Upload
embarq
View
219
Download
0
Embed Size (px)
DESCRIPTION
Presenter - Umang Jain
Citation preview
Informal Transport Sector in India: Issues & Challenges
EMBARQ India
6th Talking Transit Workshop on Integrated Transport Services
November10, 2014
India to be 40%Urbanized by 2030
Background
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.
To conduct in-depth review of Informal transport sector in the country
Objective
IPT Sector
Supply and operating characteristics
Demand characteristics
User perception
Organizational and stakeholder
characteristics
Public Transport Scenario
Prior to JnNURM Scheme, many cities did not even have a formal city bus service
Most small and medium sized cities, continue to have significant IPT patronage
Integration of informal modes of transport with the formal public transport is crucial to address the mobility needs of the people
Overview of IPT Sector
IPTSector
Stake Holders &
Beneficiaries
Infrastructure
Operation &
Finances
Vehicles
Regulations
Enforcement
Bus stops repair
facilities
FareCapital Cost
O & MRidershipRevenueVehicle
UtilizationManufacturers
ModelsPermit
MaintenanceFitness
CertificatePUC
Routes/PermitsVehicles
FaresSchedules
InfrastructureQuality of Service
Traffic Police
Dealers
Insurance Company
Route President
Union/Association of Owners
Transit Agency
Traffic Police
Finance Companies
Middle Men
Users
Conductors
Drivers
Operators / Owners
RTO
Self Driven
Hired Drivers
Salaried
Contract (Fixed amount to be paid to owner )
Routes PermitsDriving-License
Supply and Operational Characteristics
RTO prescribes the route and the number of vehicles
The methodology 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
Routes
MinibusesThere are different types of minibuses, with capacity of 17- 28 seats
Major manufacturers of the vehicle are
Tata Motors
Eicher
Swaraj Mazda
Average age of minibuses is around 10 years, with a vehicle life of 15 years
These vehicles are poorly maintained
Vehicles
Tata Magic
Official seating capacity of 7 passengers
In actual practice, upto 14 passengers are carried at a time to make the operations viable
The capital cost of a new Tata Magic vehicle is around Rs. 375,000/-
Vehicles
Minibus fares are regulated by the Transport Department at the State level.
The actual fares charged depends on each individual conductor.
Tata Magic: Fares lower than minibuses and standard buses, to attract passengers to their service.
Fares
RTO doesn’t prescribe schedules
The schedules are decided by the operators themselves through the mechanism of
Owners Association
Route President
Route Managers
Route Managers (appointed by the operators) manage dispatch of vehicles at specific points
Schedules
No designated stops for either Tata Magic or minibuses
No depots, parking spaces
No designated maintenance, washing and repair facilities
Infrastructure
There are two models in minibus operations
Owner drives the vehicle (owner-driver)
Owner rents the vehicle to a driver for a fixed fee (renter-driver)
Each Minibus operates 150-180km/day
Economics-Minibus
Given each minibus operates 150-180km/day
Net Revenue/day(owner-driver) Rs 600-700
Net Revenue/day(Renter-Driver) Rs 500-550
Economics-Minibus
Owner-driver Renter-driver
Total cost/km 16-18 17-19
Revenue/km 18-21 18-21
Net Revenue/km 2-3 1-2
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)
Each vehicle operates 120-150 km/day
Economics- Tata Magic
Given each vehicle operates 120-150km/day Net Revenue/day(owner-driver) Rs 400-450 Net Revenue/day(Renter-Driver) Rs 350-400
Economics- Tata Magic
Cost
Owner-driver
Renter-driver
Total cost/km 7-8 8-9
Revenue/km 10-11 10-11
Net Revenue/km 2-3 1.5-2.5
The economics of IPT modes is similarThe capital cost of Tata Magic is nearly a third of the Minibus, therefore minibuses are facing stiff competition from them
Economics- Formal PT Vs IPT
ModesFormal Bus Minibus Tata MagicDaily ridership/vehicle
Net (Profit/loss)/km
Daily ridership/ vehicle
Net Profit/km
Daily ridership/ vehicle
Net Profit/km
500-800 Predominantly loss making
300-350 Rs 1-3 250-300 Rs 2-3
Institutional Setup
• Minibus owners association
• Tata Magic owners Association
• Financers
Traffic Police
RTO
IPT Operations
(Traffic Police/ Enforcement
Agency) Middlemen
( Regulation, Licensing,Permits and Routes,
fares)
Institutional Setup for Public Transport
• Urban Development Department
• State PWD
• Transit Agency
• RTO• Traffic Police
• Public Works Department
• Development Authority
• Municipal Corporation
(Urban Planning)
(Transport Planning)(Building and Maintenance
of Roads)
State Level Agency Local level Agency( ) Function performed by the agency
Stakeholder Profile
Private Sector
Owners
Owner's Associations
Drivers/ conductors
Financiers
Middlemen/agents
Vehicle Manufacturers
Public Sector
RTO
Traffic Police
Transit Agency
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. 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 10-20/vehicle /day to the route manager by the owners
2.Owners’ Association
3. Drivers-Personal InformationAge Profile of Drivers
41% of the drivers are in the age group of 30-40
years.
Educational Qualification
60 % of drivers are educated till 8 th standard
Migrants Vs. Locals Work Experience
upto10 yrs 55-60%20% of drivers are migrants
25%
41%
24%
10%
20-30
30-40
40-50
50-60
25%
60%
15%
Illiterate
Till 8th Standard
12th Standard
80%
20%Local
Migrant
3. Drivers-Personal Information
Monthly Earning Monthly Savings
Low standard of living
58%
42%10000-15000
5000-10000
59%
38%
3%
0-1000
1000-2000
2000-3000
4.Conductors- Personal InformationAge Profile of Conductors
55% of the conductors are less than 35 years of age.
Educational Qualification
73% of conductors are educated till 8 th standard
Migrants Vs. Locals
18% of conductors are Migrants
Work Experience
upto10 yrs 75-80%
26%
55%
19%18-25
25-35
35-45
2%
73%
25% Illiterate
Till 8th Standard
12th Standard
82%
18%
Local
Migrant
4.Conductors- Operation Details
Passengers/Day/Minibus
Revenue/Day/Minibus Trips/Day/Minibus
15%
76%
9%
1-2 round trips
2-3 round trips
3-4 round trips
3%
60%
37% 150-250
250-350
350-450
23%
69%
8%
2000-2500
2500-3000
3000-3500
Average daily earnings –
Rs 3500-4000
Finance Companies preferred over banks as they are faster in completing formalities
Major Finance Companies are• Tata Finance • Shriram Transport Finance • Shakti Finance
Tata Magic vehicles cost around Rs. 3,75,000 for a new vehicle
Financed 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)
Tenure of Loan (Yrs)
Rate of Interest EMI/Rs 100,000
3 12% Rs 3500
5 12% Rs 2300
Tenure of Loan (Yrs)
Rate of Interest EMI/Rs 100,000
3 13% Rs 3550
5 13% Rs 2350
Middlemen have permeated the entire system
Driving License
Fitness
Permits for vehicles
6. Middle Men (Agents)
Public Sector Stakeholders
Authority which decides routes to be operated on basis of surveys (ad hoc)
Issues permits (capped) on submission of
1.RTO
Permit fees along with documents
Tax Report
Colour Report
Speed Governor Report
Enforcement of rules and regulationsEnforcement of
2.Traffic Police
Validity of drivers
Validity of permits
Valid vehicle registration and certifications( fitness & PUC)
Checks on illegal parking
Checks on vehicles stopping at designated stops for pick-up/drop-off
Checks to prevent overloading of vehicles
Regulation and Enforcement
Parameters Regulation Enforcement
Routes/Permits
Routes/Permits Vehicles & Fares
are regulated by RTO but the rest of the parameters are largely unregulated
Enforcement is largely lacking in all aspects
Vehicles
Fares
Schedule
Infrastructure
Quality of Service
Demand Characteristics
In most small and medium sized cities,IPT (Tata Magic+ Minibuses) caters to 65% of total PT ridership
65%
35%IPTFormal Bus Transport
User ProfileAge Distribution
Frequency
Purpose 10%
31%
54%
5%
0-20 20-30
30-50 Above 50
65%
12%
17%
6%
Daily
Weekly
Monthly
Occasionally
40%
30%
18%
5%7%
Work
Education
Social
Recreation
Health
85% of passengers lie in the age group of 20-50 years
65% of the users are daily users of the system
70% of trips are predominantly performed for Work &
Education
Trip Length Frequency Distribution
Average Trip length = 5-6Km
User Perception-Issues
1%
23%
57%
17%
2%
Don’t follow rules & regulations
No stadard Fares
Unreliable (Frequency)
Over Crowded
Poor Maintenance
Minibus services are Unreliable
Key Challenges facing IPT System
Tata Magic, minibuses and standard buses compete with each other
Do not operate in integrated/complementary manner
Minibus ridership declining due to
Shift of passengers to Tata Magic
Lower capital cost of Tata Magic
Ease of operations
Lack of Integrated System
Low fares & need to maximize revenues per trip lead operators to overload their vehicles beyond their official seating capacity, leading to overcrowding
Operators focus on providing service mainly during peak periods to maximize revenue, resulting in unreliable services during off-peak periods, which have lower demand
Poor Quality of Service
59%21%
17%
2% 1%
Not reliable in timings
No standard fares and no fare chart provided
Over crowded
Poor condition and maintenance of buses and bus stops
Lack of adherence to rules and regulations
Long working hours (typically 12-14 hours per day) and generate low net earnings. Majority of the minibus drivers (60%) earn in the range of Rs. 9,000 – 15,000 per month, while 45% are reported to earn Rs. 4,500 – 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
Challenges faced by Operators
Roadmap for Public Transport and IPT Reforms
Current level of Motorized Trips
Atleast 50% of Motorized Trips
Public Transport Vision
Vision for Integrated Bus Transport
Reliability /accessibilit
y /frequency
Affordability
Reliability /accessibilit
y /frequency
Safety/Comfort
Standard Bus
Service
Minibus
Tata Magic
Integrated bus system
with enhanced capacity
efficiency and integrated operations
Broad Framework for Reforms
Institutional Capacity(Planning , technical , Coordination)
Institutional Capacity (Contracts & PPPs)
Subsidies
Buses
Land
Integrated operations & BRT
Cu
rren
t P
ub
lic T
ran
sp
ort
S
yste
m
Pu
blic T
ran
sp
ort
Syste
m t
o
meet
futu
re d
em
an
d
Key Enablers for PT Reforms
Bus agency capacity
Planning
Technical
Monitoring and
evaluation
Trained drivers/mec
hanics
Contracts
City/state government
Funds for capex
Operating subsidies
Land
Operators
Access to finance
Integration into formal bus system
Training
Losers (hidden beneficiaries)
Addressing their
concerns
Thank you!