
Total Operating costs 16.48
Total Cost 16.48
Financials- Minibus Operations
Passengers / Minibus/Day : 300-350
Revenue of Minibus/Day : Rs 3400-Rs3500
Cost of Minibus/ Day : Rs 2900-3100
Profit /Day/Minibus (Owner/driver): Rs 300-500
Infrastructure
No designated stops
Poor maintenance
Issues - Minibus
Highly unorganized System
Earnings of drivers and conductors is low
Narrow profit margins for operators
Poor credit history leading to difficulty in access to
finance
Disguised unemployment
Non adherence to schedules/time tables
Unreliable
Poor quality of service
Long halts at bus stops
Poorly maintained vehicles
Formal Bus System- Institutional Structure
The Bus system in Bhopal is operated by “Bhopal City Link
Limited” (BCLL) an SPV formed with Bhopal Municipal
Corporation and Bhopal Development Authority as stake holders.
BCLL started its operation in October 2006, but the full fleet of 39
buses came into operation in January 2007 and full operations
started from March 2007 onwards.
The buses are operated by 2 private operators on Net Cost basis
BRT has been branded as MyBus
20 AC buses operate on the BRT
There are 225 buses operating on 12 routes carrying 100,000
passengers on a daily basis
3 Trunk Routes
8 Supplementary Routes
1 BRT Route
Formal Public Transport Services
BCLL, through 2 private operators, operates 205 semi low
floor buses on 12 routes
4 Trunk Routes(TR) including the BRT
8 standard routes(SR)
Financial- Formal Bus Operations
No of Bus Routes : 8
Average route length : 24 km
Approximate ridership /day / bus : 540
Parameters Value
Cost/km Rs 28
Revenue /km Rs 29
Solution….
Minibus- Standard Bus -Exchange Model
A win-win strategy of exchanging Minibuses to Standard Bus
Exchanging 3 Minibuses (13-22 passengers) to 1 Standard
Bus (35-70 passengers) with out effecting capacities to
customers
Getting Minibus operators to mainstream operating buses of
BCLL
Result in significant improvement in safety, reliability and quality of
service
Bus operations in the city of Bhopal are operationally viable in
financial terms in comparison with minibus
Environmental Benefits
Mode GHG emissions per Pax
per year (t Co2e)
Standard Bus 0.71
Minibus 1.33
Minibus emissions~ 2 Bus emissions
Social Benefits- Users
Reliable, organized service
Clean
Comfortable
Courteous Staff
Front section reserved for women
Reserved Seats for:
Women
Elderly
Disabled
Social Benefits- Minibus Operators
Standard bus operator by virtue of operating standard buses
and being associated with the SPV, commands huge respect
from all sections of society and enjoys certain privileges.
Lesser disguised unemployment
Additional income as members can pursue different
economic activities
Enhanced standard of living
Elevated social standing of families.
Role of BCLL
Reducing/waiving royalty premiums to be paid to BCLL
Sharing a larger percentage of advertisement revenue with the
operators
Creating a integrated fare collection system and distributing
fare revenues across operators based on kilometers operated
Regular driver training to improve fuel efficiency, State of the
art depot and maintenance facilities
BCLL should enforce stiff penalties on ticketless travelers so
that the revenue leakage which is to the tune of 10-15% can
be arrested.
Conclusion
Standard bus- Minibus exchange would result in a win- win
situation for all concerned.
Potential “ Game Changer” if structured and implemented
properly
Minibus operator: This mechanism would elevate his
social position which at present is at a very low level.
BCLL- it will have got rid of the old rickety polluting
minibuses , ensuring better quality of life to Minibus
operators as well as providing the citizens with quality,
reliable, safe public transport system
Thank you!
