Intelligent Transport System (ITS) in BMTC

Bangalore, India2015

2

BMTC Operations

6,521 Buses 6250 Schedules

5.2 Million Passengers

Daily

2400+ Routes76,636 Bus

Trips

12.9 lakh Service Kms

Improving Transport Sector value chain through Technology

Key Stakeholde

r Issues

Increasing Congestion

Non-Uniform

Infrastructure

Utilization

Incr

easing

Pollutio

n

Levels

Increasing

Congestion

Rash D

riving

Lack

of rea

l

time,

accu

rate

info

rmatio

n Unre

liable

S

ervi

ceM

anua

l tic

ket

& tol

l co

llect

ion

Increasing

Pollutio

n

Levels

Forced

reliance on

private

vehiclesM

anu

al ti

cket

&

toll

collec

tion

Increa

sing

Congestio

n

Inadequate

Incident

Mgm

t.

Systems

Declining Vehicle

utilization &

productivity

Declining Profitability

Unr

elia

ble

Ser

vice

Elements we seek to transform

Service Reliability

Cit

izen

C

entr

icit

y

Revenue Management

Org

aniz

atio

nal

C

apab

ilit

ies

Real-Time Rolling Stock Tracking

Improved Incident Management

Service ExcellencePredictive Maintenance

Real Time Information Systems

Online Journey Planners

Customized Travel Products

Mobile App

Business Intelligence Capabilities

Operational Flexibility

Alternate Revenue Streams

Optimized Business Processes

Smart Ticketing Operations

Fare ServiceIntegration

Open Loop Platforms

Optimized Fare Structures

Intelligent Transport System

(ITS)

Intelligent Transport System (ITS)

Largest scale deployment of ITS in terms of infrastructure like 10,000+ Electronic Ticketing Machines and 6500+ Vehicle Tracking Units

Largest impact to citizens as BMTC has a ridership of approximately 5.2 million (Bangalore has a population of 9.6 million)

1st

BMTC

ITS

ITS is being implemented in Bangalore by Bangalore Metropolitan Transport Corporation (BMTC). First ITS imple-mentation in urban transport in India

Intelligent Transport Systems (ITS)

GPS based Vehicle Tracking Systems (VTS)

•Live tracking of buses on GIS maps

•Location, time & speed monitoring

•Generate alerts for non-adherence to

schedule performance.

•Incident management through two way

communication system

•Generation of various graphical, tabular and

spatial reports on important parameters

Intelligent Transport Systems (ITS)

Electronic Ticketing Machines (ETM)

Intelligent Transport Systems (ITS)

•Online revenue monitoring

•Automated and secure ticketing

•Reduce tamper and pilferage

•Spot issue of tickets and manage inventory of

pre-printed tickets

Passenger Information Systems (PIS)

Intelligent Transport Systems (ITS)

•Real-time information on Estimated

Time of Arrival (ETA) for buses

•Service and other alerts for commuters

•Streaming advertisements and

multimedia content at bus stations

Challenges

Intelligent Transport Systems (ITS)

•Resistance to change with respect to transitioning from existing as-is scenario to post ITS scenario.

•Verification and digitization of existing schedule and route information taking into considerations all the changes with respect to current traffic conditions.

•Designing a comprehensive training plan which is flexible and not orthodox while accommodating the schedules of 12,000+ conductors. Conducting training camps instead of classroom training.

Challenges

Intelligent Transport Systems (ITS)

• Infrastructure forms the key component of the physical environment and as such for the ITS project. Infrastructure readiness is one of the critical factors which if not addressed adequately will have an adverse impact on the outcome of the project.

• Choosing the right GPS based Vehicle Tracking Unit (VTU) is critical as the accuracy of the reports generated by the Vehicle Tracking System and the ETA predicted by the Passenger Information System entirely depends on the data transmitted by VTU.

• Any custom developed algorithm to calculate the Estimated Time of Arrival (ETA) of a vehicle will require historical data which will build up over time. Absence of such data at the beginning can cause the ETA predications to be less accurate.

Benefits

Intelligent Transport Systems (ITS)

Induce Operational Excellence

• Provide real time information on revenue and bus operation

• Monitor and track service adherence and performance

• Improve efficiency and decrease operational costs

Revenue Management

• Integrate, automate and secure ticketing

• Facilitate fare-service integration through smart cards

1

2

Business Intelligence

• Automate data compilation & report generation to build a reliable MIS

• Act as a one stop shop for all ITS data viewable through a web application

• Utilize analytical (BI) tools to plan, analyze and appraise service

Improved Citizen Services

• Provide reliable real time information on arrival and departure of buses, bus routes to commuters through different media

• Manage and handle incidents and accidents• Increase convenience and safety to commuters

and crew• Reduces accidents as traffic would be managed

efficiently by improving communication between vehicles.

• Environmental benefits associated with public transport as ITS would increase ridership and reduce personalized motorized vehicles on roads. Sustainable mode of transport

• Improves mobility for users to travel.

3

4

Benefits

Intelligent Transport Systems (ITS)

DIGITAL MONEY AT BMTC

Smart Card Initiative

Plug revenue leakages due to pass misuse

Increase adoption of monthly/daily passes

Improve commuter experience

Enable common mobility across various modes

BMTC has embarked on converting paper based season tickets / commuter passes to Smart cards with e-Money.

Primary Objectives

INNOVATION !!

BMTC has adopted an Financial Institution based approach for implementation of solution

Financial Institution (FI) engaged for implementation of EMV enabled smart card solution for BMTC smart card

Almost zero cost to BMTC on cards infrastructure. FI funds cost of Clearing house and card Capex and Opex, in lieu of access to BMTC commuter base

Smart Cards used for other merchant transactions on which BMTC gets a declared commission

FI pays to BMTC – a) royalty fee, b) ~100% transit revenue from cards, c) per transaction commission for merchants outside BMTC

FI maintains the system as long its engaged FI promotes the card through advertisements and

freebies to incentivize commuter to use the BMTC card for purchases across merchant outlets

Smart Card Based Fare Collection System

Commuters

Bank issues

Pre-paid Co-Branded Travel

Card

City Buses

Bus/Metro

terminal parking

Fare collection

• BMTC hired a Financial Institution (FI) to issue a Pre-paid EMV enabled Travel card to its customers (transit commuters)

• The EMV* technology based smart cards can be accepted within network of transit operator’s terminals. The Transit Operators fare acceptance terminals would need EMV enabled card readers

• The same card can be used on network of other payment methods like Visa/MasterCard/RuPay/Amex at any merchant outlet

• Model is convenient for a commuter as Transit Card acts as an ‘eWallet‘ that can be used for all payment needs as single media

• Model also aids customer to gain loyalty points for usage of cards on transit or non transit network.

Shopping malls/ retails stores etc.,

Banks

Central Clearance

House

2

3

Far

e d

edu

ctio

n

inst

ruct

ion

5

Levy Transa

ction

charges o

n

merchant &

Bank

earns Reve

nue6

Bank pays back fixed loyalty & share non-transit transaction revenue with transit operator

Fare collection

Retail Purchases

(Non-Transit transactions)

1

4

Fare

Distrib

ution to

transit

operators

How is it Unique?

Set the ground for the new National Common Mobility Specifications

Interoperable with EMV standards Brings best practices of payments and financial services

industry to public transport

New business model as compared to existing models adopted

Business Model leverages BMTC customer base to significantly substitute investments

Introduction of Financial Institutions (FI) as service provider instead of Card agencies and IT service providers

FI willing to fund and setup smartcard design, distribution, clearing house, card customer services

Reduces risk on technology and vendor lock-in in the services model

What is the Value it offers? Common mobility enabled with the smart ticketing of

BMTC.

Substantial financial benefits to BMTC vis-à-vis existing Mode

Reduced CAPEX (Potential savings of ~ INR 200 Cr to BMTC – Planned outlay for smart card solution)

Potential Revenue Generation through card transactions outside transit network

Receive royalty from FI Limited Operational overhead as FI offers Card operations

and customer services Reduced Cash management - Promotion of electronic cash

Wider utility of card (doubling up as CC/Debit card) promotes wider acceptance among travellers Allows multiple card products in market proven for EMV

based transactions

Can be extended to other transit operators for the purpose of Common Mobility

Reduce vendor and technology lock-in

Challenges in adoption of Digital Money

Cash is king for many Farmers, small traders Digital money inclusion needs elaborate outreach and

awareness

‘Ticketing’ experience in buses is lot different from POS payment experience

Crowd Management Behavior change – Conductors, Commuters 100% Enforcement is costly, not ‘customer friendly’.

Technology can be an enabler, so long as it works Connectivity in a moving bus with current infrastructure in

cities Ticketing Terminal battery life - 14-hour service, 600-800

tickets Behavior change - easy to blame it on technology

Technology itself is changing Mobile ticketing as next frontier – the potential and

practical difficulties in transit environment

THANK YOU !!