TNSTC plans to launch cargo and logistics services to earn non-farebox revenue

CHENNAI: To reduce their recurring losses, Tamil Nadu State Transport Corporations would soon launch cargo and logistic services through a public private partnership model to generate non-fare box revenue by utilising its land assets and fleet services.

The state government has instructed Pallavan Transport Consultancy Services Limited (PTCSL) to appoint a consultant for the preparation of feasibility report and providing transaction advisory services for identifying a concessionaire for cargo and operating logistic services for Tamil Nadu State Transport Corporations (TNSTCs) under Public Private Partnership (PPP) mode.

The PTCSL has floated a tender to appoint a consultant for the preparation of feasibility reports and providing transaction advisory services.

A senior official said that State Transport Undertakings can no longer depend on fare box revenue alone through on board collection, passes, revenue and reimbursement of travel cost for concession holders by the Government.

"They have to tap other sources of revenue. There is a revenue source other than traffic revenue which is known as commercial revenue, it can certainly help TNSTC to minimise their recurring loss. One of the commercial revenue that can be tapped by the TNSTCs is to explore the feasibility by providing Cargo/Logistics Services by utilising their fleet services for generating additional revenue, " the official said.

Already, the State Express Transport Corporation has launched parcel services on its bus fleet. All the STUs are using the advertisement on the buses to generate revenue.

"Considering the vast land assets of all the eight STUs alongwith its bus fleet, the cargo and logistics services would generate huge non-farebox revenue for the corporations, " the official added.

All the eight STUs including MTC together have a fleet of 20,127 buses and 315 depots spread across the state.