Efficient & Sustainable City Bus Systems

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1 Efficient & Sustainable City Bus Systems ESCBS Knowledge Exchange & Mid-Term Review Workshop Nupur Gupta, Sr. Transport Specialist The World Bank 4 September 2017

2 Presentation Structure India s Urbanization State of Urban Public Transport Concept and Objectives of ESCBS Key Takeaways

3 India is rapidly urbanising Urbanisation 26% 28% 30% 40% GDP Share 46% 54% 58% 69%

4 Population Growth by City Size mn mn 1-4 mn 5 cities 4 cities 44 cities Indian cities with a population of one million and above grew by 150 percent between 2001 and The growth was the fastest in the 1-4 mn category

5 Trends in Urban Bus Sector

6 But alternatives to personal modes are limited mn mn mn mn Public transport mode shares are declining resulting in increasing dependence on personal modes and an unsustainable demand for more road infrastructure costs, land scarcity, congestion, accidents, GHG

7 50 Business as Usual Scenario Projected Decline in PT Share Source: Study on Traffic & Transportation, MoUD, % drop predicte d <0.5 million Million 1-2 Million 2-4 Million 4-8 Million >8 Million

8 Growth in Registered Vehicles in India (million) Source: Census of India With growing income levels motorization levels are experiencing rapid growth

9 GHG emission from Transport (million tons of CO2 eq), 2007 Agriculture 18% Waste 3% Electricity 38% Agriculture / Fisheries 3% Petroleum/ Refining/ solid Fuels 3% Other Energy Industries 12% Transport 7% Source: Planning Commission, Government of India

10 But alternatives to personal modes are limited Traffic & Transportation study indicates that only 20 of 87 (0.5 mn) cities have formal public transport systems (2007) A large majority of STUs have declining fleet sizes, are loss making and have inadequate resources for service and infrastructure upgradation Proliferation of fragmented and unregulated IPT resulting in congestion City bus services a cost effective and efficient solution for most cities ensuring widest coverage

11 NUTP, JnNURM Scheme GoI s NUTP emphasizes priority to public trasnport, in particular bus transport JnNURM bus funding scheme focussed on bus fleet replenishment in existing cities and launch of bus service in new cities Overall, $1 bn, buses and 61 cities Progressive policies and schemes of GoI addressing the situation

12 Fleet Strength of STUs in Major Indian Cities DTC BEST CSTC MTCL BMTC AMTS PMPML CTU Source: CIRT Profile and Performance of STUs

13 So what ails the city bus sector Profitability, DTC BEST CSTC MTCL BMTC AMTS PMPML CTU Earnings/Bus/Day Cost/Bus/Day Most STUs continue to be loss making, with low fare revenues and high costs. BMTC is perhaps the only STU which continues to break even and has one of the lowest unit costs

14 So what ails the city bus sector 2.00 Profitability DTC BEST CSTC MTCL BMTC AMTS CTU Note that the financials of most STUs have further deteriorated owing to upward pressure on costs (fuel, manpower, spares) and stagnant fares

15 So what ails the city bus sector Depot Infrastructure 200 No. of Buses per Depot Jaipur Chandigarh Navi Mumbai Lucknow Raipur Chennai Mira Bhayandar Indore Inadequate or no depot infrastructure means poor maintenance, faster fleet depreciation, higher costs of operation and unattractive buses

16 So what ails the city bus sector Fuel Performance Declining fuel performance suggests increasing costs

17 Institutions & Systems New SPVs created as per NURM requirement but neither manpower, nor resources nor capacity Limited use of ITS - efficiency enhancing systems, user responsiveness Scientific route planning techniques not in use

18 User Satisfaction Levels for Bus Services Across 12 Cities in India Chandigarh Bangalore Raipur Bhopal Lucknow Chennai Delhi Jaipur Navi Mumbai Kochi Kolkata Mira Bhayandar Overall (12 cities) % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Satisfied Neither Satisfied nor Dissatisfied Dissatisfied

19 Reasons for using city bus services Economical 72.4 Easy availability 43.4 Time saving Good Connectivity Safety Comfort Directness of the service Only Choice Good facilities

20 Users - Alternative Mode of Transport Overall Mira Bhayandar Bhopal Raipur Lucknow Shared Autos 2W Chandigarh Other Jaipur Chennai Kolkata % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Over 39% users would use shared auto rickshaws when buses were not available

21 Reasons for non-usage of city buses (non users) Overcrowding Longer commuting time Non-availability during commuting time Non-comfort Not safe No seat availability Costlier Pick pocketing Need to change buses Bus stops far away Poor connectivity Feel insecure

22 Key Issues afflicting City Buses LOSSES INSTITUTION EFFICIENCY INFRASTRUCTURE COMPETITION This is especially true for new SPV s

23 The changing paradigm Traditionally buses were planned for those who had no other option to travel Focus was on keeping costs low and services affordable Role is now expanded in a modern bus service to serve people who have other travel options An additional focus on making services attractive, appealing, safe, convenient, comfortable Conflict of objectives Making services attractive means higher costs Serving people with no other option to travel means keeping services affordable

24 ESCBS Concept & Objectives

25 Components of Modernization Modern, attractive buses Improve social image Well equipped depots Building Equipment Comprehensive procedures Integrated computer systems (MIS) Finance/accounting Human resources Stores and Inventory Maintenance Physical performance Data collection, management Reporting system Modern control room Bus Fuel Efficiency programs Scientific route structuring Meet passenger demands Optimize use of available capacity Modern fare collection system Passenger friendly Revenue control Attractive bus stops, terminals Modern, passenger-focused marketing program Attractive signage, color scheme and logo Passenger information system Public relations and outreach Financial sustainability Some of the low cost interventions can go a long way

26 26 Modern Depots

27 27 Computerized Inventory

28 28 Modern Buses

29 29 Attractive Bus Terminals

30 30 Real-Time Passenger Information

31 Sustainable City Bus Systems Attractive Services for increased ridership User responsive passenger information systems Seamless transfers, modal integration Improved service, less crowded Efficient Services for reduced costs Management Information Systems for optimal utilisation of resources Proper maintenance facilities Bus Fuel Efficiency through driver training and maintenance Support from State/ City govt Additional financial resources UTF etc Tax exemptions and subsidy reimbursements Land resources Managing competition from unorganised sector Strong institutions with planning capacity

32 GEF Efficient & Sustainable City Bus Services Development Objective To improve the efficiency and attractiveness of city bus transport and reduce greenhouse gas emissions in the demonstration cities

33 GEF Efficient and Sustainable City Bus Services National Capacity Building Component TA on policy, regulatory and fiscal issues Capacity Building of Urban Bus Sector Demonstration Projects Bhopal, Chandigarh, Jaipur, Mira Bhayandar Management Information Systems/ ITS for optimal utilisation of resources and dynamic planning Modern depot equipment User responsive and efficient Service planning, bus fuel efficiency, marketing & branding, informal operations Showcasing Modern City Bus Systems

34 City Demo Projects Activity Bhopal Chandigarh Jaipur MB Depot Modernization Equipment X X X X Modern Management Information System (MIS) X X X Modern Fare Collection System ETM/smart card X X Intelligent Transport System (ITS) - GPS/AVLS and PIS X X ITS/ MIS Implementation X X X X Fuel Efficiency Program X X X X Comprehensive route planning study/business Plan X X X X Capacity building initiatives X X X X Marketing & branding program X X X X TA on PPP in operations and options for mainstreaming informal transit Study on institutional & funding options for CBS X X X Operating expenses X X X X

35 Key Takeaways Overall Fleets replenished and new services launched in many Tier 2 cities with no organized public transport. PT ridership improved (in existing cities) and developing (in new cities) Some reforms initiated SPVs created; urban transport funds created; urban departments designated lead; etc. Profitability remained an issue and generally worsened New and improved rolling stock resulted in improved user satisfaction; but also led to several issues around maintenance and staff training (including for well equipped STUs) Breakdown rates worsened Fuel efficiency worsened Awareness around ITS and new technologies improved for both existing and new players but few successfully implemented these complex systems Overall, the national schemes had a positive impact on the urban bus sector

36 Key Takeaways New Services In the cities launching a new service - mixed results. Cities such as Bhopal and Raipur have launched well operated services with high levels of user satisfaction Most cities launched services without adequate depot facilities the Phase 2 came too late Several cities encountered problems with hiring and management of private operators weak capacities, poor contracting arrangements, one sided risk frameworks etc. In almost all instances the new services were launched in competition with the existing informal (or unregulated) presence, seriously impacting the SPV operations Most states/ cities had not anticipated a requirement of funding to maintain operations Adequate resourcing of SPV s a major challenge The Tier 2 cities made a start with a formal public transport service, but require a significant scale up with necessary support, if sustainability is to be ensured

37 Key Takeaways Urban Bus Sector A serious national and state level deliberation is need of the hour for correcting the policy, regulatory, fiscal and financial constraints inhibiting the urban bus sector and allow it to thrive

38 Thank you

39 GEF Grant & Cofinancing Component 1: TA MoUD In USD Mn State/ City GEF TOTAL - PMC and Policy Notes Component 2: Demo Projects - Demo with 4 cities Project Management Total

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