A LIVE PROJECT REPORT ON BRTS Ahmedabad

Subject: SRM Submitted To Prof. Raji Bhavsar

Submitted by: Nilesh Prajapati Roll No.74

1.1 Transport System in Ahmedabad 1.2 Organization history 1.3 Team Structure 2.0 3.0 4.0 5.0 Porters 5 force Analysis 7 Ps of BRTS Customer Base Quality Assurance

1.1 Transport system in Ahmedabad

Emergence of sectors like transport helping the People in various ways with varied Consumer insights. Despite having many troubles transport in Ahmedabad have been maaged by many transport facilities. AMTS, rickshaws and private vehicles provide people to transport from one place to onother place. There are already many players in Ahmedabad which provide transport to public.

1.2 ORGANIZATION HISTORY:

Ahmedabad BRTS is a highly ambitious rapid transport system developed by Gujarat Infrastructure Development Board (GIDB) for the city of Ahmedabad, recognizing that no single mode would cater to the mobility needs of the city and that Bus forms the most critical segment of the public transport system in the Ahmedabad city. GIDB has thereby entrusted the system design task to CEPT University. A part of first corridor connecting Pirana to R.T.O. was opened to public on October 14, 2009 by Chief Minister of Gujarat Narendra Modi.

Ahmedabad BRTS
Ahmedabad BRTS

Background

Transit type

Rapid transit

Number of stations

75 Bus Stations

Daily ridership 140,000 (Will increase to 2 lakh by March 2012)

Website

Ahmedabad BRTS

Operation

Operator(s)

Ahmedabad Janmarg Limited

Technical

System length

44.5 kilometres (27.7 mi) (Will be added another 30 km by March 2012)

Overview

Nehru Nagar - Shivranjani Crossroad Corridor Ahmedabad is a city with present population of 72 lakhs (7.2 million) which is likely to be 11 million by the year 2035. This would lead to agglomeration of surrounding settlements like Naroda and other smaller villages, which ultimately increases the area of the city, which may become 1,000 km2 in the year 2035. Moreover, about 1/3 of total as well as student population reside within walking distance from the proposed BRTS network. Thus, there is a growing need for greater accessibility to basic amenities and opportunities for mobility in the city. In such a state of rapid urbanization, it is very essential to have an efficient and rapid transit system, which will sustain and accelerate the growth of the city. In order to cater this future demand, the city and State Government has initiated a Plan for Integrated Public Transit System, in which Bus Rapid Transit System (BRTS) is one of the components. This will facilitate the major mobility need of the people. In future, this system will get integrated with Ahmedabad Metro by the addition of two lines running through east to west and north to south. In addition, after the implementation of Ahmedabad BRTS and MetroLink Express Gandhinagar and Ahmedabad, Gujarat International Finance Tec-City (GIFT) would be easily accessible through a multimodal mix of Rapid Transport Systems. Unlike other Indian BRTS projects, this project is on full-swing and the system designs are quite similar to Curitiba's Rede Integrada de Transporte and Bogota's TransMilenio which are exceptionally better than Delhi BRTS and Pune BRTS. By following this system Chennai BRTS and Bangalore BRTS are also under implementation. Second half of the first phase of the BRTS was inaugurated on December 25, 2009, birthdate of Atal Bihari Vajpayee, former Prime Minister of India. Phase I was stretched up to Kankaria Lake, to cater eastern part of the city also. It was the first time that BRTS buses crossed river & reached Maningar, the most developed area of the city. It was inaugurated by Gujarat Chief Minister Narendra Modi.

City Transportation Planning

This unreferenced section requires citations to ensure verifiability. Prof.H.M Shivanand Swamy, an economist and urban planner by training and is the Associate Director, CEPT University spearheaded the planning and implementation of BRTS in Ahmedabad by mapping various corridors and feeder networks. Besides giving priority to buses, the system is designed to provide dedicated lanes for pedestrian and non-motorized vehicles like cycles and rickshaws etc. Detailed Project Report (2005): Based on the feasibility report prepared by CEPT, a detailed project report for submission under JNNURM program of the Government of India was prepared by CEPT. The project has been sanctioned by the Ministry of Urban Development, Government of India. The project report included detailed planning of roadway as well as development of other supporting infrastructure and operating systems. Detailed System Design and Implementation Support (2006-ongoing):BRTS- Ahmedabad is under implementation. Detailed system design and support during construction is being provided by CEPT team. The team had already made some 100 minor design changes to avoid the Delhi and Pune fiascos.

Corridors
Given the expected travel demand on each corridor, BRTS solutions are structured.The operations plan developed not only provides route structure for BRT operations but also the rationalised routing plan for AMTS operations. This is necessary so that the two systems compliment each other rather than compete with each other. In terms of routes following three types of routes are structured to operate transit services - BRT Trunk Routes, Complementary Routes (AMTS)and BRT Feeder Routes.

1.3 TEAM STRUCTURE:

Steering Committee
The Bus Rapid Transit Project for Ahmedabad city has been guided by the steering committee chaired by Shri. K. Kailashnathan, (I.A.S), Secretary, Urban Development and Urban Housing Department, Government of Gujarat. 1. Mr. Anil Mukim - Former Municipal Commissioner, Ahmedabad Municipal Corporation (AMC) 2. Mr. P.J Pujari - Secretary, Economic Affairs, Finance Department 3. Mr. Jayant Parimal - CEO, Gujarat Infrastructure Development Board (GIDB) 4.Mr. K. Srinivas - Managing Director, Gujarat Urban Development Company (GUDC)

2.0 PORTERs 5 FORCE ANALYSIS:

Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.

I.

Rivalry:
In the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive price takers. Rather, firms strive for a competitive advantage over their rivals. The intensity of rivalry among firms varies across industries, and strategic analysts are interested in these differences. There are many rickshaw owners, AMTS and other players ehich cater to Ahmedabad local people.One of the major factors for competing as there are no defined quality standards. However, gradually good reputation can be built which then does not compel a market reach to compromise too much on price. It can be said that rivalry is high in the industry.

II.

Threat of Substitutes:
In Porter's model, substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a product's demand is affected by the price change of a substitute product. A product's price elasticity is

affected by substitute products - as more substitutes become available, the demand becomes more elastic since customers have more alternatives. The substitute to BRTS is the tendency of a person to reach the destination and distance and time to cover from a particular place.. Therefore there is need to apprise the managers the importance of decoding the customer through market research. The threat of substitute is low.

III. Buyer Power:

The power of buyers is the impact that customers have on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is near to what an economist terms a monopsony - a market in which there are many suppliers and one buyer. Under such market conditions, the buyer sets the price. In this industry, Buyer power is not that much present in the form that most of the businesses in the catchment area do not invest much in transport. The main challenge is therefore to make them understand the importance of transport in taking business decision and invest money in them. Here the facilities of the BRTS is important. Buyer power is low to medium.

IV. Supplier Power:

A producing industry requires raw materials - labor, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials or resources. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industry's profits. The lack of well experienced employees pose a constraint is good execution of a project. Since the task of field investigator is challenging and they are not paid much, resulting in high attrition rate. However large number of people is available who are willing to take up the job. So they do not have any bargaining power. The power of the supplier is low.

V.

Barriers to Entry / Threat of Entry:

It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that new firms may enter the industry also affects competition. In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits always should be nominal. In reality, however, industries possess characteristics that protect the high profit levels of firms in the market and inhibit additional rivals from entering the market. Entering into the business of transport is easy to have rickshaw but not easy to have bus like projects. As it needs AMC approval to transport in city it is very much necessary to have that. Since this is a asset based industry, doing more careful work with good service will have less threat from new entrants.

3.0 7 Ps of BRTS 3.1 Product

BRTS is a transport system in Ahmedabad which provides public transport to Ahmedabad people.

Ahmedabad Janmarg Limited

Ahmedabad Janmarg Limited (AJL), the parent company which would govern BRTS operations in the city, is constituted as a Special Purpose Vehicle by Ahmedabad Municipal Corporation, Ahmedabad Urban Development Authority and Government of Gujarat. It is presently envisaged that private operators selected through competitive bidding will carry out bus operations. AJL will soon introduce smart cards for commuters. Regular BRTS passengers will be able to buy these smart cards, which will function similar to the monthly pass system for state transport and AMTS buses. The AJL will, however, offer many schemes for the users of their smart cards. The commuters will be able to buy the smart cards at INR 500 apiece and the fare for each journey will be deducted from this amount. For example, for a journey from the RTO to Nehrunagar costing INR 5, this amount will be deducted from the INR 500 paid for the smart card. Hence, the commuters will not have to carry money for the fare every time they travel on the BRTS buses. At present, paper tickets are available at the special ticket windows at the BRTS stations. There are turnstile machines near the ticket windows, where the commuters can have their tickets punched to allow them entry inside the stations.

3.2 Price
BRTS is in market penetration policy, as being a fresh and small against competition of big giant companies.

3.3 Place
They are offering a transport at selected areas of Ahmedabad as per requirement of the city and people, they have their roots covering in Ahmedabads many areas which are well managed by BRTS service providers.

3.4 Promotion
They do not spend money on advertisement in print media or TV commercials but they believe in one to one marketing or we can say they believe in viral marketing which is created by their strong service quality to their passengers.

3.5 People
As in service industry employees plays very essential part of service quality. And BRTS knows very well importance of their employees and each employee gets chance to expose himself. They are also interested in recruiting freshers through their own selection procedure.

3.6 Physical evidence

As to prove its transport quality, BRTS have high tech systems like GPS on track in all buses which provide time to time information of each bus giving it an international advantage.

3.7 Process
Process starts from meeting with passengers understanding their needs and expectation from BRTS. Then offering service provided by BRTS. Providing time to time service better efficiency and less troubles to passengers is their process delivery to passengers.

4.0 CUSTOMER BASE

As BRTS is focusing on each and every person who use public transport to go from one place to onother who cannot afford to hire or purchase own vehicles. BRTS is offering its essential services at competitive prices. BRTS is trying to establish its network through giving best services to create customer satisfaction and viral marketing through their passengers.

5.0 QUALITY ASSURANCE:

As BRTS want to establish its brand by viral marketing it is very important to provide best services to its passengers and for each junction or terminal it appoint 3 to 4 officers to check quality of transport and for other help to passengers to make it up to the mark. And it helps it to make its service very essential and effective for its passengers for transport.