TNSTC to launch cargo, logistics services to earn non-fare box revenue

CHENNAI: To reduce their recurring losses, the Tamil Nadu State Transport Corporations (TNSTCs) would soon launch cargo and logistic services through a public private partnership (PPP) 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 also provide transaction advisory services for identifying a concessionaire for the logistic services for TNSTCs under the PPP mode. The PTCSL has floated a tender to enable this.

A senior official said that the State Transport Undertakings (STUs) could no longer depend on fare-box revenue alone through on-board collection, passes, revenue and reimbursement of travel cost for concession holders.

“They have to tap other sources of revenue such as commercial revenue. One of the ways to do that is to explore the feasibility by providing a Cargo/Logistics Services by utilising their fleet services for generating additional revenue. It can certainly help TNSTC to minimise their recurring losses,” the official pointed out.

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

“Considering the vast land assets of all the eight STUs along with its bus fleet, the cargo and logistics services would generate huge non-fare box revenue for the corporations,” the official added.

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