Report Final1

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Intelligent Transport Management System for SETC/TNSTC

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Intelligent Transport Management System for SETC/TNSTC Page 1

Executive summary 02

Introduction 03

About SETC/TNSTC 03

Physical performance overview 06

Project overview 09

Stake holder analysis 11

Component wise analysis 14

GPS vehicle tracking system 19

General Benefits & Features 20

Financial analysis 26

Cumulative Cost reduction from fuel savings 27

Emergency response system (ERS) 30

Passenger information system (PIS) 34

Financial analysis of PIS system 40

Electronic Ticketing machine & Smart Card Solutions 46

Sm Smart Card Facility 50

Cost Benefit Analysis 51

Logistics and parcel service management 57

Business case analysis 58

SWOT analysis 63

Social impacts 65

Success story 67

Overall project cost benefit analysis 73

Overall summary 74

Conclusions 75




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

GPS based VTMS system

Passenger Information System

Electronic Ticketing & Real-time ticket sales information

Emergency Response System (ERS)

Real Time Ticket Information and Mobile Reservation facility

Logistics and Parcel Service integration

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.




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 SRTU’s are facing serious challenges in meeting both the ends.

Out of 34 reporting SRTU’s 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 SRTU’s 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 can’t 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 GPSBASED 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




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 India’s

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 Limited’s large objective is to

adopt efficient in its day-to-day activities and bring the best to long distance passenger’s 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.




Physical Performance Overview

NUMBER OF BUSES BY STU

TOTAL FLEET STRENGTH 21,169TOTAL SERVICES 19,167SPARE BUSES 2002




Fleet Utilization and Kilometer Efficiency

Occupancy Ratio

94.39%

99.07%

104.04%

94.51%

99.20%

104.39%

88.00%

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

102.00%

104.00%

106.00%

Fleet Utilization Kilometre Efficiency(excludingspecials)

Kilometre Efficiency(includingspecials)

2010-11

2011-12

77.50%

100.15%

87.84%

102.13%

89.87%

68.81%

106.18%

93.79%102.25%

89.69%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

City & Town Mofussil Express Ghat Overall

2010-2011

2011-2012




Fuel Performance (Kmpl)

Total Kilometer Operated

5.07

5.47

5.03

4.15

5.255.05

5.37

5.03

4.16

5.2

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

5.5

6

City & Town Mofussil Express Ghat Average

2010-2011

2011-2012

87.59 89.1

208.36 210

0

50

100

150

200

250

2010-2011 2011-2012

Total Kilometres operated per day(in lakh Kms)

Total Passengers carried per day(in Lakh)




Project Overview

The project is designed to provide total management solutions for TNSTC/SETC’s 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




To manage the entire transport buses and their timing schedules, Arrival and departures in each

bus terminals and depots.

Free pass and prepaid card facility for season tickets

To issue smart cards for AC/Volvo Buses

Report generation and statistics solution for generating daily reports.




Stake Holder Analysis

Different Aspect of the project

TNSETC/SETC

PASSENGERS

OPERATIONALMANAGERS

EMPLOYEES

ADVERTISERS&

OTHERS

TNSCTC/SETC

OperationalEfficiency

RevenueGeneration

Public

Social Impact,Safety

Comfort

Employees

EfficiencyIncrease

Reduced workload




STAKE HOLDERS KEY BENIFITS IMPACT

Passengers

Real time information availability of bus status

through SMS, Internet and LCD displays

Flexibility in travel planning & ticket booking

Real time route, schedule, stop and travel time

information

Reduction in travel time, and

waiting time

Enhance the reliability of

transport service and will

encourage more people to use

the service

Increase in passenger

satisfaction and passenger

revenue

OperationalManagers

Facilitate managers to manage the entire

fleet operations efficiently through on-line

remote access to vehicle positions, speed,

breakdown, accident/ incident, and two way

communication to in Vehicle Crew etc in

real time

Provide real time reports and charts to

support operational decision-making that

include missed trips, late trips on different

routes, break downs and its duration,

vehicles offline, accidents etc

Get a real time view of the bus and driver

performance though route-wise stop times

for different trips at bus stops, average

speed point to point, travel time analysis,

improper stops at bus stops, driver

behavior, deviation in routes, speed

violations at different locations and at

different points of time

Effective Crew/Fleet Planning,

Tracking & Monitoring

Increase in productivity

Adherence to planned

Schedules

Effective management of

Incidents Real-time punctuality

monitoring of bus arrivals and

departures –thereby reliability

of services

Increase in employee

efficiency

Big reduction in operating and

fuel expenses




Employees

Reduce the work load and complexity

Real time information support for day to

day decision making

Emergency /incident management through

driver and control room communication

Effective diversification of

work force to achieve more

efficiency and revenue

Improved employee

satisfaction levels

Reduce resource cost

Advertisers

&

Others

SMS,LCD and online interfaces can be

used for advertisement of third party

business

History data and information on various

incidents and accidents to process

insurance claims

on buses / passengers.

Analytical data for the top management to

support effective management towards

meeting their commitments in providing

services

Management Information System reports

helps to understand the total organization

performance by daily, monthly, quarterly,

half-yearly and yearly

Generates extra revenue

for the organization

Improves and accelerates

the process of

bus/passenger insurance

claims

Delivers organizational

insights

The system will facilitate

highly dynamic decision

support system across the

organization




Component Wise Analysis

GPS based VTMS & Passenger Information System

The technology is a combination of GPS, GPRS, GIS and Web. A chip in the GPS Device

Continuously computes the Latitude and Longitude position. The Device transmits the Position data via

GSM/GPRS to the datacenter (DC).In the datacenter (DC), the data is processed by the VTMS

application and Map Servers display the position accurately on a map. The same application will display

the data at the Operations Control Room (OCR) of TNSTC/SETC and provide users with control to

manage the entire fleet. The major components are the following

Vehicle Tracking System

Passenger Information Management System

Data Centre & Control Room

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.




Basic Idea behind the GPS System

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 one’s 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 vehicle’s 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




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

Application of Remote Sensing, GIS and GPS

The emergence of Remote Sensing and Geographic Information System as a powerful tool for

spatial analysis and storage has in effect alleviated the problem by computerization of the spatial data.

This new technology can reduce the time and cost in organizing the data in arriving at precise conclusion

and decisions for planners and decision makers. Remote Sensing play an increasingly important role as

source of reliable and timely information needed for the sustainable management of natural resources

and for environmental protection. Through Geographic Information System, Remote Sensing data can be

integrated with ancillary data to facilitate the efforts of resource managers, decision makers and planners

in obtaining the timely and relevant observation they need for rapid decision making.




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-to-

date “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




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 can Handle or manage huge amount of data

GIS helps to visualize the data and analyze trends in a spatial context.

It helps to get the geographic details of the location

GIS helps in integration of Spatial and non spatial data

Details can be stored in single database with its location details

GIS helps in getting updated information

Users can view the details and its attributes in a single click

It reduces the human errors

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.




GPS Vehicle Tracking System

ETM Machine

GPSDEVICE

REALTIMEINFORMATION




General Benefits & Features

Improved vehicle routing

Vehicle routing management can be monitored on a real time basis both centrally and locally.

This gives a real time view of all buses under each depots so that timely actions can be taken based

upon the real time requirement.

Decrease Idle Time

Tracking the fleets in real time helps eliminate unauthorized idle time. Comparing daily route

reports will give the detailed information about the idle time details of each and every fleet. Based on

these reports fleet managers can take necessary steps to avoid these idle time and this will

immediately increase productivity and generates more revenue per trip. Drivers spending too much

time at one location, when engaged in personal activities or being in locations that are outside the

boundaries of the suggested route, that driver supposed to cover, can be tracked and proven. This will

be very effective in long route services and express services.

Proper Utilization of Vehicles

Monitoring vehicle usage will help an organization best deploy those resources and right-size

their fleets. Using GPS based tracking system we can get the current status of the bus whether its

been on trip, Idle in the garage or on the repairing stages. This will help TNSTC to move fleets to

different locations based on timely requirement. This increases the fleet utility, revenue and service

delivery to the passengers

Reduce Fuel Costs by Monitoring Speed

Tracking vehicle location and activity can provide a complete record of your vehicles usage 24

hours a day. Proper adherence to the route and speed limit can reduce the fuel usage. The real time

information about the fuel levels in fleet will help to understand the fuel efficiency of the fleet and also

avoid fuel theft at any point of time. Given the size of TNSTC a small amount o saving in fuel per bus

will bring a huge fuel cost reduction for the entire organization. This will help in saving the fuel and

increasing the efficiency, since the speed of the vehicle is monitored all the drivers will be given

instructions to drive with an average speed of 60-70, if any violation occurs that will be monitored

through the GPS receivers.

Lower Maintenance

Vehicles that consistently exceed max speed limit use more fuel, experience increased tire

wear, and require more frequent maintenance. GPS lets you monitor your vehicles' speed thus

enforcing safer operations and also reduce the likelihood of accidents. The performance data from the

system can be used to analyze the fleet productivity based on revenue, maintenance cost and age of




fleet. This will help to dispose the loss making buses and acquire new fleets by avoiding unnecessary

maintenance costs.


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.




Live Location Maps

The GIS system provides a real time map view of the entire fleet and its operations. This helps

the operation manages to get the special underrating of the total fleet distribution at any given point of

time. This will be very useful in any incident management. The special view and geographical

Real time datacapture

Real time transaction




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.




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.




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.




Cumulative Cost Reduction from Fuel Savings

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.

0

20

40

60

80

100

120

140

BREAK EVEN ANALYSIS FOR FUEL SAVINGS

Cum.Savings in Cr (1 ltr/Bus)

Cum. Savings in Cr (1.5 ltr/Bus)


Cum.Savings in Cr (2.5 ltr/Bus)


Project Cost in (Cr)




Project Break Even Points

Month

Cum. Savings

in Cr (1 ltr/Bus)

Cum. Savings

in Cr (1.5ltr/Bus)

Cum. Savings

in Cr (2 ltr/Bus)

Cum. Savings

in Cr (2.5ltr/Bus)

Cum. Savings

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




Other Project Outcomes Evaluation

Outcomes Evaluation Process

Increase in passenger occupancy in buses as a

result of access to on-line information through

display systems, Improved transport management.

Obtain data on Occupancy Ratio from the

centralized data centre

Increase in Commuter/Passenger Satisfaction

level.

Conducting surveys with different segment of

population

Real-time punctuality monitoring of bus arrivals

and departures.

Monitoring Reports generated at data center.

Effective Fleet Management and deployment of

Buses.

Monitoring Reports generated at data center.

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 information’s 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.




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

Emergency Response System (ERS)

Dynamic response to emergencies requires real time information from transportation agencies,

public safety agencies and hospitals as well as the many essential operational components. In an

Emergency, reduction of the duration of response time can yield substantial benefits. The response time

plays a crucial role in minimizing the adverse impacts. Fatalities and loss of property can be greatly

reduced by reducing the response time for emergencies. 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 centers’ 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 proposed 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 datacenter all the

instructions will be given to the nearest police station and medical centers for giving the first aid since the

location of the vehicle can be precisely calculated using GPS mounted on the vehicle.

In spite of the reason that the service providers are well equipped, routing problems and traffic

congestions breaks their speedy recovery action in real time. Emergency Response System is as GPS

enables accidental Emergency Response System for TNSTC buses utilizes motion detection and

advanced pattern recognition to determine if an accident has occurred. This system fetches data from the

GPS system to understand the occurrence of an accident and based on the GPS output our program

automatically connects to the call center and populates the 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.

Optimum utilization of the time after an accident which is golden hour serves as a measure of

effectiveness of any emergency response service provider system. Recovery actions should be taken in

time to reduce the loss of life and property. In spite of the reason that the service providers are well

equipped, routing problems and traffic congestions breaks their speedy recovery action in real time.

Emergency Response System is as GPS enables accidental Emergency Response System for TNSTC

buses utilizes motion detection and advanced pattern recognition to determine if an accident has

occurred. This system fetches data from the GPS system to understand the occurrence of an accident

and based on the GPS output our program automatically connects to the call center and populates the




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




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.

Number of Bus Accidents

Number of Accidents in 2010-2011




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 STU’s image as a

service provider.

Key Impacts of Intelligent Transport Management System











service provider.












service provider.






Passenger Information system provides passengers real time information about the bus

schedule, stops, expected travel time, delays in bus arrival and route information through SMS, LCD

displays at bus stops and internet. This improves the reliability of services and also improves the

passenger occupancy rate in bus.

The Passenger Information System mainly comprises of LCD/LED display of suitable size at

Bus Depot/Bus Stations/Terminal, stop information displays inside the bus, PIS server at Data Centre

(DC), Ad Server and application server. Generally a 42” LCD/LED display monitors will be used in all

bus depot/terminals. The display will show Bus Arrival/Departure schedules, Expected Time of

Arrival/Departure and other information as required by TNSTC/SETC. The PIS system will replace the

static bus information displays and will provide real time bus information to the passengers.

Displays at Bus Station




Display inside the Bus












Main Features and Benefits

Real-Time Bus Departures

Passengers can locate their bus in real time. Passengers can get the real time information

regarding the bus arrival, next available buses, bus information in a specific route through the PIS

system. The LCD Display unit installed in all bus terminals will display the details of Arrival and Departure

information of the buses in Tamil and English. The information of the buses Such as Route Number, Bus

Number, Terminal, Platform, Bay, Origin, Destination and Estimated Time of Arrival (ETA) & Estimated

Time of Departure (ETD) will also be displayed in both Tamil and English. The PIS also can be accessed

using a desktop computer or smart phone to get information

Real-Time SMS

Passengers can send text message to get bus information from a specific location .The system

will automatically return the departure times of the next few buses leaving that stop. This will help the

passengers to get their bus information on the go.

Configurable Alerts and Notifications

Passengers who sign up for a rider information account on the website will receive automatic

alerts for the specific routes and stops they wish, when they want them. Alerts are sent out via SMS text

message or email.

Instant Map Updates

The real-time GPS information supplied by the buses as they run their routes, passengers can

see the immediate location of vehicles as they move on a map of your service area, and find out the times

of the next buses passing through their stop.

Trip Planning

Using the PIS interfaces passengers can enter a starting and ending location and can get the trip

options and route map. This service will be extremely helpful not only for the regional passengers but also

for the passengers from outside Tamilnadu travels in the bus. Using these passenger information

systems it will easy for the each and every passenger to understand their route and bus information

without any help.




Inside the Bus display

Inside the bus displays help the passengers to get the stop information through audio

announcements and inside bus displays. This will help the passengers understand the next stop

information without asking anybody. This will be helpful for the passengers who are not familiar with the

location and people from outside the state. The multilingual display and announcement makes all the

passengers to understand the current stop and next stop information. This will make passengers more

comfortable and also improve TNSTC image.

Online Updates available on Internet

All the detailed information’s like List of bus stops in city and urban areas, Number. of schedules,

Vehicle positions of city services, Route maps of Buses, Bus timetable, Details of city and sub urban

routes Passenger Information regarding arrival times at bus stops are available in internet.




Passenger information system Benefits

When is thebus

coming???

Whenshould Ireach the

bus stop totake mybus??

Is the nextstop my

destination?




Real time Information on Fleets

Is any of thebus over-speeding?Has therebeen anyaccident?

Are all thebuses

operating asper schedule?Are there anybreakdowns?

Have any ofthe buses

missed anyscheduled

stop?

Where arethe buses??




Financial Analysis of PIS System

At one hand the real time Passenger information system provides enormous amount of benefits

and flexibility to the passengers it also provides a series of revenue generation possibilities for the

organization. With efficient use of these prospects TNSTC can generate additional revenue. The major

part of these revenue will be generated through advertising on different PIS interfaces and rest of the

revenue will be generated with proper marketing and subscription services.

Advertisement On LCD Display Boards

Year Capacity

Utlisation(%)

Revenue/LCD/Client Number of

clients/LCD

Total Revenue in

(Cr)

Year 1 40% 20,000 6 28.8

Year 2 60% 20,000 6 43.2

Year 3 80% 20,000 8 76.8

Year 4 100% 20,000 8 96.0




Advertisement Revenue from LCD Display

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

28.8

43.2

76.8

96

Year 1 Year 2 Year 3 Year 4

Total Revenue in (Cr)




The number of potential ad segments between each stop

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

Utilisation (%)

Revenue/Bus/Month Expected

Number of

Buses

Total Revenue

in (Cr)

Year1 20% 5000 4000 24.0

Year2 25% 5000 5000 30.0

Year3 30% 5000 6000 36.0

Year4 40% 5000 8000 48.0




Revenue from Inside the Bus Advertisement

Revenue from PIS SMS Service

PIS related SMS has two sections first is real time bus status information provided in response to

the SMS request and the second part is Subscription based service which will provide frequent update

messages about a particular service ,route or a bus. The revenue generation will be done by charging a

nominal cost per SMS and a fixed amount for subscription. This will expected generate a good amount of

revenue because of the service utility and the mobile penetration Tamilnadu have. Tamil Nadu is the

second largest state in terms of mobile subscription after Maharashtra. Tamilnadu have more than 4 crore

mobile subscribers with 3.03 crore mobile subscribers from Tamilnadu circle and 96.51 lakh subscribers

from Chennai circle. So if 25% of the people use these services with an average use of 10-12 rupees per

month this generates 10 -12 crore of additional revenue.

Apart from all these revenue sources there future possibilities for running commercial campaigns

and SMS advertisements through the third party tie up. One line advertisement in the PIS portal also can

generate additional revenue for TNSTC.SO given all these possibilities there is huge consolidated

revenue generation possibilities exists for TNSTC to explore and utilize with proper planning and efficient

marketing efforts.

24

30

36

48

Year 1 Year 2 Year 3 Year 4





Consolidated advertisement revenue

Year Revenue From LCD

Display in (Cr)

Revenue From Bus

Advertisement in

(Cr)

Revenue from

SMS in (Cr)

Total Revenue

in (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

62.8

85.2

126.8

160

Year1 Year2 Year3 Year4





Benefits over View

COMPONENTS OUTCOME

Vehicle Tracking System Real time tracking and management of vehicle

Real time Fleet performance assessment based on different

parameters

Passenger Information

Management System

Increases the reliability of service,

Reduce waiting anxiety of commuters

Attract more commuters towards bus travel

Data Centre & Control

Room

Centralized management of total transport system

High efficiency and Flexibility in organizational planning and operational

efficiency

Passengers Crew

Real Time Info

Convenience

Comfort

Satisfaction

Planning

Convenience

Guidance

Confidence

Satisfaction

Productivity

Convenience

Guidance

Confidence

Satisfaction

Produ

Real Time Info

Better Fleet Mgmt

Improved Productivity

Customer Satisfaction

Improved Revenue

Better planning

CustomerSatisfaction

Improved

Image




Benefits over View

COMPONENTS OUTCOME



parameters


Management System





Room



efficiency

StakeHolders

Crew Operation

Real Time Info

Convenience

Comfort

Satisfaction

Planning

Convenience

Guidance

Confidence

Satisfaction

Productivity

Convenience

Guidance

Confidence

Satisfaction

Produ

Real Time Info

Better Fleet Mgmt



Improved Revenue

Better planning


Improved

Image




Benefits over View

COMPONENTS OUTCOME



parameters


Management System





Room



efficiency

Operation TNSTC

Real Time Info

Convenience

Comfort

Satisfaction

Planning

Convenience

Guidance

Confidence

Satisfaction

Productivity

Convenience

Guidance

Confidence

Satisfaction

Produ

Real Time Info

Better Fleet Mgmt



Improved Revenue

Better planning


Improved

Image




Electronic Ticketing machine & Smart Card Solutions

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. ETM will helps in

getting real-time information about the ticket sales and passengers inside the bus. This will help in

identifying the vacant seats in buses their by reservation can be available at any time to anywhere even

after the departures of the buses. The popularity of ETS is increasing because of many advantages that

those systems provide to bus operators. Among those advantages, we can highlight the replacing of

physical means by information management that, besides speeding up the procedures, allows a better

control of the operation, with less effort, consequently resulting in a lower operational cost. The speed in

knowing the financial status of a bus route operation is one of the immediate results of the information

management in the automated fare collection procedure.

Components

Electronic Ticketing Machine (ETM)

Smart Card for all TNSTC & SETC

Back-end Solution for online ticketing monitoring

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.




General Benefits

MANEMENT OPERATIONS PASSENGERS

Creation of seamless

journeys in SETC

networks

Unification of ticketing

Source of new marketing

data

Better control of

revenues & subsidies

Extend the scheme to

other players

Improve SETC image

Reduce cost of selling

tickets

Gain new customers with modern

approach

Increase medium term operating

profit and reduce fraud

Reduce the use of cash

Reduce cost of selling tickets

Reduce maintenance costs

Improving cash flow

Increase speed at boarding

(buses)

Valuable opportunities to add

“new services”

Source of marketing data for

SETC management

Convenience & speed, no

cash

Seamless journeys in

multimodal, multi PT

schemes

Easier ways to reload value

or renew passes

New card when it has been

lost or stolen

Additional appreciated

services when available




Operational Benefits

OPERATIONAL LEVEL Cost Advantage Additional cost

Cards/e-Tickets

Ticket Validation & checking

Sales

Control

Various types of tickets on the same card

Value-stored card

disposable contactless single ticket

Multiplication cards and/or e-purse

shared cost

Possibility to implement pricing based on

operational cost (distance-based) or

marketing approach

No mechanical parts

maintenance

Shorter transaction time (0.2 to 0.5 s

reduction estimated)

faster boarding, reduced idle time at

stops

optimized operation improved crowd

management stations

Card Issuing cost

Ticket printing cost

Printing of receipts and single tickets

Portable control equipment needed

to read smartcards




Customer information &

marketing

Back office & Clearing

Standardization & Interoperability

Automation of sales

Less staff effort needed

Reduced fraud and ticket revenue

leakage due to compulsory validation

Improved loyalty and customer

relationship management

Information system shared by all

operators

Exploitation of customer data Improved

reliability of data and transparent clearing

mechanisms

Makes use of public transport easy

because of improved integration Open

standards cost less than proprietary

solutions

Provision of readers to allow

passengers to check their

smartcards

Necessity to build and maintain a

network of information amongst

operators and with the

Authority/Clearing house On-board

equipment for exchange of data

between buses and central system

Costly and labor intensive process

at development stage




Conceptual Map of the System Operation

Smart Card Facility

The areas smart cards integration is planned is AC Volvo buses and travel pass issuing. This will

be very use full for the frequent travels, students and other pass holders. Apart from the convenience for

a small section of AC Volvo travelers the major impact will be social. Because Tamilnadu transport

cooperation has taken very generous steps in providing free pass and travel concessions for different

sections of the society. TNSTC has already issued around 5.88 lakhs of concession passes to a broad

section of peoples like Members of Parliament, Members of Legislature, Ex-Members of Parliament,

Legislative Assembly and Council, Accredited Journalists, Freedom Fighters drawing Central/State

Pension, Widows and Legal-heirs of Freedom Fighters drawing Central Pension/ State Pension, Cancer

Patients, Differently abled (Deaf, Blind, Mentally Retarded and Epileptic patients), Drama Artists and

H.I.V. / AIDS patients. All the State Transport Undertakings have issued 29.55 lakh Travel Concession




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

Expected ticketing growth

Growth of online booking

Mobile phone booking

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

20.53

35.1338.22 38.99 39.7698 40.565196

R² = 0.9892

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

E-Tickets Growth in Lakhs




Total Ticket Growth

Total Revenue from Ticket Growth

750.10756.00

763.56771.20

778.91

786.70

757.60763.56

771.20778.91

786.70

794.56

2010 2011 2012 2013 2014 2015

Ticket GrowthTickets Issues Per year (Cr) Expected Increse in Tickets (Cr)

4,545.584,581.36

4,627.174,673.45

4,720.18

4,767.38

4,591.044,627.17

4,673.454,720.18

4,767.38

4,815.06

2010 2011 2012 2013 2014 2015

Total Revenue From Tickets in (Cr)Expected revenue Before E-tiketting Expected revenue After E-tiketting




Additional Revenue from Ticket growth

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.

45.46

45.81

46.27

46.73

47.20

47.67

2010 2011 2012 2013 2014 2015

Additional Revenue in (Cr)




Revenue from Print Ticket Advertisement

Year 2010 2011 2012 2013 2014 2015

Tickets printed per year (Cr) 750.10 756.00 763.56 771.20 778.91 786.70

Capacity Utilization % 30% 35% 40% 45% 50% 55%

Projected Revenue (Cr) 22.50 26.46 30.54 34.70 38.95 43.27

22.50

26.46

30.54

34.70

38.95

43.27

2010.00 2011.00 2012.00 2013.00 2014.00 2015.00

Projected Revenue in (Cr)




Consolidated Revenue Generation from E-ticketing System

Future Opportunities for E-Ticket

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

67.9672.27

76.8181.44

86.1590.94

2010 2011 2012 2013 2014 2015





Network monitoring and planning

Data collected from ticketing will improve knowledge on boarding’s and therefore allow for bus

capacity and timetables to be adapted to the actual use of the route. This also helps to understand

performance of various roots, bus and trip based on the ticket data generated from smart card and ticket

machine. All these information can be used for better planning of roots and passenger load management.

Summary

The E-ticketing system will deliver greater operational efficiency

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

The estimated implementation cost of the entire system is expected to be 40 core

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




Logistics and Parcel Service Management

This part of the implementation is intended to generate additional revenue to TNSTC/SETC by

leveraging the existing resources and infrastructure of the organization. The project infrastructure coupled

with states transport network and recourses provide the basic infrastructure needed for a Logistics and

Parcel services. This service offers a faster, reliable and cost efficient way of goods and parcel movement

for individuals and organizations. Through VTMS and Back end IT solutions the senders can track their

parcels and packages in real-time and also receive delivery acknowledgments through their mobile phone

and internet. The parcel management software also helps to identify the optimum root of the parcel

destination to be taken and manages parcels based this analysis. This helps to reduce the travel time of

the parcel and fastens the final delivery.

Rationale for Logistics and Parcel Service integration

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

The attractive growth prospects of the courier parcel industry in India

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




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 player’s 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)

3. Expected number of parcels (From primary research done in Ahmadabad)

4. 5% growth rate is used for parcel growth forecast (Courier Industry growth rate @ 5% per year)




5. A basic fare of 15 rupees is used as a per parcel charge

6. For MTC the full capacity utilization has been assumed

7. A targeted load of 30 packets per day per bus has been used for revenue estimation

8. For all other STC’s only 50% fleet capacity utilization has been assumed for analysis

Population Growth

Total Fleet

4,681,087 4,717,599 4,754,397 4,791,481 4,828,855

2011 2012 2013 2014 2015

POPULATION GROWTH PROJECTION

3414

3573

3740

3914

4096

2011 2012 2013 2014 2015

FLEET GROWTH PROJECTION




Packets Growth per Day

Packets Growth per Year

100,000105,000

110,250115,763

121,551

2011 2012 2013 2014 2015

PACKETS/DAY GROWTH

36,500,00038,325,000 40,241,250

42,253,31344,365,978

2011 2012 2013 2014 2015

PACKET /YEAR GROWTH




Revenue

Total Courier Revenue

9131,031

1,163

1,312

1,481

9681,088

1,223

1,376

1,548

2011 2012 2013 2014 2015

REVENUE PROJECTION (Cr)

Revenue w/o Parcel service (Cr) Revenue with Parcel service (Cr)

54.7557.49

60.3663.38

66.55

2011 2012 2013 2014 2015

Revenue /year in (Cr)




Expected Courier Revenue for TNSTC

60.2363.24

66.4069.72

73.20

2011 2012 2013 2014 2015

Total expected Revenue in Cr




SWOT Analysis

STRENGTH

Largest Network coverage with zero cost

No parcel transportation cost

Real time tracking & delivery

confirmation facility through SMS and

internet

Low cost compared to all the private

players

WEAKNESS

Existing brand awareness of the private

players

New entrant in the market where major

sections are controlled by few players

Lack of Professional experience in

courier service management

Lack of service marketing expertise

OPPORTUNITY

High growth potential for Indian courier

industry

Cost effective infrastructure leasing for

private courier companies

Large untapped rural market reach

Increasing economic activities in rural

area which will improve both courier

revenue and passenger revenue

THREATS

Inefficient Customer confidence

management in the service

Delivery delays due to vehicle break

downs and accidents




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.




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,

Effective capacity improvements,

Greater commuter satisfaction

Use of public transport by people instead of using own private vehicles

Reducing Travel Uncertainty

Reliability and Punctuality

Reduction in Traffic Congestion

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




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.




SUCCESS STORY

1. Ahmedabad - An Insight into the two Months of BRT Experience

Route R.T.O. to Chandranagar (12.5 kms):

• Total 18 buses are running with total 132 round trips in a day.

• Operational Timings: Between 7:00 AM to 10:30 PM.

• Peak hours are: 8:30 AM – 11:30 AM and 5:00 PM – 8: 00 PM

• Frequency of buses is 5 minutes during peak hours and rest 10 minutes

• Total Revenue in 1 month: 25,11,888; Avg. Revenue/day: 81,029

• Total passengers: 5,36,841; Avg. pax/day: 17,317

• Avg. pax./bus/day: 962; Avg. pax./round trip/day: 131

• Last week Avg. passengers/day: 19,593 and max. was 21400 pax./day

• Average speed of buses:

Overall: 26 – 29 km/hr

During peak hours: 25 – 27 km/hr

• Total km traveled by each bus:

10 buses: each 200 km daily,

8 buses: each 214 km daily




COMPARATIVE INDICATORS FOR FIRST AND SECOND MONTH

USER FEEDBACK/SATISFACTION STUDY – JANMARG




Ratings for BRTS by Users for first two Months

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

Impact of the initiatives

Within four months of start of operations, positive impacts of the system have been visible. Increase inRidership: Ridership has increased consistently through eleventh month by 305%. Average daily

passengers have increased from 17,315 (first month) to 69,759 (eleventh month). Frequency of service is

at 2.5 and 4 minutes peak during weekdays at eleventh month, up from 5 minutes peak at first month.

Ridership has gone upto85- 90,000/day.

Improvement in travel speed: Peak hour speed- 24kmph as opposed to 16-18 kmph of Ahmedabad

Municipal Transport Service. Average speeds of mixed traffic same as BRTS on most stretches.

Dependable Service/Reliability: Over 95% of departures are on time (+/- 90 sec time). 65% of arrivals

were on time. 22% arrived before time and 13% delayed.

Increase in Revenues: As a result of increased numbers, with 23 buses operating, revenue per bus

increased from 4500 to 8700 per bus per day during the first four months. This covers the entire sum paid

to bus operator and leaves a small surplus.

Modal shift: Every month about 300 passengers are interviewed to assess the satisfaction level. During

the first month, of the total BRTS users, 57% were AMTS bus users. Now this has come down to 40%.

Major shifts are from 3-wheelers (25%), 2wheelers (20%) and Cars (10%). Shifts from bicycles are not

significant.




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

Delhi Transport Corporation

Delhi Transport Corporation is the one of the largest City Road Transport Undertaking in the India. It has

a fleet of around 15,000 vehicles carrying on the business of passenger transport on 800 routes from 33

depots all over the state of Delhi with a product mix comprising of City and Inter-city services.

CMC has Designed, Developed and Implemented the Automatic Fleet Management System that include

Vehicle Tracking System, Application software for billing, Operational Transportation Model for scheduling

of buses and integration of Smart Card Reader with the Vehicle Tracking System, provision for Real Time

Passenger Information System to Delhi Transport Corporation. The AFMS system is currently operational

from two depots for 200 buses since last two years.




System Features Delivered

GPS based Nirdeshak Unit mounted on 200 buses belonging to 2 depots

Monitoring from a Central Control Station, 2 depots simultaneously

Solaris based Database Server, AVTMS server, Communication Server

Display of vehicles at Workstation using ARC Info suite and VC++ based application software

Real Time two way messaging between buses & CCS

Public Mobile Radio Trunking System (Wireless Communication network) for Collecting data from

buses. Area of coverage is 1500 square kms

The salient features of GIS related activities in this project include

Verification and Validation of GIS data of Delhi procured from a GIS data vendor, with the

help of GPS in both standalone and differential mode. This is to ensure that the data is in

required co-ordinate system.

Field trials were conducted with buses mounted with VMUs (Vehicle Mounted Units) to

ensure the integrity of the GIS data of Delhi.

Additional custom data as required in this project like bus stops information where DTC

operates, Landmarks (both Geographical position and corresponding attributes), school

routes and corresponding turn information (lane connectivity information) etc. were

collected by conducting extensive DGPS based field survey and was geo-coded on the

GIS map of Delhi. Geographical position surveyed by National Geophysical Research

Institute, Hyderabad at DTC, I.P. Depot, is used as DGPS reference station for

conducting field surveys.

GIS data is integrated with the turntables containing turning information at various

junctions along with one way, two ways etc.

Application development and customization of screens, forms, reports and queries of GIS

data specifically includes:

Locating a particular bus in the fleet

Auto pan facility for tracking a particular bus

Sending online messages to an individual bus or group of buses

selected on a GIS map

Creating and editing No entry and No exit zones

Zone violation reports for both no entry and no exit zones




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

Generating messages pertaining to speed violation, skipping bus stops

etc., to DTC officials at the Central Control Station (CCS),online along

with the Geo-graphical position and the violated vehicle number through

trunk radio network

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.

Calculation of the actual distance (in Kilometers) traveled by the vehicle,

using the GIS map.

The implemented system is success fully running with high passenger turn out and greater efficiency in

operation.




Overall Cost Benefit Analysis

Year AdvertisementRevenue From

PIS

RevenueFrom

E-ticketing

Revenue FromCourierService

Benefitfrom FuelSavings

TotalBenefits

NetBenefits

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

NC-Not Calculated.IN project Implementation phase benefits calculation is not done

The project will return the total investment in the first year of the functioning. In Year 1 the

consolidated return of 196.45 crore revenue will be generated from different source. Other benefits of the

projects are quantified based on different performance parameters through a performance assessment

study.




Overall Summary

Parameters Benefits

Planning

Enhanced Service Quality

Increased Reliability

Improve Frequency and travel time

Data for Demand Assessment

Scenario Analysis, Traffic Routing / re routing

Assign Demand to Bus Stops

Revenues Increased Passengers and Better Revenues

Advertisements

Operational efficiency

Dynamic Re routing

Fuel Economy

Real-time Query of Assets

Monitoring Performance

Reduction in Vehicle Hours of Operations

Incident Management

Breakdowns

Accidents

End User

Lesser Complaints

Improved Mobility

Premium Image

Aids Planning of schedules

Saves Anxiety

Reduce Travel time Variability

Next stop Announcements

Non Riders - Better Information of Services and therebyModal Shift

Society

Reduction in personal Vehicle Kilometers

Better Utilization of Public transport infrastructure

Positioning as a Credible transport




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 Government’s 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.

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Plot No: CPV/774 FE




Kerala, India

Telephone: +91 (0) 494 3018650





Phone: +914713081210, +914713057936

Corporate Office



Phone: +91 496 2514042, 2516402, Fax: +91 496 2516402



Corporate Office

Plot No: CPV/774 FE




Kerala, India

Telephone: +91 (0) 494 3018650





Phone: +914713081210, +914713057936

Corporate Office



Phone: +91 496 2514042, 2516402, Fax: +91 496 2516402


Report Final1

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