October 1, 2020: In a bid to tide over the revenue loss because of the drop in passengers amid Covid-19, the Kerala State Road Transport Corporation (KSRTC) has started a parcel service named KSRTC Logistics. While the corporation has a courier service operated by a third party, the new service will be exclusively handled by its staff using separate vehicles.
The KSRTC is following the model of Railways, which launched exclusive parcel trains to generate revenue during pandemic. “A lot of transport corporations are exploring revenue models beyond ticket sales as the increase in the expenditure on diesel and spare parts has made the operations non-profitable,” said a KSRTC officer. The corporation aims to tap the demand from various government departments, universities, Public Service Commission and public sector units along with parcels of private organisations and establishments.
To begin with, KSRTC Logistics has entered into a deal with Supplyco to provide five vehicles for a total monthly rent of `1,25,000. The vehicle will be used to distribute provision kits as part of the government’s decision to provide kits to ration card holders for the next four months. The rent is for using the vehicles for a maximum of 2,500 kilometres, beyond which the KSRTC will charge `50 for every kilometre.
The corporation will provide drivers to operate logistics services. At present, the vehicles used in depots for repair work are used for the supply. The KSRTC will have to engage at least 50 buses if it gets the prolonged deal from both Supplyco and Consumerfed. “At present, we don’t have permission to modify the passenger buses for logistics,” the officer said. “Discussions have been initiated with various organisations to strike similar deals,” the officer said. According to him, public offices would prefer a deal with KSRTC as it would be easier to get the contract without tender procedures.
Source: The New Indian Express
