1. Executive Management Programme
(EMP: Apr 2008)
Term: IX (5 Apr – 27 Jun, 2010)
Management Development Institute - Gurgaon
Operations Strategy
Case-02
Changing lanes of Transport
Ecosystem
IDID NameName
11 02 Achal Garg
22 14 Ashok Pershad
33 15 Dhiraj Gaur
44 18 Gaurav Grewal
55 22 Manoj Agarwal
66 51 Umesh Raheja
OS
Case Presentation
Presentation Date: 29 April 2010Presentation Date: 29 April 2010

3. TRIP
 (Mass) transit journey is too tiring
ROUTE
 Transit routes are very complicated
PLATFORM
 Transit points are not accessible

4. TRIP
 Collective movement of people
ROUTE
 Servicing common corridor with greater efficiency
PLATFORM
 Facilitated by pooled resources (stations, street
signals, dedicated lanes etc)
The single most important competitor to public transport is private transport
Taxpayers’ money has not been used to fund common infrastructure to support
public transport the way it is used to
build and maintain roads for cars.
Operators pitted against each other will take every cost
savings they can get away with in absence of any
reasonable standards, regulations and enforcement
Mass transit vehicles SHARE travel space with private vehicles
Operators maximize whatever they can squeeze from any loophole in public
infrastructure (i.e. loitering of parked buses, unruly road hogging and speeding)

5. TRIP
 (Mass) transit journey is too tiring
ROUTE
 Transit routes are very complicated
PLATFORM
 Transit points are not accessible
MAKE TRIP FAST AND COMFORTABLE
MAKE GETTING TO PLACES SIMPLE AND STRAIGHT FORWARD
MAKE TRANSFERS CONVENIENT AND HASSLE FREE

6. KEY PERFORMANCE INDICATORS :
 Accessibility
 Availability
 Reliability
 Safety
 Comfort
The measurement of performance is the key,
because……
•If you can’t measure it, you can’t control it…
•If you can’t control it, you can’t manage it…
•If you can’t manage it, you can’t improve it.
•But who watches and measures the KPI???
MAKE TRIP FAST AND COMFORTABLE
MAKE GETTING TO PLACES SIMPLE AND STRAIGHT FORWARD
MAKE TRANSFERS CONVENIENT AND HASSLE FREE

7. TRIP

Collective movement of people
ROUTE

Servicing common corridor with greater efficiency
PLATFORM

Facilitated by pooled resources (stations, street
signals, dedicated lanes etc)
This highly systemic and strategic task should be entrusted to
a centralized authority with a high-level of
legislative and enforcement powers
This operational task is typically taken by private or
quasi-government operators.
Pooled resources refer to commonly shared infrastructures funded by taxpayers.
Ownership by local and regional level authorities is a must.

8. Public transport provides
3 functions for society
 Mobility for those not
using private transport
 Development tool to
reduce infrastructure
costs
 A business operation
with potential for profits
Building Blocks of the new Ecosystem

11.  Transformation from auto companies to mobility
solution providers
 Integration of Various forms of transportation
system
 Unified access by way of technology
 Service design to meet supply chain constraints
 Re-engineering infrastructure to accommodate
scalability requirements

12.  Transportation system as a seamless system in which travelers can
conveniently shift between modes and operators to complete trips
that meet their individual and business needs.
 Ticketless systems
 Octopus – Hong Kong
 Predicting Demand and optimizing capacity, assets and
infrastructure
 Improving end-to-end mobility experience
 Reducing the environmental impact
 Assuring safety and security

13. 
Various private equity players and venture
capitalists has shown interest in mobility solutions
 DLF is designing Rapid Transit System (RTS) a medium
metro rail in Gurgaon which will connect to the Delhi
metro
 DLF wants an RTS in some of its major project like
10,000 acre township in Bangalore
 Infusion of Radio Taxis by V-Link
 Web-based Indmoto has organised car pooling system
by enabling commuters to find matches based on city,
time and pincode

14.  Bus Rapid Transit (BRT) has reorganised urban
traffic and ensured equity in road space
allocation. BRT is described as bus priority
corridor

15.  Authority  provides & owns all vital
infrastructure (incl. routes)
 Operators  contracted to the Local or Regional
Authority for a 3-5 year period
 Contract  through open tender and KPI
 Operators are paid a contract fee for services
provided with additional incentives for
meeting/exceeding KPI
 Feedback from passengers becomes vital

16.  Public Transport is a “rakyat issue”
 The people must be engaged to use, support, and
keep watch in public transport
 A Centralized Authority will:
 Create national standards for public transport
 Integrate planning with National Physical Plan
 Determine funding needs and provide funds
 Invest in critical improvements to infrastructure

17.  Local / Regional Authorities are empowered to
carry out the regulation of public transport with
public/user feedback
 Local / Regional Authorities would be integrated with
economic growth regions
 Focus on local and regional planning as identified in the
National Physical Plan
 Ownership of crucial public transport infrastructure
 Provision of investment capital and funding

18. KPIs are:
 Accessibility
 Availability
 Reliability
 Safety
 Comfort
INPUTS
Taxpayers Money
Infrastructure Technology
Resources Labor
CONSUMED OUTPUTS
Passenger/mile
Passenger/energy unit
Infra. KPIs Service KPIs
PRODUCED OUTPUTS
Journey covered/labor
Operational cost/mile
Vehicle seats/mile
COST EFFECTIVENESS COST EFFICIENCY
SERVICE
EFFICIENCY
OPERATORS’
SCOPE
AUTHORITIES’ SCOPE
Fair allocation of risks and responsibilities between operators and authorities

19. 20
Ministry of
Public Works
One Stop Transport Solutions
20%Equity-80% Debt
Cargo owners
Commuters
Companies
Credit
line
Credit Institute of
India
National Transport
Reg. Auth.
Contributes
Land and
Water rights
Payment for
services
Interest
payments
Regional
Environmental
Office
services
Services:
Basic non commercial
Complementary
Commercial
RITES
(Construction Companies)
Specific contract
MOU
Inspection /
cargo control
Environmental
Regulation
Management
Fee

20. 21
One Stop Transport
Solution
Parking
Real Estate
Development
Commercial
Services
Road to Road
Operation
Warehouse
Rail to Rail
Operations
Revenues from the
Business or fee
Revenues from the
Business or fee
Rental tariff for m2
and % of business
Fee Fee Fee

21.  New York City Transport Masterplan 2030
https://www.nysdot.gov/portal/page/portal/main/transportation-
plan/repository/masterplan-111406.pdf
 IBM Case Paper on Smart Transports
http://www.ibm.com/smarterplanet/global/files/uk__en_uk__rail__smarter_sy
stem_trasportation.pdf?
ca=content_body&met=uk_smarterplanet_rail_examples&re=spc
 Bangalore Transportation – Research & Reports
http://www.praja.in/en/gyan/bangalore-transportation-research-and-
reports

22. THANK YOU