Prasanna Purple Mobility Solutions
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- Elizabeth Stevenson
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1 To be people s chosen brand universally, in mobility solutions, by serving beyond their expectations for every journey whilst adding value to all stakeholders and society at large Complete Surface Mobility Solution Prasanna Purple Mobility Solutions
2 About Purple A complete Mobility Solutions provider company, specialized in Human Logistics In the market since 1988 Our business vertical includes City Bus, Intercity, Rentals, Holidays etc Fleet of more than buses operated on daily basis across national geography City Bus Operations in Delhi, Indore, Pune & Surat
3 Indore Purple Public Transportation
4 Delhi Purple Public Transportation
5 Surat BRT Service
6 Prasanna Purple Mobility Solutions National Award Best PPP Initiative in Urban Transport Our Bhopal City bus project of 225 buses had got the National Award for Best public transportation under the category Best PPP Initiative in Urban Transport The award was given by Honorable Union Urban Development Minister Mr. Kamal Nath in New Delhi.
7 Prasanna Purple Mobility Solutions National Award WINNER of the top 100 SME's of INDIA WINNER of the top 100 SME's of INDIA for 2014, presented by Bank Of India.
8 Prasanna Purple Mobility Solutions National Award Excellence in Bus Transport (West) Awards for Excellence in Bus transport service. West Zone of India.
9 Prasanna Purple Mobility Solutions National Award Excellence in Bus Transport (West) Awards for Excellence in Bus transport service. West Zone of India. Second time in a row National Award India's Small Giants India's Small Giants. The award was felicitated by Hon. Union Minister Shri Kalraj Mishra
10 Prasanna Purple Mobility Solutions Prasanna Purple receives 4 National Awards India Bus Award 2017 under the following categories : Excellence in Bus Transport - Private (PAN India) Excellence in Bus Transport - Private (West) (3 times consecutive in a row) Excellence in Marketing Initiative (Customer Retention) Excellence in Bus Transport - Private (Corporates) The award was honored by Deputy Chief Minister of Telangana, Md. Mohamood Ali & Minister IT, Industries & Commerce, Shri K. T. Rama Rao
11 Why PPP? Leveraging Strengths of Government and Private sector to provide better service Lack of Capital with STU or SPV Urban Local Body s do not have enough capital to invest. No investment by State Governments State Government is not willing to invest in STUs. To attract Private Capital To bring in capital and entrepreneur skills of private person / organization Which services can be Outsourced Managing fleet with crew Revenue collection,sale of tickets, passes. Development & Management of bus stops, Terminals. Marketing of value added services Various ways of generating additional revenue by Advertising 9/11/
12 Types of PPP What is it? Gross Income is collected by STU / SPV and concessioner gets paid a fixed sum on Per Km basis irrespective of income. Where is it used? STU / SPV having strong administrative and financial strengths outsource fleet procurement, operation and maintenance to increase operating efficiency GROSS BASIS NET BASIS Gross income is collected by the concessioner and City gets fixed income either on per bus / per month or operated Km basis. Ideal when there is a single concessioner in a city. Requires very effective implementation of concession agreement 9/11/
13 Gross Vs Net Contract Model : Features Factor/ Activity/ Feature Gross Contract Net Contract Most likely bidding factor for contract Revenue to operator Revenue to PTA Per km revenue to be paid by city authorities Based on per Km charge contracted in the agreement Direct ticketing on daily operations Per bus monthly fees/vgf to be paid/ received to/from PTA by/to operator Based on direct ticketing revenue on daily operations Per bus monthly/yearly fees paid by operator Employment of crew by operator Only driver Driver and conductor Responsibility of operator Entire O & M Cost Revenue Collection and Entire O & M Cost Ownership of buses PTA / operator PTA / operator Additional revenue thru advertising on buses Planning and implementation of daily bus schedules PTA / operator PTA PTA / operator PTA Infrastructure PTA PTA Safety & Quality Assurance Joint Responsibility Joint Responsibility ITMS PTA PTA PTA- Public Transport Authority
14 Slow pace of progress Gross Cost - Cities do not have enough financial resources. Net Cost - Operators are not willing to work because of high royalty expectations & inadequate support by local authorities. Not being implemented because many cities do not have expertise to run the system & resources to fund losses Not many operator are willing to come forward to take risk of revenue, as experience of getting Government support is very bad
15 Models of PPP RESULT Maximise revenues with the focus on enhancing COMMUTER COMFORT Advertising Rights Integrated Single Operator Pass Pricing and Sale PPP Models Vendor 1 Advertising Rights Fare Box Collection Fragmented Vendor 2 Pass Sale Vendor 3, 4 & 5 Operate Certain Routes 9/11/
16 Revenue model and priority INTEGRATED MODEL Possible only when one operator undertakes entire city operations. Priority is given to passenger convenience,as main focus is to carry more number of passengers to increase revenue. To attract more passengers he can leverage advertising space to be used as barter to provide discounts to pass holders in certain shops, malls, multiplexes, restaurants intercity bus operators etc. FRAGMENTED MODEL Difficult without good organisational capabilities of SPV. Priorities of different service provider is different. Revenue model of bus stop advertiser - Is to generate revenue through only advertising hence he will opt for a place of bus stop where advertising will become profitable and will not consider passenger s convenience. Prasanna Purple Mobility Solutions 9/11/
17 ABCD Trip Analysis Trip A Trips which generate revenue crossing all expenses or profit making trips. Trip B Trips which generate revenue upto all expenses like monthly contract payment (royalty) to city authorities and overheads, but excluding finance/bank EMI, or meeting breakeven costs. Trip C Trips which generate revenue above the direct/ operating cost. Trip D Trips which are loss making, or generating revenue below direct cost.
18 ABCD Trip Analysis Changing Percentage in ABCD Trips Jan Feb Mar Apr May Jun Jul Aug Sep D% C% B% A% EPKM : Before and After ABCD Trip Analysis Average EPKM Average EPKM Jan Feb Mar Apr May Jun Jul Aug Sep Before ABCD After ABCD
19 Effect Of Rescheduling On Improving Earning Per KM ( EPKM )
20 Best of Best : Bus to Run Highest Kms Route Bus No. Avg KMPL KMPL Total Run Ranking Kms Km Ranking MP MP MP MP MP MP SR2 MP MP MP MP MP MP MP SR2 Total Result Vehicle No. Fuel in Ltrs B-O-B Fuel in Ltrs MP MP MP MP MP MP MP MP MP MP MP MP MP Total Bus with best mileage does max Kms, consumes highest fuel Fuel in Ltrs B-O-B Fuel in Ltrs Result : 2720 ltrs fuel saved due to B-O-B
21 Best of Best : Driver to Run Highest Kms Driver Code Avg KMPL KMPL Rank Run Kms Kms Rank 1 CBB CBB CBB CBB CBB CBB CBB Result Driver Code Fuel in Ltrs B-O-B Fuel in Ltrs CBB CBB CBB CBB CBB CBB CBB Total Driver with best mileage does max Kms, consumes highest fuel Fuel in Ltrs B-O-B Fuel in Ltrs CBB00138 CBB00632 CBB00574 CBB01074 CBB00705 CBB00416 CBB00124 Result : 70 ltrs fuel saved due to B-O-B
22 Issues affecting success of PPP model Poor understanding of ( PPP) Partnership concept No Model concession agreement. Fare fixation and timely revision Reimbursement of Concession amounts Weak SPV responsible for poor Planning & control Poor support by local Administration, Police & RTO Lack of commitment to build necessary infrastructure. No provision of Viability Gap Funding to Private Operator. Expectation of High Royalty & Taxes (double standards Vs STUs) Prasanna Purple Mobility Solutions
23 What is required Priority sector Infrastructure status Availability of low cost long term funds for entire project Method to provide viability gap funding or fuel and tax subsidy Real estate avenues to earn additional revenue Multimodal terminals, Other associated Passenger & Depot Infrastructure. Successful Implementation of NUTP and JnNURM guidelines UMTA to be made statutory body with legislative support by CMV Act. Capacity building of SPV / STU Auto fare revision formula Adoption of ITS Education to all stake holders- Citizens, Politician, Bureaucrats & Operators To bring City bus under essential services Third party quality audit mechanism. Proof of concept - build one city as a role model. Prasanna Purple Mobility Solutions
24 Responsibility of Each Stake Holder By Government Build political consensus & will to improve Public Transport Include all stake holders in the process and educate citizens Allocate Depot land at strategic location for better and efficient service Build modern bus terminals with better passenger amenities. Effective Insurance scheme ( cash less) Scheme of Project finance for Public Transport Operators. Give Industry Status to Public Transport by road, like rail. By Operator Modernize bus depots Upgrade house keeping and maintenance systems to improve on road bus ratio and image of bus. Adopt ITS, new technology and establish centralized control rooms. Rationalize routes, plan schedule, manage frequency as per customers requirement. Bring in more staff training, incentive schemes and motivational programs. Introduce attractive passenger schemes to attract more commuters. Work towards road safety program. Improve image of Public Transport Provide end to end better experience like Metro to bus users
25 Thank You
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