1. Urban Mobility India conference 6th December 2012

2. Transportation- Emerging Trends
Single Step Entry
Driver Friendly
Passenger Infotainment
Onboard
GPS
Better Aesthetics
Easy access for disabled
Passenger Comfort

3. Transportation- Emerging Trends
Single Step Entry
Driver Friendly
Passenger Infotainment
Onboard
GPS
Better Aesthetics
Easy access for disabled
Passenger Comfort

4. Transportation- Emerging Trends
Single Step Entry
Driver Friendly
Passenger Infotainment
Onboard
GPS
Better Aesthetics
Easy access for disabled
Passenger Comfort

5. Transportation- Emerging Trends
Single Step Entry
Driver Friendly
Passenger Infotainment
Onboard
GPS
Better Aesthetics
Easy access for disabled
Passenger Comfort

6. Transportation- Emerging Trends
Single Step Entry
Driver Friendly
Passenger Infotainment
Onboard
GPS
Better Aesthetics
Easy access for disabled
Passenger Comfort

7. Transportation- Emerging Trends
Single Step Entry
Driver Friendly
Passenger Infotainment
Onboard
GPS
Better Reach to Public
Easy access for disabled
Passenger Comfort

8. Transportation- Emerging Trends
Single Step Entry
Driver Friendly
Passenger Infotainment
Onboard
GPS
Better Reach to Public
Easy access for disabled
Passenger Comfort

9. Transportation Network- Latest models
Hub and Spoke Model
Hub and Spoke Model involves transportation of goods using heavy vehicles along major highway corridors. (A-B)
The distribution inside the cities is done using light/medium duty vehicles.
Similar concept is used to transport passengers inside cities. The “Feeder bus network uses BRT for mass transit and ICV’s for local transport. A B

10. Transportation Network- Latest models
Bus Rapid transport system (BRT)
Dedicated bus lanes for mass transit.
High speed corridors with excellent frequency of buses.

11. Economics of Intercity buses
Reason for increase in operating expenses is to provide better comfort, more safety, improved aesthetics and technological upgrades to meet stringent emission norms.

12. Fuel
Major constituent of vehicle operating cost. Typically contributes 40-50% of overall operating cost.
Customers have option to choose between diesel, CNG, hybrid and Electric powertrain options
Diesel price is linked with global crude prices and hence availability of fuel and price movement issues exist in long term.
Hybrid/ Electric options are very environment friendly but infrastructure for charging and high cost of these systems is an issue currently.
With the need to reduce emissions to Euro4/ Euro 5 levels, vehicles are fitted with SCR. These devices require urea solution for operation which increases the total fuel cost.

13. Vehicle Maintenance
To maintain high uptime of transportation system, vehicles need to be maintained periodically.
Preventive maintenance ensures excellent service availability while ensuring good overall life of vehicles.
Items such as Tires, consumables, grease and damaged parts need to be replaced on periodic basis.
Maintenance of vehicles require dedicated service depots and adequate stocking of parts. A centralized stores management system would be required to order parts/ manage inventory.

14. Driver/ Conductor
Availability of skilled drivers is an issue currently.
Trained drivers from proper Driver training institutes is necessary. AL currently has 2 institutes running and is setting up another 4 institutes across the country.
Conductors are currently being used for cash collection on a daily basis.
Alternative is to use e-ticketing system ( usage of smart cards)

15. Statutory Duties & Levies/Insurance/ Administration
Statutory levies such as parking charges, toll fees, road permit costs need to be borne by transport organizations.
Vehicle insurance is needed to cover for accidents/ natural calamities/ riots.
Administration department is needed to manage the availability of vehicles for public service.

16. Financing of buses for urban transport
Current transportation system depends on various unorganized sectors to ensure vehicle availability.
The model proposed in this presentation covers consolidation of various sections under a single cloud operated by large OEM.
The OEM becomes an one stop shop for state transport organization.
The high capex required for purchase of vehicles is avoided and allows deployment of more vehicles.
AL has implemented various such models across its customer base. The notable ones include:
SLCTB- Sri Lanka
Lagos – Nigeria,
Delhi – DTC and DIMTS.
While models operating in Nigeria and Sri Lanka are self sustaining transport models, the models in Delhi requires a subsidy from government.

17. 70% of revenue allocated for above expenses
Sri Lanka Model
Zero subsidy, cash positive model.
Daily collections are deposited into escrow a/c
LAL (Associate company of AL) only provides vehicles on financial lease.
Agreed revenue sharing:
LAL- 20%
SLCTB-80%
SLCTB
CONDUCTOR
LAL
TICKET
COLLECTION
FINANCING
FUEL
DRIVER
INSURANCE
PERMIT/ ROAD TAX
MAINTENANCE
10% of collections deposited in escrow a/c set off against actuals
70% of revenue allocated for above expenses

18. Lagos Model
Bank purchases vehicle from AL and provides it to operator on financial lease.
Bank ensures cash collected is allocated in foll. Priority:
Vehicle EMI,
Fuel,
Maintenance and
Profit to operators.
LAMATA
OPERATOR
CONDUCTOR
BANK
TICKET
COLLECTION
BUS PURCHASE FROM AL
FUEL
DRIVER
INSURANCE
PERMIT/ ROAD TAX
MAINTENANCE

19. Delhi Model DIMTS Delhi had planned a fleet size of 4500 buses
After 2 years, only 400 buses has been deployed.
Financial and operational capability of operators is a huge bottleneck.
DIMTS
CONDUCTOR
TICKET
COLLECTION
CLUSTERS AL
Can be customized
FINANCING
MAINTENANCE
10% advance + 90% on delivery
3 Months advance+ monthly billing
DRIVER/ REG/
INSURANCE
PERMIT/ ROAD TAX
FUEL

20. Model proposed for Pune
STU
AD REVENUES AL
CONDUCTOR
SUB- CONTRACTOR
DEPOSIT ESCROW A/C
TICKET
COLLECTION
FINANCING
MAINTENANCE
DRIVER/REG/
INSURANCE
FUEL
PERMIT/ ROAD TAX
STU will pay subsidy to AL directly if revenue from ticket collection is less than contractual rate payable to AL.

21. Advantages of Pune Model
AL becomes single point contact for STU and hence would be able to centrally manage the entire transportation system.
High capex can be financed by OEM’s thus facilitating large volume deployment. The vehicle purchase cost avoided can be spent on infrastructure of service depots and with an increased FSI ( Floor space index), revenues of transport corporation can increase substantially.
Can be implemented quickly and due to low initial capex, additional vehicles can be deployed. The increased vehicle parc can improve service in high density areas.
AL’s driver training institutes located across the country can facilitate recruitment of skilled drivers.

22. Pune bus day Initiative
Ply
3000
Buses on
1st Nov
Add new routes
349
High
Frequency
In high density
An initiative by Sakaal times, Sakaal Media group to improve public transportation system in Pune.
PUNE BUS DAY

23. Pune bus day Impact
NO CONGESTION

24. Pune bus day Impact
SAFER TRAVEL

25. Pune bus day Impact
LESS POLLUTION

26. Pune bus day Impact
BETTER COMFORT

27. Pune bus day Impact
NO TIME DELAYS

28. Comparison of fuel consumption between bus, 2 wheeler and 4 wheelers
Pune bus day Impact
Comparison of fuel consumption between bus, 2 wheeler and 4 wheelers
Bus
2 Wheeler
4 Wheeler
Passenger Capacity
Nos 50 2 4
Mileage
Km/ Liter 3 45 16
Fuel Price
Rs/ Liter
51.5 72
Fuel Cost
Rs/ km/ passenger
0.34
0.8
Savings in fuel if people travel by bus instead of 2W/4W
0.46
When implemented across 50 cities, the fuel savings will be Rs 2500 Crores p. A
Assuming 500 new buses are deployed to transport 30 people for 200 kms in a day, the fuel savings will be Rs 13.8 Lakhs(~Rs 50 Crores p.a)

29. Financing of vehicles for JNNURM 2
Source of funds for vehicle purchase under JNNURM 2
North Eastern states
Union Territories
Rest of India
Central Govt 0%
35%
STU’s
15%
20%
Balance funds
85%
80%
50%
The balance funds required to facilitate purchase/ deployment of vehicles can be raised through 2 methods:
Equity investment from private sector,
Debt funding provided by financial institutions.

30. AL’s proposal for JNNURM funding
The funds provided by STU’s/ Central government can be used for investment in service depots and setting up transport routes.
The transportation models implemented already by AL ensures upfront capital expenses is minimal while creating a self sustaining transport model.
AL can co-ordinate setting up of transportation network by identifying suitable partners for vehicle operation, maintenance and administration while providing attractive financing terms.
AL’s driver training institutes can facilitate availability of well trained skilled drivers across STU’s.
STU
50% capex
50% capex AL
Assist in setting up channel partners
TICKET FARE COLLECTION
SERVICE DEPOT
FUEL
DRIVER
INSURANCE
ROAD TAX
PERMIT
MAINT.

31. “Aapki Jeet, Hamari Jeet”