Bengaluru: Demand for cargo services from Karnataka State Road Transport Transport Corporation (KSRTC) gradually increases, helping efforts to generate income which is needed after a pandemic disrupts operations in the passenger segment and causes a big loss.
“We get 1,000 to 1,100 bookings for cargo services Namma every day and they produce Rs 2.5 lakh a day.
This is a good start,” said a senior KSRTC official.
Namma’s cargo service was launched in February this year with the aim of increasing the income of the KSRTC non-tariff box.
Since March 2020, KSRTC has faced a series of challenges: suspension of transportation services for the prolonged period because of Covid-19, reduced passengers, strikes with staff and high fuel prices.
Revenue from cargo services is Rs 38 Lakh in March, RS 12 Lakh in April, Nile in May, RS 3.5 Lakh in June, RS 33 Lakh in July and 45 Lakh Rs in August.
Of the total income, 80 percent entered the KSRTC and the rest to the private facilitator.
KSRTC believes that cargo services and parcel will produce more cash.
“Even though we launched a service in February, the full business began only on July 21 after strikes and locking.
Things improved, but this would not be a substitute for passenger ticket income,” the official said.
Namma Cargo is expected to produce Rs 100 Crore a year from package and cargo services, but the estimate is then revised to Rs 70 Crore.
“Andhra Pradesh State Road Transport Corporation started a courier business in 2016-17 and now generate an average RS 70 Crore in a year.
How do we get Rs 100 Crore a year in the first year itself? It will take time,” he said.
According to other officials, there are three reservations at Majestic and each at Satellite Jalan Mysuru and Shantinagar Bus Station.
“People have to visit these stations to order and send parcels.
The recipient can collect it from the bus terminal at the destination,” he said.
There is no pickup package or home delivery.
“We will provide this facility after we get more reservations.
Our services are more reliable, cheaper and faster than private company operations.
Senders and recipients get text messages so they can track their package status.
We work hard to increase non-box revenue -Tarif us because the passenger business is drastically reduced after Covid-19, “he said.
KSRTC has been tied with NWKRTC and KKRTC for parcel service.
Collectively, three units covered 51 lakh km a day, carrying 38 lakh passengers.
CARGO SERVICES NAMMA includes 88 Taluk and Bus Stations in Karnataka and 21 Inter-Country Locations and 109 Bus Stations
Namma Cargo Services raised the expectations of KSRTC’s income
