Wednesday, April 09, 2008

Is Kadamba, missing the Bus?


Article Published in Navhind Times

Saturday and Sunday are business holidays for the employees of Information Technology & Information Technology Enabled Services Industry. 600 kms from Bangalore, so called Silicon Valley of India is Goa, a suitable destination for a weekend escape. There are no official data available about the number of Goans working in Bangalore, but it is assumed that there are thousands of Goans working in Bangalore. During peak seasons such as Christmas, Diwali and Ganesh Chaturthi, all possible transportation means are flooded. Private buses sub contract new buses, trains add more compartments, Flights hike prices. Then begins the uncontrolled price discrimination.

On every Friday, there is only one train to Goa that too starts from Chennai via Bangalore to Margao, a journey that takes 15-16 hours from Bangalore. With irregular train service and expensive flights the largely middle class also known these days as "Aam Aadmi" is compelled to travel by Road Transport.

Now let us look at some facts about Road Transport from Bangalore to Goa:

Transport Name

No of Buses

Average Price

Seats

Daily Revenue

Season Buses Revenue

KSRTC Non AC-RAJAHAMSA

1

350

32

11200

0

KSRTC AC VOLVO

2 (+ 1 During Season)

803

25

40150

30000

Paulo Non AC

3(+ 1 During Season)

450

32

43200

14400

Paulo AC Volvo

2(+ 1 During Season)

800

25

40000

30000

Seabird

3(+ 1 During Season)

550

32

52800

24000

Sharma

2(+ 1 During Season)

450

32

28800

19200

Raj Travels

1

800

25

20000

0


Total Buses=14 (+5 During Season)

630


236,150

117,600

Market Potential

Revenue in Rs.

Daily Revenue

353,750

Monthly Revenue

10,612,500

Yearly Revenue

127,350,000

These figures are based on assumption of a) full capacity, b) considering total revenue during season as base for yearly revenue. Figures need to be verified by respective private players.

So every day there at least 14 buses running and during season over 19 buses in this route. This route also has market potential of Rs. 10,612,500 per month in the next fiscal year..

Karnataka State Road Transport Corporation (KSRTC) during the peak season prioritizes its capacity, by adding another Volvo Bus and hikes the price to Rs.1200 per seat! To add to the competition, KSRTC has an online internet booking website and all private buses are available for online booking as well on www.redbus.in One thing that remains unchanged during this gold rush is the approach of KADAMBA TRANSPORT CORPORATION LIMITED on this route.

Forget about online booking, it doesn't even have a website. Forget about website, total buses during peak season on this route go over 19, any guesses on how many buses KADAMBA TRANSPORT CORPORATION LIMITED runs on this route…?

Shockingly one, yes one and that too is a Non AC Bus taking grueling minimum of 16 hours. Kadamba doesn't even have Volvo Bus running on this route unlike its counter part KSRTC. The KSRTC Volvo bus which leaves after an hour from Bangalore overtakes Kadamba even before getting out of Bangalore. Hopefully after reading this article someone in Ministry of Road & Transport or KADAMBA TRANSPORT CORPORATION LIMITED might realize the business potential or opportunity cost. Perhaps they might add to their demand of additional buses. But that's not the point I am trying to make.

Ministry of Road & Transport & KADAMBA TRANSPORT CORPORATION LIMITED needs to be more proactive in its planning and execution. It has to realize that majority tourists and Goans come to Goa by road and it should maximize its revenue which it loses to private and other efficient state transports such as KSRTC. All private buses and KSRTC not only bring passengers to Goa, their roof tops are laden with agriculture produce, flowers, fruits, vegetables, furniture from South East Asia, Movie CDs, and many unchecked containers.

I realize there that our State Goa is not self sufficient, but is Government getting its required share of revenue through taxes. Why there is no Government Officer periodically deployed while unloading these large cargo. If all road transports are getting creative to make more money, what is the Government of Goa waiting for? Other State Transports run into loss because there few high traffic routes, where as Goa is lucky, Ministry of Road & Transport & KADAMBA TRANSPORT CORPORATION LIMITED need to cash in.

How much money does the Home State make out of this? For which I might have to apply for RTI Application and wait for 30 days.

I might be taking a random example of one particular route. But with my travelling experience Inter & Intra State, this complacency of Ministry of Road & Transport & KADAMBA TRANSPORT CORPORATION LIMITED can be extrapolated. If KSRTC can be profitable, competitive and bring value to its commuters by offering value added services, then why can't Kadamba? They even have a travel magazine, mentioning places to explore, cross selling Tourism Products and Jungle Lodges.

Goa can be the first developed state of India by 2015. And one of the key drivers is better infrastructure and transport facilities. As we are on international circuit, we must have better roads and we can push neighboring states to improve their road conditions such as Dharwad Mollem road, so called National Highway still a mud road for over a decade. With no contractor assigned as per the NHAI website. Let's forget about pushing other states, how much time does the much concerned "Aam Admi" take to travel from Panaji-Mapusa, Panaji-Goa University, Kalem-GMC, Valpoi-GMC etc. Even in 2008, the entire rural side of Goa remains in contact with irregular bus service.

I remember how the Aam Aadmi was treated like cattle during the Zuari Bridge Repairs. He had to get down in the rain from bigger bus to smaller shuttle and then cross the bridge and board another bus. In the race to get a better seat, the women and old would always loose. The affluent, including the politicians and bureaucrats would just have to zip his car across the bridge admiring the river. (Hope this sentence doesn't inspire some builder to start an apartment for some "stressed" metro dwellers). I remember my heated debate with police stationed by Government to discipline the Aam Aadmi at Zuari Bridge with Lathis, I asked them how their conscious can allow them to sit comfortably in their police cars when their own citizens cramped into buses, requesting to at least help the old and pregnant women.

49.1% of Government employees have incomes below Rs. 7000 per month. One return bus trip for this employee will cost him 15%-20% of his monthly salary. How should this Aam Aadmi survive? Coming to the point, Are the public service providers creating a competitive scenario for better service? The role of Telecom Regulatory Authority of India in policy making and execution is remarkable. Even BSNL is doing a good job, by forcing its telecom competitors to provide better value... Why can't Goa achieve this, do we lack the intellect or the will to change?

In my visit to Rural Goa, I have met many unemployed youth. As per the Directorate of Planning, Statistics & Evaluation which conducts the Census of Government Employees there are 1849 employees in Kadamba Transport Corporation. My question is with over a million tourists, and a million locals in the state, is that all the employment we can generate? As per Directorate of Planning, Statistics & Evaluation for a population of 13.48 lakh, about 1,01,847 persons remained on live register of Employment Exchange at the end of this fiscal year.


Out of 1200 Crores spent by Government in last year, only 2.25 % was spent on "Aam Aadmi" i.e. Rural Development, where as 10.25 % was spent on Transport. In the same statistics the length of road remained 9658.35 kms in 2005-06 and 2006-07. Now I don't know where those Rs. 123.58 Crores were spent in Transport Development. To seek the answer, I might have to travel to Goa and file another RTI Application for spend allocation.

Officers of Ministry of Road & Transport & KADAMBA TRANSPORT CORPORATION LIMITED, have to really introspect, and move towards agility and adaptation to competition, opportunity costs and calculate loss of revenue by running sub standardized buses, old technology and old processes. Kadamba name belongs to an empire that remains in history of India, as an age of efficient governance and where satisfied citizens lived. It's a prestigious and visionary brand name which needs the desired sanctity. Are the present Minister, Bureaucrats, stake holders doing justice to this prestigious brand name Kadamba, if not it must be renamed to Siesta Travels? The least the Chief Minister can do is a surprise visit to the KTC Bus Stand and experience the urinal & garbage aroma that welcomes the Aam Admi every morning in his capital.

I remember one incident while travelling in Private Bus to Goa from Bangalore. The driver was compelled by the operator to delay the bus for 3 hours for 5 late passengers. The existing punctual passengers made repeated requests to proceed which turned to deaf ears. The same patient passengers became violent and took control over the bus. The mob confiscated bus driver's mobile and switched it off, and the mob told the operator that if the bus did not move the bus would be history.


Public patience is like that of a mother to a child. It is quiet, tolerant and humble, but someday the when the child, loses his moral values, brings bad name to the family, the mother holds the ear of the child and twists it till the child realizes its mistake.


Jai Hind,

Navendu Shirali

(Writer is Consultant based in Bangalore)

Preferred Correspondence: navendu.shirali@gmail.com

3 comments:

Anand said...

Navendu, i am anand, former faculty GIM. it is a wonderful piece on Kadamba. hope this awakens the authorities. If you are interested i could send you over a paper which was jointly written by some students from your junior batch and myself on comparison of KTC and pvt bus operators within goa.
all the best

Klaud said...

Yes Navedu I couldnt agree more. I am working in Bangalore and sorely miss Goa especially during the 'busy' season. Kadamba needs to wake up and make use of this business oppurtunity.

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