By Umang Jain/WRI India

1. ITS IN INTERMDIATE PUBLIC
TRANSPORT AND SAFETY
Umang Jain
Managing Associate
WRI India
Sustainable Cities
Umang.jain@wri.org
New Delhi
April 07, 2016

2. India to be 40%Urbanized by 2030

3. Scenario
Existing Public Transport is overloaded

4. Informal Public Transport system
IPT is playing an important role in filling the
gaps in meeting daily mobility needs.

5. Pre JnNURM…..
20 cities had formal PT system
Mostly big cities had bus system
Most cities relied heavily on IPT system
Shared Autos
Minibuses
Tata Magic
Taxis

6. Overview of IPT Sector
Stake
Holders &
Beneficiaries
Infrastructur
e
Operation &
Finances
Vehicles
Regulation
s
Enforcement
Bus stops
repair
facilities
Fare
Capital Cost
O & M
Ridership
Revenue
Vehicle
Utilization
Manufacturers
Models
Permit
Maintenance
Fitness
Certificate
PUC
Routes/Permits
Vehicles
Fares
Schedules
Infrastructure
Quality 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
Driver
s
Salaried
Contract
(Fixed
amount
to be paid
to owner
)
Routes
Permits
Driving-
License
MinibusSector

7. Private Sector Stakeholders

8. 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. Tata Magic & Minibus Owners

9. 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/vehicle /day to the route manager by the
owners
2.Tata Magic Association

10. Association is headed by a president
President’s source of power is the # permits
Engages with RTO, Traffic Police and other departments on
behalf of owners
Not involved in daily operations
Important stakeholder due to links in the system
2.MiniBus Association

11. 3. Drivers-Personal Information
Age Profile of Drivers
39% of the drivers are in the age
group of 30-40 years.
Educational Qualification
58 % of drivers are educated till 8
th standard
Migrants Vs Localites
23% of drivers are migrants
Work Experience
upto10 yrs –55%

12. 3. Drivers-Personal Information
Monthly Earning Monthly Savings
Low standard of living

13. 4.Conductors- Personal Information
Age Profile of Conductors
59% of the conductors are less than 35
years of age.
Educational Qualification
70% of conductors are educated till
8 th standard
Migrants Vs Locals
14% of conductors are Migrants
Work Experience
upto10 yrs – 80%

14. 4.Conductors- Operation Details
Average daily earnings -Rs 3500-4000
Passengers/Day/Minibus
3. Revenue/Day/Minibus
Trips/Day/Minibus

15. Finance Companies preferred over banks as they are faster
in completing formalities
Major Finance Companies are
Tata Finance (62% market share)
Sriram Finance (19% market share)
Shakti Finance (19% market share)
Tata Magic vehicles cost around Rs. 3,76,000 for a new
vehicle
Financed at 11.5% rate of interest for a term of 5 to 7 years.
5.Finance Companies

16. 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)

17. Permeated the entire system
Driving License
Fitness
Permits for vehicles
Temporary Permits: Agent Charges around Rs 2000 which
officially cost Rs 750
Beneficiaries of the above include
Officials in permit branch of RTO ,
Inspectors of fitness department etc
Agent earns up to Rs 350 per transaction
Permanent Permit: Agent Charges around Rs 4000 and earns a
profit of Rs 700-800 per transaction
6. Middle Men(Agents)

18. Public Sector Stakeholders

19. Decides routes to be operated on basis of
surveys(ad hoc)
Issues permits(capped) on submission of:
Permit fees along with documents
Tax Report
Colour Report
Speed Governor Report
1.RTO

20. Enforcement of rules and regulations
Enforcement of
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
2.Traffic Police

21. Detailed Costs & Revenues of Public Transport
Operations
Parameter
TATA Magic:
No
Overloading
Mini Bus: 6m Big Bus: 12m Midi Bus: 9m
# in operation 1375 2130 320
Revenue/Km 10.40 10.40 5.20 19.33 30.00
Operation Costs/Km 11.08 8.77 11.08 20.41 42.00 24.41
EMI 0.41 0.41 0.41 4.00 2.00
Maintenance and depreciation 0.89 0.89 1.37 7.00 1.37
Permit, Insurance and Taxes 0.11 0.11 1.00 0.37
Fitness 0.01 0.01 0.04 0.04
Fuel 4.07 4.07 4.07 10.00 25.00 12.00
Conductor remuneration 0.15 0.15 0.15 2.50 1.50 2.50
Miscellaneous 0.44 0.44 0.44 0.22 2.00 0.22
Payment to the Owner 3.70 5.20
Driver Remuneration 5.00 5.00 1.50 5.00
Avg Age of Vehicle 5 5 8 5 NA
TATA Magic
1. TATA Magics and mini-buses not profitable if they don’t overload
2. TATA Magics undercut minibuses, which in turn undercut big buses leading to low quality of
service.

22. 1. Overlapping Routes
Significant overlap of
routes
Formal Bus Services and
IPT modes compete
amongst themselves
Issues

23. 2. Vehicles- Overcrowding
Tata Magic
Official seating capacity of 7 passengers
In actual practice, upto 14 passengers are carried
at a time to make the operations viable
Issues

24. Overcrowded Vehicles

25. 3. Fares
Minibus fares are regulated by the Transport Department at the
State level.
The actual fares charged depends on each individual conductor
In most cases, fare charged< prescribed fares
Issues

26. 4. Non Adherence to Schedules
Minibus
RTO doesn’t prescribes schedules
No route managers, therefore bunching, unreliable
operations
Tata Magic
RTO doesn’t prescribes schedules
Route Managers (appointed by the operators) manage
dispatch of vehicles at specific points,
Issues

27. 5. Infrastructure
No designated stops for either Tata Magic or minibuses
No depots, parking spaces
No designated maintenance, washing and repair facilities
Issues

28. Infrastructure
No designated mini bus stop

29. Regulation and Enforcement
Parameters Regulation Enforcement
Routes/Permits O x
Vehicles O x
Fares O x
Schedule X x
Infrastructure X x
Quality of Service X x
X denotes absence of regulation/ enforcement

30. Hidden Beneficiaries
Beneficiary Description
Middlemen/agents They benefit from the complex regulatory processes in
place, and partake in rent seeking activities to help
applicants circumvent this system
RTO It has been reported from surveys that some officials
within the RTO partake in the rent seeking process, in
collusion with the middlemen/agents
Traffic Police They are benefitting from the system by allowing illegal
operations to continue in exchange for monetary
compensation. Specifically, it was observed that Tata
Magic vehicles with rural permits operate illegally within
city limits, through the payment of bribes to Traffic Police

31. 1. Lack of Integrated System
Tata Magic, minibuses and formal buses compete with
each other
Do not operate in integrated/complementary manner
Key Challenges-IPT

32. 2. Poor Quality of Service
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
Key Challenges-IPT

33. 3. Challenges faced by Operators
Long working hours (typically 12-14 hours per day) and generate low net earnings.
Majority of the minibus drivers (55%) earn in the range of Rs. 10,000 – 15,000 per
month, while 45% are reported to earn Rs. 5,000 – 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
Key Challenges-IPT

34. Remedial Measures

35. 1. Increase compliance, stop encroachment, under cutting (public
notices, spot checks)
1. Overloading
2. Operating outside route limits
3. Old vehicles
2. Develop roadmap to move to BS IV compliance by 2017
(National Green Tribunal Order)
3. Create public information & data about routes, buses, stops for
intermediate public transport
Incremental Actions

36. Increase Compliance
Public notices, Spot checks for overloading,
low fare charging & old vehicles
Enforcement by Police
Technologies can be used – speed
governors, GPS based monitoring (Will have
similar costs)
Impounding of vehicles

37. This has been demonstrated again in Nairobi with the ‘Digital
Matatu’
Matatu route-mapping exercise conducted jointly by Columbia
University and University of Nairobi
As of today, 120 routes have been mapped and geocoded and
available for free use
The map has been adopted by the government of Nairobi and has
been made the official ‘Nairobi Matatu Map’
The map is also used and referred to by Matatu drivers and the
general public
This publicly available transit data, has proved to be a valuable
resource for the government as typically there is very little data
available for public transport planning in Nairobi.
Global Case Study-Nairobi, Kenya

38. Create public information – Digital Matatus
Initiative (Nairobi)

39. Public notices specifying timeline of April1, 2017 to
upgrade to BS IV norms
No new permits shall be issued to vehicles that do not
comply with BS IV norms after April 2017
Government can create a fund – for route associations,
operators to access to finance new vehicles
Government can tie up with financial institutions like
banks to provide loans and act as guarantors
Roadmap to BSIV

40. Comprehensive Approach
Comprehensive
Approach
Develop City Wide
Reform Plan
Create Unifying
Authority
Create Options for
IPT operators and
Route Associations

41. 1.City wide Reform Plan
Develop a detailed public transport demand study for
the city
Classify corridors and routes for
Big bus operations- Trunk Routes (Grade A Routes)
Mini/midi buses- Lower Demand Ods (Grade B
Routes)
Tata Magics – Realigned as Feeders (Grade C
Routes)
Preliminary estimates suggest 30-40% demand will be
for big buses, 30-50% demand will be for midi and mini
buses and 10-20% demand will be for TATA Magics

42. 2. Create Unifying Authority
Four Options:
1. Regional Transport Authority (RTA) takes the mandate of unifying
transport authority for public transport planning, regulation and
management
2. Transit Agency is given the mandate to plan, coordinate and
manage all public transport services in the city
3. Existing Unified Metropolitan Transport Authority (UMTA) created as
part of the JnNURM program plays the role of integrated planning,
regulation and management of public transport services
4. UMTA with enhanced power under the Road Transport and Safety
Bill 2014

43. 3. Create Options for IPT operators & Route Associations
1. Transit Agency contracts private operators to operate
big buses on major arterials on grade A routes
2. Tata Magic Operators & Route Association Members -
1. Realigned as feeders
2. Come together and form companies to operate big buses,
alternatively upgrade to mini/midibuses
3. Exit the system
3. Mini bus operators to upgrade to midi buses,
1. Operate complementary to big buses on low demand ODs, or
2. Come together and form companies to operate big buses
3. Exit the system

44. Main Commitments Required
Repurposing the TATA Magics
Commitment to moving to BSIV by 2017
Managed Subsidies
Land for depots and terminals
Negotiating with private operators, route associations
Capacity building for private operators

45. ITS in Informal Transport
ITS
FARES
VEHICLES
INFRASTRU
CTURE
QUALITY
OF
SERVICE
SCHEDULE
S
ROUTES

46. ITS in Informal Transport
GPS
Missed
Stops
Missing trips
Scheduling
Passenger
Information
System
Route
Deviation

47. ITS in Informal Transport
CCTV
Women’s
safety
Crew
Operating
Hours
Overloading

48. ITS in Informal Transport
ETM
Fare
Leakage
Passenger
Travel Data
Route
Rationaliz
ation
Scheduling

49. EMERGING TRENDS

50. Ride-sourcing Platforms
are disrupting informal markets.
Car / Taxi Auto Rickshaw
Indian company
Though mired in regulatory issues, P2P models are
well developed in India. Ola Cabs bought
TaxiForSure for $200 million in a cash and stock
deal— the second-ďiggest ever iŶ IŶdia’s fledgliŶg
startup world in 2014.
Auto Rickshaw aggregation is still
in early stages in India but is
gaining scale via growing startups
and inclusion of rickshaws on the
Ola and Uber platforms.
P2P B2C Auto rickshaw Booking (P2P)
Taxi Booking Taxi Rental Car Rental
NEW TRENDS IN IPT

51. Trend 3: Commuter Experience
is driving new businesses.
Driver Training Transit Apps Easy Payments
Driving Schools Trip Planning &
Schedules
Aggregator of
Aggregators
Traffic
Indian company
Driving Programmes
Automotive companies like Maruti, Toyota etc.
have their own driving schools. In PPP models
with the government, these offer most of the
driver training in the country.
Transit Apps are growing at an phenomenal pace
globally and in India. With open data, smartphone
penetration, and technological advancement, this
area will see a lot of activity.
IPT providers like Ola
Cabs, Uber are at the
forefront with offering
commuters to pay
through mobile wallets.
Banks are also joining
hands with PPP projects
to provide payment
cards, which can also
function as debit cards.
However, no startups have
emerged in this area to
really facilitate seamless
payments.
Benefit to Consumers

52. IPT is integral to satisfy mobility needs of the people
There is a need to formalize the informal system
The strategy comprises of:
Incremental Actions
Comprehensive Approach
ITS can go a long way in streamlining IPT
Conclusion

53. Thank you!