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Executive summary
02
Introduction
03
About SETC/TNSTC
03
06
Project overview
09
11
14
19
20
Financial analysis
26
27
30
34
40
46
50
51
57
58
SWOT analysis
63
Social impacts
65
Success story
67
73
Overall summary
74
Conclusions
75
Page 1
Executive Summary
Public Transport has a major impact on the quality of life in a city, and its environment and the
economy. Transport Authorities globally are facing similar strategic Challenges around worsening
congestion, insufficient transport infrastructure, affordability constraints, increasing emissions and
growing customer needs. To respond to this demanding environment, Transport Authorities can no longer
depend solely on the traditional approach. So to handle the challenging transport operations effectively
transport agencies need well integrated systems which will help them to effectively respond to their
operational and strategic challenges. The Intelligent Transport Management System is one such system.
It is an umbrella of a wide range of technologies that are applied to transportation infrastructure and
vehicles. This uses advanced information and communications technologies to improve safety, relieve
congestion, enhance productivity and reduce emissions. Passenger will benefit from a reduced travel time
and variability, improved schedule adherence, increased usage and provision of real time information to
transit riders. Public safety agencies and officers, as well as the public, enjoy reduced emergency
response times, less aggressive driving, fewer severe accident and improved traffic law compliance. This
fleet management system is proposed to be implemented in Tamilnadu state transport corporation. The
planned system will have the following components
The entire system once implemented will provide operational efficiency, service quality and revenue
generation opportunities to TNSTC. This document provides the project impact analysis of the proposed
system.
Page 2
Introduction
Public Transport is vital to the economy and the way we live. The ability to travel offers all of us
very real benefits and extending mobility is important in building an inclusive society. So the Decisions
that we take now will have an impact for decades to come. This underlines the importance of taking a
long term view of improving the public transport system. In many states in India the majority of public
transport are mainly controlled by state owned transport undertakings (SRTU).But despite of the scale
and dominance in presence, most of the SRTUs are facing serious challenges in meeting both the ends.
Out of 34 reporting SRTUs in India, only five had posted profit during the year 2010-2011.The major
factors contributing to this situation are raising operating cost, fuel cost and relatively stagnant revenue
streams. So to address the problem effectively the SRTUs should take a holistic approach of addressing
all these issues together. Some of the state has already taken many steps to improve the performance of
the public transport systems. But the policy measures alone cant meet the existing and future challenges
in an effective and sustainable way. As a sustainable solution a business transformation model coupled
with large scale IT modernization is needed to turn around the existing situation of transportation network.
An enterprise level IT infrastructure integrated with various technologies like GIS, GPRS, and VTMS has
evolved as a robust business infrastructure for effectively managing and planning the entire transportation
network. States like Delhi, Gujarat and Karnataka has success fully adopted such initiatives to certain
extent. The result of these implementations has proven highly effective in handling the large scale
transport network with greater flexibility and operational efficiency.
This report will analyze the impact of one such enterprise level implementation called GPS
BASED Intelligent Transport Management System (ITMS) proposed for Tamil Nadu state transport
cooperation (TNSTC/SETC).This comprehensive implementation is intended to achieve a business
turnaround of the TNSTC/SETC through Technology adoption, efficiency improvement and revenue
generation. Once implemented the system will provide effective infrastructure to cater the needs of the
travelling public and also provide better comfort, safe, quick and reliable service. The project vision is to
transform the TNSTC/SETC to a profit making organization through effective utilization and planning of
existing recourses and opportunities.
About SETC/TNSTC
SETC/TNSTC is one of the biggest and best transport corporations in India. AIADMK
Government is taking several effective steps to improve SETC/TNSTC service to cater to the needs of the
travelling public and to provide better comfort, safe, quick and reliable service. The services operated by
this Corporation are very popular among the public. The total network has been mainly divided in to two
sections one is TNSTC and SETC for long distance journey. In Tamil Nadu State Transport Undertakings
play a vital role in providing an economic and efficient transportation through a variety of services viz.
Town, Mofussil, Ghat and Express services as well as Inter-State services to neighboring States of
Page 3
Andhra Pradesh, Karnataka, Kerala and Puducherry. Almost every habitation in the State is connected by
bus services.
There are eight State Transport Undertakings functioning under the administrative control of
Transport Department. These undertakings with a fleet strength of 21,169 provide one of the largest
network of bus services in the country and carry 2.10 crore passengers every day through total of around
19167 services. In Chennai Metropolitan Area (CMA) alone, over 55 lakh passengers travel in
Metropolitan Transport Corporation Ltd buses every day.
State Express Transport Corporation Tamilnadu Limited operates long distance Express Services
throughout the State of Tamilnadu linking all important capital cities, historical, religious and commercial
places etc. and adjoining states like Andhra Pradesh Karnataka, Kerala and Pudhucherry. This
Corporation is operating Semi-deluxe, Super deluxe, Video Coach, and Air condition buses. In Indias
passenger road transport sector, State Express Transport Corporation Tamilnadu Limited is setting
benchmarks in a large number of operational areas. Its superior services deliverables and all round
performance have helped it bag a number of awards at the national level in several categories like vehicle
Productivity, Tyre performance and minimum operational cost etc. State Express Transport Corporation
Tamilnadu Limited has become the most preferred transport service provider by the people of Tamilnadu
and its neighboring state. State Express Transport Corporation Tamilnadu Limiteds large objective is to
adopt efficient in its day-to-day activities and bring the best to long distance passengers needs.
At present State Express Transport Corporation Tamil Nadu Limited provides one of the most
affordable public transports to 1 Lakh passengers per day. For more Comfort and Luxury to the travelling
public, SETC introduced 310 Ultra Deluxe Buses with 36 seating capacity with air Suspension and
pollution free system to Inter & Intra State routes.
Page 4
Page 5
21,169
19,167
2002
Page 6
104.04% 104.39%
104.00%
102.00%
99.07% 99.20%
100.00%
98.00%
96.00%
2010-11
94.39% 94.51%
2011-12
94.00%
92.00%
90.00%
88.00%
Fleet Utilization
Occupancy Ratio
120.00%
106.18%
100.15%
100.00%
80.00%
93.79%
87.84%
102.13% 102.25%
89.87% 89.69%
77.50%
68.81%
2010-2011
60.00%
2011-2012
40.00%
20.00%
0.00%
City & Town
Mofussil
Express
Ghat
Overall
Page 7
5.47
5.07
5.37
5.03
5.05
5.25
5.03
4.5
4.15
5.2
4.16
4
3.5
2010-2011
2011-2012
2.5
2
1.5
1
0.5
0
City & Town
Mofussil
Express
Ghat
Average
208.36
200
150
100
89.1
50
0
2010-2011
2011-2012
Page 8
Project Overview
The project is designed to provide total management solutions for TNSTC/SETCs Bus Transport
Fleet by implementing GPS based VTMS system, Passenger Information System, Electronics Ticketing
Solution and Emergency Response System in all in one solution manner. The implementation has been
proposed as
The main objectives of the proposed project are summarized as follows:
To set up a centralized datacentre at Chennai connecting entire Tamilnadu Depots and sub
depots for monitoring and managing the entire fleets and operations. Computer terminals with
connectivity are proposed at divisions and depots for management of system at respective levels.
To provide and support GPS based Vehicle Tracking and Monitoring System in all Tamilnadu
state transport buses for real time tracking of buses and for dynamic fleet management from
Operation Control Room (OCR) and Datacenter (DC) based in TNSTC/SETC central office.
To improve the capability in managing the entire public transport system more efficiently, safely
with a Commuter-friendly approach by introducing real time monitoring and tracking of the
approximately 22,000 bus fleet, information to passengers at bus terminus and bus-stops.
To provide facility for online reservation and real time reservation for any buses to anywhere
at any time even after the departures
To provide GPRS enabled Electronic Ticketing Solutions for real time tracking of ticket sales
and real time reservation facility
Passenger Information System for in selected bus terminus/bus stops for real time information
on arrival and departures to general public.
To provide 24X7 Helpline and toll free number for effective Emergency Response System
(ERS) in case of any accidents or disasters.
Real time information on ticket sales from the moving buses or from the ticket counters by
implementing Electronic Ticketing machine solutions.
To provide real time information on the fuel level of the fleets to manage and adequate fuel
arrangements and also to avoid fuel thefts by using the above solutions.
To integrate the Express Logistic/parcel service with the existing transport system for earning
more revenue
Page 9
To manage the entire transport buses and their timing schedules, Arrival and departures in each
bus terminals and depots.
Page 10
PASSENGERS
ADVERTISERS
&
TNSETC/SETC
OTHERS
OPERATIONAL
MANAGERS
EMPLOYEES
TNSCTC/SETC
Public
Employees
Operational
Efficiency
Social Impact,
Safety
Efficiency
Increase
Revenue
Generation
Comfort
Reduced work
load
Page 11
STAKE HOLDERS
KEY BENIFITS
IMPACT
Enhance
the
reliability
transport
service
and
of
will
information
the service
Increase
in
passenger
satisfaction
and
passenger
revenue
Increase in productivity
Adherence
of services
Increase in employee
efficiency
planned
Effective management of
to
Schedules
real time
Page 12
the process of
bus/passenger insurance
insurance claims
claims
meeting their
commitments in providing
services
Management Information System reports
Delivers
organizational
insights
on buses / passengers.
Improved employee
satisfaction levels
Advertisers
Others
&
Effective diversification of
Page 13
GPS System
The Global Positioning System (GPS) is a satellite-based navigation system that was developed by the
U.S. Department of Defense (DoD) in the early 1970s. Initially, GPS was developed as a military
system to fulfill U.S. military needs. However, it was later made available to civilians, and is now a
dual-use system that can be accessed by both military and civilian users. GPS consists, nominally, of a
constellation of 24 operational satellites.
Page 14
GPS has revolutionized the surveying and navigation fields since its early stages of development.
Although GPS was originally designed as a military system, its civil applications have grown much faster.
As for the future, it is said that the number of GPS applications will be limited only to ones imagination.
GPS for vehicle navigation
When traveling through unfamiliar areas, vehicle drivers often use paper road maps for route
guidance. However, besides being inefficient, searching for a destination using a paper map is unsafe,
especially in busy areas. A new technology, incorporating GPS with digital road maps and a computer
system, has been developed so that route guidance can be obtained electronically with a touch of a
button. The role of GPS in this technology is to continuously determine the vehicles location. In
obstructed areas, such as urban canyons and tunnels, GPS is supplemented by a terrestrial system such
as the DR system to overcome the GPS signal blockage. The GPS-determined vehicle location is
superimposed on an electronic digital road map, containing in its database digital information such as
street names and directions, business listings, airports, attractions, and other related information.
GPS for Vehicle tracking
One of the main applications of the GPs is the real time tracking of vehicles including speed
monitoring and fuel sensing capability. This will enables the user to track their vehicles and get alerts if
the vehicle goes beyond the speed limit. By providing geo-fencing the messages and alerts can be
passed if the vehicles violate the route.
Geographical Information System
GIS is a computer system capable of capturing, storing, analyzing, and displaying geographically
referenced information; that is, data identified according to location.
Applications of Geographic
Information System (GIS) Technology are varied and are breaking new grounds each day.GIS differs
Page 15
from other information systems because of its unique capability of managing geographically referenced or
spatial data. The key skill involved in a GIS is the management of spatial and non spatial data and the
linkage between them. These two types of data are integrated or linked using a unique identifier.
Significant expansion of GIS (Geographic Information Systems) and mapping technologies with
introduction of desktop GIS, mapping software and hand-held Global Positioning Systems technology has
created a surging demand for GIS applications in spatial planning and effective decision making. These
technologies can help to access information with ease and efficiency and also making possible the
analysis of spatial relationships for effective monitoring of different systems.
GIS System
Page 16
Remote Sensing data and techniques and Geographic Information Systems (GIS) provide
efficient methods for analysis of land use issues and tools for land use planning and modeling.
Understanding the driving forces of land use development in the past, managing the current situation with
modern GIS tools, and modeling the future, we are able to develop plans for multiple uses of natural
resources and nature conservation. Satellite remote sensing data is usually the most accurate and up-todate map available in the developing countries. Especially with fast growing towns and cities in the
developing countries, it is practically the only method that can follow up the urban growth. When the
satellite image is rectified to a coordinate system, a satellite map can be produced but a whole lot of
other techniques, processes and models can be used for different planning and analysis purposes. GIS
have been successfully used for spatial modeling and decision-making in land management and
resources by providing, integrating and, analyzing a wide variety of spatial data. Together with aerial
photography, satellite Remote Sensing data forms the base for land use mapping and planning. With
modern Geographic Information Systems, flexible geographic databases can be created for land use
issues.
GPS has been available for civil and military use for more than two decades. That period of time
has witnessed the creation of numerous new GPS applications. Because it provides high-accuracy
positioning in a cost effective manner, GPS has found its way into many industrial applications, replacing
conventional methods in most cases. For example, with GPS, machineries can be automatically guided
and controlled. This is especially useful in hazardous areas, where human lives are endangered. Even
some species of birds are benefiting from GPS technology, as they are being monitored with GPS during
their immigration season. This way, help can be presented as needed. This chapter describes how GPS
is being used in land, marine, and airborne applications.
GIS GPS Integration
A geographic information system (GIS) is a computer-based tool capable of acquiring, storing,
manipulating, analyzing, and displaying spatially referenced data. Spatially referenced data is data that is
identified according to its geographic location (e.g., features such as streets, light poles, and fire hydrants
are linked by geography) Spatial, or geographic, data can be obtained from a variety of sources such as
existing maps, satellite imagery, and GPS. Once the information is collected, a GIS stores it as a
collection of layers in the GIS database. The GIS can then be used to analyze the information and
decisions can be made efficiently. (For example, the decision to build a new road can be made by
studying the effect of one feature, such as traffic volume.) GPS is used to collect the GIS field data
efficiently and accurately. With GPS, the data is collected in a digital format in either real-time or Post
processed mode. A number of GPS/GIS systems that provide centimeter- to meter-level accuracy are
now available on the market. Most of these systems allow the user to enter user-defined attributes for
each feature. Built-in navigation functions to relocate field assets are also available. Pen computer-based
systems are used by some GPS receiver manufacturers to allow the data to be edited and displayed as it
Page 17
is collected. Many industries, including utilities management, forestry, agriculture, public safety, and fleet
management, can benefit from integrated GPS/GIS systems.
Advantages of GIS and Remote Sensing
GIS provides several advantages over traditional system
GIS helps to visualize the data and analyze trends in a spatial context.
Users can view the details and its attributes in a single click
System Features
This combined system provides real time monitoring and tracking of bus to both passengers
and TNSTC. The data centre shares all the information to various sections of the organization based
on the authentication level and business requirement. This means each Depot, Substation and
terminals will have a complete view of the bus traffic, route information, bus delays and other terminal
management information in real time. This enables effective handling of fleet halting and routing with
minimum effort and cost. By reducing the unnecessary stand by time and traffic delays each fleet can
reduce fuel use to certain amount. This savings in fuel use can add up to a huge amount of fuel
savings for the entire organization.
Page 18
ETM Machine
G
PS
D
E REAL
VITIME
CEINFOR
MATI
ON
Page 19
Page 20
fleet. This will help to dispose the loss making buses and acquire new fleets by avoiding unnecessary
maintenance costs.
Passenger Information System
Passenger Information System mainly comprises of LCD/LED display of suitable size at Bus
Depot/Bus Stations/Terminal. Generally a 42 LCD/LED display monitors are proposed to be installed
with local workstation at all bus depot/terminals/Stops.
PIS will help the passenger to get the information regarding the arrival and departures of fleets.
Automatic alerts will be passed to the mobile by registering the alerts option with network provider.
Real time reservation and monitoring including Mobile payment and Tracking alerts
Since all the data will be updated in real-time by introducing this system a person will be able
to reserve ticket for any buses at any time even after the departures of the buses. This will increase
the popularity of SETC among the public as the reservation facility is an important factor in journey.
Logistic and Parcel Service
This service will bring extra revenue to the transport, and by introducing this system a person
can send a parcel from one place to another in lesser time compared to the courier service
Electronic Ticketing Machine
The ETM machine is of advanced generation having built in Keypad, Smart Card, LCD
Display, Printer and GSM/GPRS Modem. Following shall be the primary functional feature of ETM.
This machine can be used for online reservation and logistic registering service in which message will
be delivered to the conductor through this machine
GPRS enabled ETM helps in real time communication with bus and datacenter it will give information
regarding the ticket sales, number of passengers and reservation status.
Emergency Response System
By integrating the existing medical and ambulance service with the centralized datacenter a
toll free number can be given for emergency, accidents and any other problems. Using this toll free
number a message can be passed to the main datacenter from where all the instructions will passed to
corresponding police stations and medical centers
Mobile Application
A mobile application will be developed to increase the popularity and which will be capable of
tracking the buses, getting the status of reservation, online reservation with online payment system.
Also message alert system will be introduced for getting more revenue.
Page 21
Page 22
information will help to coordinates and mange different sections of the organization and external
authorities in an incident management process.
Utility Reports
GPS system can generate real time performance reports which can be utilized to enhance the
management. All the report like Dash board ,Fleet status report, Speed Report, Detail Report, Start &
Stop Report, Begin & End Day Report and Alerts Report be exported to Excel, PDF and many others
formats to used for your internal purpose. This will improve the record keeping and reduce paperwork.
Page 23
Page 24
Alerts
The system provides useful alerts like No GPS Alert, Lower Maintenance Alert, Major Maintenance
Alert, over speed alert which can reduce the maintenance costs and improve vehicle condition which
will result into better ROI.
Page 25
Financial Analysis
The financial benefits of the real time fleet managements are many fold. The primary benefits
like operational efficiency, Resource utilization and improved vehicle routing are not directly
measurable. But it be will easily calculated from different performance indicators and performance
reports generated by the system. The direct and a significant financial impact will from the fuel savings
part. With the real time monitoring a great amount of fuel savings can be enforced through proper rout
planning, reducing idle time, maintaining speed limit, avoiding congestion and route adherence. On an
average 2-3 liters of diesel can be saved from each bus per day if it has been managed efficiently by
reducing idle time and improving speed limit adherence. The total fuel savings can be calculated
based on different level of fuel savings per bus.
Page 26
Cum.Savings in Cr (1 ltr/Bus)
120
100
80
Cum.Savings in Cr (3 ltr/Bus)
60
40
20
Based on the cost savings analysis a project cost recovery can be done within 1.5 years if
each bus can save at least one litter diesel per day. The more the fuel savings the faster the
breakeven point will be reached. Based on the maximum fuel savings of 3 liter/day/bus the project cost
recovery will be done within a short span of 6 months. In summary the expected project cost of 40
crore can be certainly recovered within a range of 6 to 18 months time band.
Page 27
in Cr (1.5
Cum. Savings
Cum. Savings
in Cr (2.5
Cum. Savings
in Cr (1 ltr/Bus)
ltr/Bus)
in Cr (2 ltr/Bus)
ltr/Bus)
in Cr (3 ltr/Bus)
Month 1
2.38
3.57
4.77
5.96
7.15
Month 2
4.77
7.15
9.53
11.91
14.30
Month 3
7.15
10.72
14.30
17.87
21.44
Month 4
9.53
14.30
19.06
23.83
28.59
Month 5
11.91
17.87
23.83
29.78
35.74
Month 6
14.30
21.44
28.59
35.74
42.89
Month 7
16.68
25.02
33.36
41.70
50.04
Month 8
19.06
28.59
38.12
47.65
57.19
Month 9
21.44
32.17
42.89
53.61
64.33
Month 10
23.83
35.74
47.65
59.57
71.48
Month 11
26.21
39.31
52.42
65.52
78.63
Month 12
28.59
42.89
57.19
71.48
85.78
Month 13
30.98
46.46
61.95
77.44
92.93
Month 14
33.36
50.04
66.72
83.40
100.07
Month 15
35.74
53.61
71.48
89.35
107.22
Month 16
38.12
57.19
76.25
95.31
114.37
Month 17
40.51
60.76
81.01
101.27
121.52
Month 18
42.89
64.33
85.78
107.22
128.67
Page 28
Outcomes
Evaluation Process
level.
population
and departures.
Effective Fleet Management and deployment of
Buses.
Increase in revenue for TNSTC
Balance sheet.
Summary
GPS based fleet management system manages the entire fleet operation in real time
It delivers all the bus informations to passengers in real time through terminal display boards,
Mobile phones and internet
Through the fleet management system TNSTC can achieve greater efficiency in operation
management, resource management and cost management
The real time monitoring enforces process adherence of bus crew. This will improve the
efficiency and productivity of each fleet.
The system helps to reduce fuel cost and maintaintence cost based on the real time
performance data.
The savings in fuel usage alone can recover the project implementation coat in six to eighteen
months
Passenger satisfaction and more passenger turn out can be achieved through the project.
Page 29
The project improves the TNSTC image as modernized transport service provider
Greater social benefits and increased economic activities can be achieved as a long term
result of the project
Page 30
GPS outputs for quick medical and fire response. The system is so much more than just a monitoring
system. A GPS map similar to Google maps will pinpoint exactly to the location of accident and the call
center will receive a quick message/call from the emergency response system. The System shall provide
automatic accident detection, online monitoring, and text-to-speech messaging.
It proposes the concept of emergency management system in road transport, discusses the
status and problems of current emergency management. People in Tamilnadu are relying mainly on road
transport so emergency response system has major importance as traffic accidents are increasing day by
day. If an accidents happens at the present situation the victims will not be able to contact the nearest
medical centres or police stations as there is no available centralized emergency numbers for informing
the incidents if the vehicle is in remote places then the situation will be more worst. So in order to
effectively manage and minimize the road accidents a centralized management system is propose in
which all the transport fleets will interconnected with the main data centre in case of any emergency
situation a toll free number will be given for contacting and giving the alert and from the datacentre all the
instructions will be given to the nearest police station and medical centres for giving the first aid since the
location of the vehicle can be precisely calculated using GPS mounted on the vehicle.
Emergency Response
The 24X7 ERS call center helps people to report and alert the agencies through a single phone call.
Once the incident is information is received in the call center call sender send information to all the
agencies for help. The system identifies the location of the incident from GPS data and immediately
Page 31
alerts the nearest Hospitals, Police stations and Fire stations for help. This faster coordination will help
to reduce the response time in incidents so that we can reduce the impact and save passenger life.
Page 32
Despite of the Governments efforts towards the road safety measurements the number of accidents are
become the major concern for the government. Due to rapid urbanization and exponential growth of
vehicles, there has been a steep rise in the number of road accidents. The accident compensation
commitment for the State Transport Undertakings has gone up drastically from Rs.16.03 crore in the year
1991-92 to Rs.123.14 crore in the year 2010-11.So it is extremely important to have an efficient
emergency response system to help the people and STU to handle the situation effectively in case of an
accident. This will create a sense of safety with in passengers and also improve the STUs image as a
service provider.
Key Impacts of Intelligent Transport Management System
Page 33
Page 34
Page 35
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Page 37
When is the
bus
coming???
When
should I
reach the
bus stop to
take my
bus??
Is the next
stop my
destination?
Page 38
Is any of the
bus overspeeding?
Has there
been any
accident?
Where are
the buses??
Have any of
the buses
missed any
scheduled
stop?
Page 39
Year
Capacity
Revenue/LCD/Client
Utlisation(%)
Number of
Total Revenue in
clients/LCD
(Cr)
Year 1
40%
20,000
28.8
Year 2
60%
20,000
43.2
Year 3
80%
20,000
76.8
Year 4
100%
20,000
96.0
Page 40
43.2
28.8
Year 1
Year 2
Year 3
Year 4
The total cost of the total 500 LCD display is estimated to have 2 Cr rupees. The current rate of
LCD advertisement for 10-30 seconds advertisements has been 20,000-25,000 rupees per month. Based
on this market data and capacity utilization a conservative estimate of the four year revenue projection
has been performed. On avergae 6-8 clients has been expected for advertisement. Based on these
estimates the implementation cost can be easily recovered from the LCD display facility. So based on the
existing marketing condition this is a highly profitable initiative with great ROI. The revenue generation
can be also increased by centralized advertisement service for larger clients.
Advertisement on the Inside the Bus Display
Advertising on buses is well-established medium. Advertisement on buses enables highly
targeted advertisements to run in digital format for intervals of 15-20 seconds. Advertisements can be
targeted by day and time as well as by location along a particular route. This mode can be utilized by
large advertisers and local advertisers alike. Considering the following factors
The number of buses that operate on each particular line both ways
The length of each line in both distance and time each way
Page 41
How many times each bus departs during the course of a day
The potential income is very high because of the high number of potential ad exposure per day. In
addition, advertisers can sponsor transport passenger information on particular lines or particular road
segments.
Other advertisement Revenues
Other mode of advertisement revenue comes from the following
Interior part of the Bus like back side of the seat, Window Panel and Stair case.
Exterior of the bus like side part of the bus and back side of the bus.
By putting all these modes together based on the current market rate per one bus can generate minimum
of 5000 rupees in terms of the advertisement. So the revenue generation prospects will be the following
Year
Capacity
Revenue/Bus/Month
Utilisation (%)
Expected
Number of
Total Revenue
in
(Cr)
Buses
Year1
20%
5000
4000
24.0
Year2
25%
5000
5000
30.0
Year3
30%
5000
6000
36.0
Year4
40%
5000
8000
48.0
Page 42
36
30
24
Year 1
Year 2
Year 3
Year 4
Page 43
85.2
62.8
Year1
Year
Year2
Year3
Year4
Revenue from
Total Revenue
Display in (Cr)
Advertisement in
SMS in (Cr)
in (Cr)
(Cr)
Year1
28.8
24
10
62.8
Year2
43.2
30
12
85.2
Year3
76.8
36
14
126.8
Year4
96
48
16
160
Page 44
Stake
Holders
Passengers
Crew
Operation
Convenience
Convenience
Guidance
Comfort
Confidence
Improved Productivity
Satisfaction
Satisfaction
Customer Satisfaction
Planning
Productivity
Improved Revenue
Better
C planning
Passenger Information
o
n
v
OUTCOME
e
n
Real time tracking and management of vehicle
i
Real time Fleet performance
assessment
e
n
parameters
c
Increases the reliability of service,
e
Management System
COMPONENTS
Vehicle Tracking System
TNSTC
Customer
Satisfaction
Improved
Image
based
on
different
G
u
Attract more commuters towards
bus travel
i
Data Centre & Control
Centralized management of
d total transport system
a
Room
High efficiency and Flexibility in organizational planning and operational
n
efficiency
c
e
Confi
Intelligent Transport Management System
for SETC/TNSTC
Page 45
dence
Satisf
action
The proposed smart card system will have fully integrated ticketing scheme with a single card available
for use on all buses of TNSTC. As part of this scheme all Buses shall be installed with new Smartcard
readers. Smart cards shall be issued for all season tickets. The Smartcard reader shall be located to the
right at the entrance door of the bus so that the passengers will have easy access to the reader. The data
from Smart card reader goes to the centrally located real time ticketing server and manage customer
accounts. Based on the option (pre-paid or free pass) the customer selects the tickets. The new
Smartcard reader will not print validity dates on the Smartcard however the reader will display details of
journeys or days of travel left each time you validate the Smartcard. On monthly and annual tickets the
card expiry date will be displayed on the screen of the Smartcard reader. The advantage of smart card
system is that services of bus conductors for long distance journey can be avoided. The new passes will
also boost the roll out of 'smart ticketing'. This will help minimize fraud and ensure that the number of
journeys made by pass holders is accurately recorded for reimbursement purposes. In areas where
buses are not yet fitted with smartcard readers the cards can still be shown to the driver as a traditional
'flash' card upon boarding.
Page 46
General Benefits
OPERATIONS
MANEMENT
Creation of seamless
journeys in SETC
PASSENGERS
approach
networks
Unification of ticketing
Seamless journeys in
multimodal, multi PT
schemes
data
Better control of
revenues & subsidies
Additional appreciated
services when available
Page 47
Operational Benefits
Cost Advantage
OPERATIONAL LEVEL
Additional cost
Card Issuing cost
Ticket printing cost
Value-stored card
disposable contactless single ticket
marketing approach
No mechanical parts
maintenance
Printing of receipts and single tickets
Shorter transaction time (0.2 to 0.5 s
Sales
reduction estimated)
Control
management stations
Page 48
Automation of sales
Less staff effort needed
relationship management
at development stage
operators
Exploitation of customer data Improved
reliability of data and transparent clearing
mechanisms
Page 49
Page 50
Passes to the students studying in schools and colleges during the year 2010-2011.So the smart card
integration will have god social impact once implemented
Cost Benefit Analysis
E-ticketing mode is highly cost efficient method of handling public transport ticketing. This method is
successively implemented in many states in India. The major cost advantages come due to the
operational efficiency which it can achieve in processing, monitoring and issuing tickets. But a direct and
measurable impact it achieves is in terms of increase in ticket revenue through its various interfaces. The
major mode of the proposed E-ticketing facility is printing the ticket through the handheld device. And the
other part includes the ticket booking facility through SMS from mobile phones and internet booking.
These two medium is expected to capture a high growth and popularity in coming years mainly because
of the convenience it offers and the internet and mobile phone growth. Increased use of smart phones will
also facilitate more proneness towards these services. The revenue generation drivers are the following
Advertisement revenue
The E-ticketing, online booking and mobile phone booking will altogether generate an average 1%
growth in total ticket issuance apart from the natural increase in the passenger growth. This is mainly
driven by the convenience and ease these facilities deliver to the passengers.
Online Ticket growth
R = 0.9892
38.22
38.99
39.7698
40.565196
2009-10
2010-11
2011-12
2012-13
20.53
2007-08
2008-09
Page 51
Ticket Growth
Tickets Issues Per year (Cr)
771.20
757.60
750.10
2010
763.56
786.70
778.91
771.20
763.56
756.00
2011
2012
2013
2014
2015
4,673.45 4,673.45
4,627.17 4,627.17
4,591.04 4,581.36
4,545.58
2010
2011
2012
2013
2014
2015
Page 52
2010
2011
2012
2013
2014
2015
Advertisement revenue
Advertisement on ticket is a very effective channel for reaching the target customers. This mode
of advertisement is already implemented in different states and rail networks. The major revenue for
transport network through is expected come from main cities. In cities it is expected to achieve popularity
much faster the growth rate of this mode of advertisement is comparatively less in rural region. But proper
marketing and increasing rural economic activities are expected to drive the growth of ticket
advertisement in rural areas.IN rural areas local brand can take advantage of ticket advertisement with
lower cost compared to other mediums of advertisements.
Page 53
2010.00
2011.00
Year
2012.00
2013.00
2014.00
2015.00
2010
2011
2012
2013
2014
2015
750.10
756.00
763.56
771.20
778.91
786.70
Capacity Utilization %
30%
35%
40%
45%
50%
55%
22.50
26.46
30.54
34.70
38.95
43.27
Page 54
67.96
2010
72.27
2011
76.81
2012
81.44
2013
86.15
2014
90.94
2015
Interservices (e-purse)
E-ticketing enables the use of public transport smartcards for paying for additional services
offered in conjunction with public transport (e.g. parking space payment or retail purchase).This can be
done in collaboration with other third party business in a revenue sharing basis which will generate
additional revenue for TNSTC
Parking and road pricing
The integration of electronic toll collection for road usage or parking with electronic fare
management allows travelers to pay for public transport and private car use with the same card.
Customer relationship management (CRM)
E-ticketing is a strong marketing tool since it enables detailed data collection on the mobility
behavior of customers, which helps to develop targeted marketing and sales strategies. The data sharing
with business houses will be an another source for revenue
Page 55
The system once implemented will expected to attract more passengers towards public transport
The implementation will expected to generate additional 1% of the passenger turn out
This will deliver an additional consolidated revenue of 67.96 core to TNSTC from ticket revenue
and advertisement revenue
Based on the financial prospects this section of the implementation will break even in less than
i.e. the first year of the project will recover the implementation cost. This is based on the
conservative revenue calculation.
E-ticket system delivers extended social benefits to different sections of the society through smart
card implementation.
E-ticketing facility will give a modern face to TNSTC and will improve the operational efficiency
Page 56
The major cost for running this business is transportation (around 40% of operating cost) cost.
Here transportation cost of parcels will be zero because it will be contained by the normal bus
service.
The strength of parcel and courier service is the efficient reach of their service network at
minimum cost. Here we will achieve the largest network access in Tamilnadu with no cost.
The parcel tracking and efficient management, which will attract the customers, will be done
through GIS and VTMS systems implemented as the part of this project.
The cost efficiency and service efficiency which can be achieved by these implementation cannot
be matched by any of the competitor in the market
Service Sharing prospects with larger courier and parcel service companies
Industry Overview
The Indian express industry is set for sizzling growth, despite rising usage of facilities like short
messaging services or multimedia message services. If anything, several large-sized corporate and
multinational express players are keen on acquiring controlling stake in some of established Indian
courier companies. Opening of banking, insurance, retail, aviation and telecom sectors and their
penetration to smaller cities would be the major growth driver. The size of India's courier industry currently
stands at around Rs 7,100 crore (Rs 71 billion) and is estimated to have grown at a CAGR of around 33
per cent over the past decade. At its current estimated size, the courier industry is larger than the tea
industry and close to the size of paper and shipping industries in India. The industry ranks amongst the
fastest growing segments of the Indian economy and over the next five years, it is expected to register a
growth rate higher than of industries such as retail, banking, financial, chemical and automobiles. The
Page 57
industry is highly fragmented with more than 2500 express players and a few large sized players account
more than half of the industry revenues.
The industry contributes more than Rs 1000 crore (Rs 10 billion) to the government revenues by
way of service tax, income tax and other levies and it offers employment opportunity to about a million
people. The organized part of the express industry in India is 65 per cent of the total market. Organized
sector in the domestic market is little less than 50 per cent. The unorganized and semi organized
segments, which consist largely of regional and intra-city service providers and EMS Speed post, account
for the rest. The organized segment, including the international majors' share, constitutes approximately
65 per cent of the total and is made up of a small group of fewer than two-dozen players. Amongst
domestic players Blue Dart, DTDC, First Flight and Overnight Express are leading express services
companies in India while UPS, FedEx, DHL and TNT are leading international players presence in the
country. The industry players earn about 52 per cent of its revenues from document parcels. Document
parcels weighing less than 300 grams account for about 70 per cent of the volume of document parcels
and intra-city deliveries account for nearly 37 per cent of their turnover. Challenges faced by the industry
include matching up to the rising expectations of the customer, expanding the network to reach hitherto
uncovered areas, containing rising fuel and freight costs and retention of manpower.
All of the above challenges which the major players face will be a natural opportunity for TNSTC
network because of the already existing infrastructure and network. The presence of bus service in most
of the towns will help in exploring the untouched areas of Tamilnadu; these areas are generally not
covered by large organized companies like Bluedart and Fedex. The speed of delivery will be definitely
better than other market players as the presence of fleet will ensure timely delivery.
Business Case Analysis
The courier integration is the major part of the project which is expected to generate an additional
income TNSTC. The courier industry is mainly focused on urban areas. This is the area where all the
organized private players are making their major part of the revenue. The major revenue for the courier
services comes from the main cities. So the case analysis has been performed based on the Chennai city
area. Based on the detailed analysis of Chennai city a very moderate estimate has been calculated for
other part of the state. The following factors are considered for analyzing the revenue generation
prospects of Chennai city courier service.
1. The current city Population and the population growth rate @ 0.78
2.
Fleet capacity and Fleet growth rate of MTC (From TNSTC data)
Page 58
4,717,599
4,754,397
4,791,481
4,828,855
2011
2012
2013
2014
2015
Total Fleet
2011
2012
2013
2014
2015
Page 59
PACKETS/DAY GROWTH
100,000
2011
105,000
2012
110,250
2013
115,763
2014
121,551
2015
38,325,000
40,241,250
2012
2013
42,253,313
44,365,978
36,500,000
2011
2014
2015
Page 60
Revenue
1,481
913
968
2011
1,031
1,088
2012
1,163
1,223
2013
1,312
1,548
1,376
2014
2015
2011
57.49
2012
60.36
2013
63.38
2014
66.55
2015
Page 61
60.23
2011
63.24
2012
66.40
2013
69.72
2014
73.20
2015
Page 62
SWOT Analysis
STRENGTH
WEAKNESS
players
OPPORTUNITY
THREATS
Page 63
Summary
Courier and Parcel Service integration will be feasible option for TNSTC for revenue generation
TNSTC already has the infrastructure required to provide the parcel and courier service
Once completely integrated this will be naturally become the largest courier network in
Tamilnadu
This service will generate more than 60 crore rupees of additional revenue in the first year. Most
of the revenue will be from Chennai metro area.
Page 64
Social Impacts
This project will change the outlook of Government among the public. This Project is designed to provide
maximum safety and comfort to passengers and at the same time added revenue to the government. The
Intelligent Transport Management System project has several social benefits as
Safety improvements
Delay reduction,
Safety improvements
The objective of the transportation system is to improve seamless trip with safety of travel.
Crashes and fatalities are undesirable occurrence of the transportation system. The GPS Transportation
System helps to minimize the risk of accident occurrence. Monitoring vehicle Speed and its location will
reduce the number of crashes and the probability of controlling number of fatality
Delay Reduction
Delay reduction and travel time savings is a major goal of the project. Benefits of this measure
also include reducing the variability of time in transit and increasing the reliability of vehicle arrival time.
Increased use of public transport
With the introduction of Intelligent Transport Management System has been made possible to
provide real-time passenger information to the traveling public inside buses, at bus stops and at bus
terminals. The information displayed informs the passengers about the details of the next arriving bus
stop, route no, destination expected time of arrival/departure, which brings in lot of comfort to the traveling
public. The solution also helps in reducing travel time and reduction of congestion of roads. This
increases the confidence of public to reach their destination on-time and also reduce travel uncertainty.
Hence ITS will contribute for shifting people from using private vehicles to public transport.
Reducing Travel Uncertainty
One of the interesting insights realized by transportation planners in recent years is to provide
greater reliability and predictability in transport, and not just to move people to their destinations faster. An
Page 65
unfortunate aspect of most current transportation systems is that the travel time varies widely from day to
day. This can be due to weather, congestion, traffic incidents, or a large number of other external factors.
The real time Fleet management system can help to reduce travel uncertainty by smoothing traffic and
informing exact arrival of vehicles. It can also provide improved real time and predictive information that
allows travelers to plan their trips better.
Reduction in Congestion
With state of the art and real time information dissemination of information possible for all
Stakeholders immediate corrective steps can be taken to avoid areas of accidents, high density of traffic
and help ease congestion. Also, with increased modal shift from other personnel modes. The system is
expected to ease traffic congestion on roads.
Reduction in accidents
With the improved efficiency and management of transport across city, improved training and two
way communication capability between driver and operations staff it is expected to reduce accidents. With
the use of incident management facility in the system, it will be possible to ensure quick relief in case of
accidents, hold ups, breakdowns etc. This will also minimize fatalities with immediate help coming from
the right quarters.
Reduction in emission levels
While the transport network becomes highly efficient, punctual, passenger friendly it is bound to
translate to citizens using own vehicles patronizing public transport. This will result in reduction of
emission levels, as less number of vehicles will be using the roads.
Increased Economic Activity
With the efficient transportation system the travel economic and trade related activities are
expected to increase. The better transport network will help the rural traders to engage in to more and
more economic activities this will eventually improve the financial and developmental status of the people
in various section of the society.
More Employment Creation
Regional employment is often an important government objective. The impacts of increased economic
activity will generate more and more employment which includes both created and relocated jobs. These
regional employment opportunities will improve the household income which leads to better quality of life
of people.
Social inclusion
An efficient transport system could contribute to addressing the problem of social exclusion by improving
accessibility and mobility. Better mobility will create more opportunities for the people to participate in
economic activities and social activities. This will create more social inclusion for the people.
Page 66
SUCCESS STORY
Overall: 26 29 km/hr
Page 67
Page 68
Avg. Rating given to BRTS by users for 1st month: 8.34 out of 10
Avg. Rating given to BRTS by users for 2nd month: 8.88 out of 10
Page 69
Environment: Due to expansion of bus system, both through AMTS and BRTS conversion of AMTS and
Auto Rickshaws to CNG, significant improvements in air quality have been observed. From a position 3rd
most polluted among the 88 critically polluted cities monitored by CPCB, the city has come down to a
level of 66th rank.
Economic Social Impacts: Two types of social impacts are visible. The routes of BRTS network went
through the areas inhabited by the poor. Improved accessibility would not only contribute to widening of
the employment market of the poor and also add to physical up gradation of the area. There are visible
signs of these impacts in certain localities. System wide impacts, to become visible, will take some more
time. Land value impacts are also visible. Several project schemes now advertise their location n the
BRTS corridor as major marketing strategy.
User Satisfaction: BRTS User surveys are taken every month by distributing surveys at the station.
Every month surveys are collected and user satisfaction rating is calculated. BRTS got average rating of
9.0 out of 10 in the eleventh month from its users, which is in tune with the past months of commercial
operation. Survey asks for input on safety while crossing the streets, operator driving, frequency of
service, ease of fare payment and cleanliness at stations.
Information Availability: Real Time passenger information is made available at the stations.
Announcements are in English and Gujarati.
2. Automatic Fleet Management System for DTC Using GPS and GIS
Page 70
Display of vehicles at Workstation using ARC Info suite and VC++ based application software
Public Mobile Radio Trunking System (Wireless Communication network) for Collecting data from
buses. Area of coverage is 1500 square kms
Page 71
Different Icons were provided for different distress messages like fire,
CNG leakage etc., from various buses on the GIS map at the control
station, online. For e.g. If a bus in the fleet sends a fire message, bus
under fire Icon will be generated and flashed on the GIS map
Finding out the shortest and fastest path to the bus in distress on the GIS
map and generating the directions of that path for sending relief vehicle
Creating and / or modifying daily duty slips, which are provided to the
drivers prior to the commencement of his shift, by selecting the bus from
the GIS map. These slips consist of information pertaining to the route(s)
and schedules to be operated on a particular day. This information will
be downloaded to the VMU (Vehicle Mounted Unit) over the radio
network before the bus leaves the depot.
The implemented system is success fully running with high passenger turn out and greater efficiency in
operation.
Page 72
Advertisement
Revenue
Revenue From
Benefit
Total
Net
Revenue From
From
Courier
from Fuel
Benefits
Benefits
Service
Savings
PIS
E-ticketing
in Cr
Year1
NC
NC
NC
NC
NC
-100
Year2
62.8
30.54
60.23
42.89
196.45
71.45
Year3
85.2
34.7
63.24
42.89
226.03
243.91
Year4
126.8
38.95
66.40
42.89
275.04
335.81
Page 73
Overall Summary
Parameters
Planning
Revenues
Operational efficiency
End User
Society
Benefits
Increased Reliability
Advertisements
Dynamic Re routing
Fuel Economy
Monitoring Performance
Incident Management
Breakdowns
Accidents
Lesser Complaints
Improved Mobility
Premium Image
Saves Anxiety
Page 74
Conclusions
The project will improve overall operational efficiency, Financial efficiency and resource utilization
efficiency of TNSTC at all levels.
The project will open some additional revenue generation streams to TNSTC without any extra
investment. These opportunities can be utilized through effective marketing and planning.
The total project is financially viable and generates a total revenue of 196.45 Crore rupees in the
first year after implementation.
A total of 1% increase in passenger turn out will be achieved due to the impact of project benefits.
Integrating the parcel and courier service with transport service will be a financially viable option
for revenue generation. This will generate an estimated revenue of 60 Crore rupees.
The Passenger Information System will generate additional revenue of 62.8 Crore through
advertisement in the first year after implementation.
The E-ticketing implementation will generate 30.54 Crore through advertisement in the first year
of implementation.
The real time monitoring system implementation will create an estimated amount 42.89 Crore as
a result of fuel savings.
A real time fleet information experience will delivered to the passengers through the project.
Passengers get greater flexibility in travel planning, ticket booking and bus information availability.
A travel model shit is expected as a result of the project. More and more two wheeler, three
wheeler and wheeler passengers will chose bus transport as a result of service efficiency and
service quality.
Reduced traffic congestion and less use of vehicles due to the model shift will reduce fuel
emissions and pollution.
Better service delivery will improve passenger mobility, increased regional economic activity and
social inclusion prospects.
The project will create greater passenger satisfaction levels through increased safety, reduced
travel time, less bus waiting time and less traffic congestion.
The project is well aligned with the Governments efforts to improve transportation system and the
people will be able to see many visible benefits of Governments efforts through the project.
The project will improve the overall performance of TNSTC and also create a multi dimensional
socio economic impact.
Page 75
UL Technology solutions
IT and Geo-spatial Division of ULCCS Ltd
Phone: +914713081210, +914713057936
Corporate Office
The Uralungal Labour Contract Co-operative Society Ltd. (ULCCS Ltd)
P.O Madappally College, Vatakara, Kozhikode, Kerala. 673 102
Phone: +91 496 2514042, 2516402, Fax: +91 496 2516402
www.ulccsltd.com|www.ulcyberpark.com|www.ults.in