CHAPTER 1 INTRODUCTION TO ROAD TRANSPORT AND …€¦ · INTRODUCTION TO ROAD TRANSPORT AND...
Transcript of CHAPTER 1 INTRODUCTION TO ROAD TRANSPORT AND …€¦ · INTRODUCTION TO ROAD TRANSPORT AND...
CHAPTER 1
INTRODUCTION TO ROAD TRANSPORT AND
AHMEDABAD MUNICIPAL TRANSPORT SERVICE
(AMTS)
1.1 BACKGROUND
1.2 HISTORY OF EVOLUTION OF ROAD TRANSPORT
1.3 ROADWAYS IN INDIA
1.4 DEVELOPMENT OF ROAD TRANSPORT IN INDIA
1.4.l Road construction in India
1.4.2 Highway Development ofNHAI
1.4.3 Public Private Partnerships
1.4.4 Road Transport and the 11 th Plan
l.4.5 Nationalization of Road Transport
1.5 IMPORTANCE OF ROAD TRANSPORT
1.6 HISTORY OF AMTS AND ITS ORGANIZATION
1.7 SELECTION OF RESEARCH PROBLEM
1.8 SCOPE OF THE STUDY
1.9 OBJECTIVES
1.10 LIMITATIONS OF THE STUDY
1.11 CONTRIBUTION
1.12 CHAPTER PLAN
CHAPTER!
INTRODUCTION TO ROAD TRANSPORT AND
AHMEDABAD MUNICIPAL TRANSPORT SERVICE
(AMTS)
l.l BACKGROUND
Transportation is the backbone to the development of urban areas. It enables functioning
of urban areas efficiently by providing access and mobility. Passenger transport has an
overriding influence on the functioning of the city. Demand for transportation is a
derived demand. PopUlation characteristics such as size, concentration, income, vehicle
distribution, economy in terms of location of employment, education and entertainment
activities etc. determine travel demand. The city of Ahmedabad has great importance in
the economy of Gujarat owing to the large concentration of economic activities and their
high growth rates and productivity. The city of Ahmedabad was founded in 1411 AD as
a walled city on the eastern bank of the river Sabarmati, now the seventh largest
metropolis in India and the largest in the state. The urban agglomeration CUA) population
has increased from 3.31 million in 1991 to 4.5 million in 2001 and Ahmedabad is the
commercial capital of the state. Once upon a time it was known as the textile capital of
India, it is also a major industrial and financial city contribnting about 14% of the total
investments in all stock exchanges in India and 60% of the total productivity of the state.
It lies in the cotton belt of Gujarat, 552 km north of Mumbai and 96 km from the Gulf of
Cambay. It has good air, road and rail links with Mumbai and Delhi and can international
airport. It has seven major roadways, one expressway and five rail networks. A new
corridor between Ahmedabad and Pune has recently emerged, connecting the city to four
other metropolitan cities of Vadodara, Surat, Mumbai and Pune. The greater Ahmedabad
Urban Agglomeration covering an area of about 4200 sq. km. An area of 190 square
kilometers under the jurisdiction of Ahmedabad Municipal Corporation CAMC). The city
is governed by Ahmedabad Municipal Corporation CAMC), established in July 1950. It is
a huge organization with over 40,000 employees. It provides a number of urban services
such as water supply, roads construction, sanitation, primary education, city transport
etc. The Ahmedabad Municipal Transport Service is the body of AMC. AMTS is
expected to perform on self financing basis.
2
1.2 HISTORY OF EVOLUTION OF ROAD TRANSPORT
The bus is a neologic version of the Latin Omnibus, which means "for all". Thus
meaning of bus is "vehicle for all". The first public transport system for general use
originated in Nantes, Fance in 1826. Stanislas Baudry, a retired army officer set up a
short route between the centre of town and his public baths and used Omnibus to travel
between two points.
There is a claim from the UK where in 1824 John Greenwood operated the first "bus
route" from market street in Manchester to Pendleton in Salford. In 1828, Baudry went
to Paris where we founded a company named as "Enterprise Generale des Ombinus de
Paris". His son Endond Baudry founded two similar companies in Bordeuax and in
Lyyons.
A London newspaper reported in July 4, 1829 that the new vehicles, called the Omnibus,
commended from Paddington to the city. This bus service was operated by a George
shillibeer.
In New York, Onmibus servIce also began in 1829, When Abraham Brower, an
entrepreneur who had organized volunteer fire companies, established a route along,
Broadway starting at Bowling green other American cities soon followed suit :
Philadelphia in 1831, Boston in 1835 and Baltimore in 1844. The great limitation of this
onmibus was that it was too slow.
Motorized transport developed in 1905 having more speed than usual omnibus. The
motorized system proved miracle in revolution of road transport. A series of technical
improvement took place during early 1920s, mono co que body construction in 1931,
automatic transmission in 1936, the diesel engine bus in 1936, the fist acceptable more
than 50 passenger bus in 1948 and the first buses with air suspension in 1953.
Bus services were a focal point in the American Civil Rights movements of the 1950s
and 1960s in the U.S. In the period after the American Civil was ended in 1865, racial
segregation in Public accommodations, including public transport such as rail and bus
services was enforced through Black Codes and Jim Crow laws in the south.
Table 1.1 shows the chronological history of transportation indicating the history since
invention is elaborated as under.
3
Table 1.1
The History of Transportation
Fixed wheels on carts are invented - the first wheeled vehicles in 3500 Be
history. Other early wheeled vehicles include the chariot.
13500 Be I River boats are invented - ships with oars
12000 Be I Horses are domesticated and used for transportation.
1181-234 liThe wheelbarrow is invented.
I
1
770 I Iron horseshoes improve transportation by horse
1492 Leonardo da Vinci first to seriously theorize about flying machines -
with over 100 drawings that illustrated his theories on flight
Comelis Drebbel invented the first submarine - an human oared 1620
submersible
1662 Blaise Pascal invents the first public bus - horse-drawn, regular route,
schedule, and fare system
1
1740 I Jacques de Vaucanson demonstrates his clockwork powered carriage
1783 First practical steamboat demonstrated by Marquis Claude Francois de
Jouffroy d'Abbans - a paddle wheel steamboat
1
1783 I The Montgolfier brothers invent the first hot air balloons
1
1787 IISteamboat invented
I
1
1769 Irirst self-propelled road vehicle invented by Nicolas Joseph Cugnot
1
1790 IIModem bicycles invented 1
1801 Richard Trevithick invented the first steam powered locomotive
(designed for roads)
1
1807 I Isaac de Rivas makes a hydrogen gas powered vehicle - first with
4
I I internal combustion power - however, very unsuccessful design
1807 First steamboat with regular passenger service - inventor Robert
Fulton's Clermont
1814 George Stephenson invents the first practical steam powered railroad
locomotive
1
1862 I Jean Lenoir makes a gasoline engine automobile
1
1867 IIFirst motorcycle invented
I
1868 George Westinghouse invents the compressed air locomotive brake -
enabled trains to be stopped with fail-safe accuracy
1
1871 IIFirst cable car invented
I
1885 Karl Benz builds the world's first practical automobile to be powered
by an internal combustion engine
1899 Ferdinand von Zeppelin invents the first successful dirigible - the
Zeppelin
1
1903 1 The Wright Brothers invent and fly the first engined airplane
1
1907 1 Very first helicopter - unsuccessful design
1
1908 I Henry Ford improves the assembly line for automobile manufacturing
1908 Hydrofoil boats co-invented by Alexander Graham Bell & Casey
Baldwin - boats that skimmed water
1
1926 I First liquid propelled rocket launched
1
1940 IIModern helicopters invented 1
1
1947 IIFirst supersonic jet flight 1
1
1956 1 Hovercraft invented
5
1
1964 1 Bullet train transportation invented
1
1969 1 First manned mission (Apollo) to the Moon
1
1970 IIFirst jumbo jet
1
1
1981 IIspace shuttle launched
1
1.3 ROADWAYS IN INDIA
Roadways in India have come a long way. Starting from the pugdandies (a small path
created naturally due to frequent walks) of earlier times to the present-day Rajpath of
delhi , the country has crossed many spheres of road travel. The 'thread that binds the
nation together' is truly a deserving metaphor for a road network that is one of the largest
in the world. Its grand system of national highways, state highways and the roads that
run endlessly within cities are marvelous.
India has its well-connected transport network since the time people started keeping
records. The great Indian epics the Ramayana and the Mahabharata mention chariots and
carts embellished with various gems and precious metals. The Pushpak Vimana or the
bejeweled chariot, which was in Lanka, the kingdom of Ravana, is described in detail in
the Ramayana. Horses, asses, and mules were used to draw these carts.
Some 2,500-10,000 years ago, our ancestors traveled through woods on hunting sprees
and left traces of their mud tracks known as pugdandies-the most ancient trace of roads.
Harappan and Mohenjodaro civilization, which dates back circa fourth millennium BC,
provides ample understanding ofroads.
The Central Road Research Institute (CRRI) brought out a book in 1963 which states,
"The streets were laid out in regular order and ran in straight lines. The main streets were
aligned from east to west or from north to south crossing each other at right angles.
Small deviations from this general plan exist, but they are very rare. The minor streets
were laid parallel to the main streets. The main streets were of considerable size. The
biggest street so far excavated is about half a mile long and about thirty-three feet
wide ... " It is interesting to note that in Harappan culture there was no use of bitumen for
making roads, though in Babylonian civilization one find ample evidence of the use of
bitumen in road construction.
6
In the Atharva Veda, we find references to road construction and information on
precautions to be taken. There is mention in KautiIya's Arthasashtra about mechanism of
roads for chariots and stresses upon the traffic rules and road safety. From the 6th
century to 4th century BC, there was development of small independent states in several
parts of India. With the development of culture and trade, cities like Vaishali, Sravasti,
Rajagriha, Kurukshetra, and Ujjaini had roads to facilitate socio-economic intermingling.
Ujjaini, capital of Avanti, was an important trade center and connected with northern
trunk routes to modern Bharuch, an important seaport.
Development of roads took a new turn during Mauryan rule in the 4th century. The
administration constructed Rajpath (high roads) and Banikpaths (merchant roads).
Megasthenes, the Greek traveler, wrote that the Mauryan Empire took a big stride to
develop roads for communication. He recorded a Rajamarga or the king's highway,
which was also a trade route and a precursor to the modern Grand Trunk Road.
It was nearly 22 krn wide and 2,400 km in length with a pillar every 1.8 krn. It had trees,
wells, and rest houses on either side. Any traffic jam on the Rajamarga was liable to
punishment! And, of course, it goes without saying that maintenance of roads was a
significant feature of a Mauryan administration. This tradition continued and
Chandragupta's grandson, Ashoka, who was a great and compassionate ruler,
strengthened the system immensely. He erected huge monoliths across the country and
ensured that there were good roads for his men to travel upon. He had given special and
very strict instructions that there should be a banyan tree (Ficus bengalhensis) every 1.5
krn and also well-maintained rest houses and watering stations. There is story that many
centuries later a king wanted to remove one of Ashoka's roadside pillars. He had to use
2400 men to lift it. Judging by the weight of the pillar the road must have been
sufficiently strong and wide to bear its weight. In Mauryan day's, roads played a key role
in military operations to keep the vast country united.
Records reveal that during the Gupta era there was also a road connection with South
India. There were three major routes-one was a connection with Northeast India via
Didisa, the other cOimected to the seaport of the Western coast and the third connected to
Pratisthana, the capital of Satvahana Empire. There are also evidences of a route
facilitating trade with Iran and China.
7
If kings and emperors built roads, there are also stories of how saints traversed these
roads to prove their existence. Sankara, a great South Indian philosopher, traversed the
whole length and breadth of the country setting up five very pilgrimage centers. He did
all his traveling before the age of 32, when he died. So that is eloquent of how many
roads must have been there for his entire journey was accomplished on foot.
The Mughal era was the golden era for roads as the whole oflndialndia was effectively
connected to control the vast empire. With the advent of the British, a new awakening
dawned uponlndialndia. The Eastlndialndia Company revived ancient routes and
renovation was initiated. The technology of the West came into play and linkages were
well established which provided the British the inroad to rulelndialndia for over two
hundred years.
Thus, one can see that since ancient times roads were stressed upon. Roads also worked
as inroads to the development of civilizations, and provided human beings a corridor of
communication for venturing out to newer frontiers of achievements.
In the nineteenth century, the old modes of transport, the cart and the carriage, were still
used. The new additions, especially in the north oflndialndia, were all horse drawn. They
were the tonga, ekka, and shikram (a box-like four-wheeler). Carriages on the European
pattern also came into use such as the landau, buggy, trap, phaeton or Victoria. Hand
drawn and hand-pushed carts were also used for conveying people. The palanquin and
dolie carried by men were also used as transport for people.
Today, alternative modes of transport are on the anviL Yet, amidst all this, Road
transport is still the dominant mode of transportation - both for moving goods and
passengers. India has a huge network of roads comprising of National Highways, State
Highways, Major District Roads and Village and other roads .In fact, it is the third
largest road network in the world covering a total length of 33,00,000 krn.
The road network is assuming a pivotal role in the movement of goods and passengers.
There has been a substantial shift in the mode of transportation from Railways towards
the road sector. While the Railways handle only 40% of the freight and 20% of the
passengers load, 60% of the goods and 80% of passenger's movement takes place
through roads. It is anticipated that the function of the road network will further increase
in the foreseeable future.
8
Though the National Highways constitute only 2% of the entire road network, they carry
about 40% of the freight and passengers. The National Highways cover a length of
52000 km and pass through every state of India. They are the vital lifelines of the
economy making possible trade and commerce.
The National Highways besides connecting the major cites, i.e, Delhi, Mumbai , Chennai
and Calcutta link a number of other important towns and commercial hubs .The National
Highways pass through the following cities and towns: Delhi, Mumbai, Calcutta,
Chennai, Ahmedabad, Chandigarh, Kullu, Shimla, Jammu, Kangra, Amritsar, Agra,
Lukhnow, Gorakhpur, Bagdogra, Guwahati, Jorhat, Patna, Ranchi, Varanasi, Allahabad,
Kanpur, Jaipur, Gwalior, Jodhpur, Udaipur ,Bhopal, Vadodara, Jamnagar, Rajkot,
Bhavnagar, Aurangabad, Nagpur, Hyderabad, Bhubaneswar, Indore, Vijayawada,
Vishakhapatnam, Tirupati, Banglore, Manglore, Coimbatore, Tiruchirapalli, Madurai,
Thiruvanathapuram, Madras, Bombay and Trivandrum.
There are 259 National Highways on the basis of their route numbers. However, the
construction and upkeeping of roads is one of the country's most continuous and
expensive tasks. Driven by the ambition to connect the various regions of the country
with high quality motorable roads, the Ministry of Surface Transport so far has laid down
a stretch of 52,0 I 0 km of national highways in the country distributed over various
states.
1.4 DEVELOPMENT OF ROAD TRANSPORT IN INDIA
1.4.1 Road construction in India
Development of the road in India was neglected due to various reasons in the first aspect,
central and state government did not appreciate the need and importance of the
developing the road system. There was also a shortage of road building materials such as
road rollers, JCB earth movers, tar, cement, etc.
The first five year plan introduced in 1951, there were over one lakh sixty thousand kms
surface roads. In 1959 Hyderabad plan was adopted. The plan was formulated a 20 year
period the total length to be reached was 6,48,000 kms. Unsurfaced roads, the target of
this plan was to bring every village in a well developed agriculture area within 6 kms of
metal road and 2.5 kms of any road. The third plan at this objective for road
development. The cost of the road development programme includes in third plan was
9
Rs. 830 crores. consideration was given to road development in rural area and border
road.
There after in next three plan planning commission provided Rs. 8600 crores for the road
programme and the road transport. In 7th plan outlet was Rs. 5200 cr. on road
construction but actual expenditure was Rs. 6300 cr.
Table: 1.2
Road constructions progress
(000 kms)
Type 1950-51 1970-71 2001-02
Surface 160 400 1420
Un surface 240 520 2480
Total 400 920 3900
The Indian road network is the largest in the world. Indian roads can be put in the three
categories national highway, state highway, district and rural road. The national
highways have a road length of any 65600 kms. or it can be said just 2% of the length of
the total road system but they carry nearly 40% of the routes and traffic national highway
system is a primary grid which under the direct responsibility of the central government.
There are rural road constructed under the minimum needs programme, rural landless
employment insurance programme, national level rural programme and command area
development. Under all such programme the aim of road construction is to link villages
with different parts of the rural areas.
Though much has been achieved, a lot more has to be done to improve road system in
India. Only half the road length in the country is provided proper surface. Even in the
case of national highways 30% of the road length has the single lane road pavement 36%
villages in country do not have road connection and 65% of the villages suffer from all
weather road.
10th plan (2002-07) national highway development project for improving the mobility
easy accessibility, it was felt that roads construction should be paid more attention. The
planning Commission accepted National Highway Development Programme (NHDP)
10
and Prathan Mantri Gram Sadak Yojana (PMGSY) for rural roads. It can be said that it
was the most important, ambitious and most useful project launched after independence
and the project that would cost the government nmning into lakh crores. In doing so, the
main idea is to connect four major cities, Delhi, Mumbai, Kolkata, and Chelmai.
In the phase to the north-south, east-west (7320 km) that links Kashmir in the north to
Kanyakumari alongwith the diversion from Salem to Kochi and Silichar to Porbandar in
the west.
Third aspect was connecting the ports and other projects with the road length of 1157 km
and in the third phase 40 IS km length of road was meant for four lane roads of which
4000 km in the year 2005 approved at an estimate cost of Rs. 22000 crores.
By the end of the year 2005-06 nearly 6300 km ofroud under NGDP nearly 5100 km lie
on the golden quadrilateral was completed and another 6200 km was under construction.
The government fees that the north-south and east-west corridors will be completed by
December 2008. But it does not appear this target may be achieved. The phase three, one
is expected to be completed by the December 2009.
Over the above, the government of India has got ambitious plans which are as follows:
(i) Special accelerated road development programme in the northern areas for better
connective with the remote areas of north-eastern reason by 2/4 lane and
improvement on national highway, state road and roads of strategic importance in
the north eastern 8 states.
(ii) Upgrading the national highways, in phases 2 lanes, 4 lane and 6 lane and
development of ring road, by-passes, service roads, etc.
(iii) The project of NHDP is being experimented by national highways authority of
India. The main source of its expenditure is fuel cess which is Rs. 2 per liter on
petrol or diesel. NHAI has got funds from World Bank, Asian Development
Bank, and many other international institution. In further NHAI plans to
implement UHDP through public private partnership.
1.4.2 Highway Development ofNHAI
After independence road transport has taken up a monopoly road in the form of transport
of people and the goods. Road is lifting 80% of passengers and 60% of goods freight and
this expected to rise to 85% and 65% respectively by the year 2009. This will increase
11
the quality and capacity of national and state highways which have continuous traffic and
overall economic growth of the country. One important note is still 15% of national
highways and 75% of the state highways are still single lane road but are being
transformed into double and four lane roads.
With the above figure 20% of National highways are all ready converted into double
lane. 50% of the two lane roads have to be strengthened. 30% of two lane roads are to be
converted into four lane and some specific corridors have to be developed into express
ways.
Road construction in the passed, had been financed by public works departments by the
center or the states. The amount for such project needs very big amount which is beyond
capacity of public sector. Government of India has amended national highways act in
1995 show that private sector can participate in construction, maintenance and road
operation or on BOT (Build, Operate and Transfer). The government has taken certain
steps to attract private sector for the development of highways.
Government has formulate and ordinance for land acquisition for construction national
highway. Once the Government authority declares that the land is required for the
development of national highway. This land is vested with the central government and
negotiated companies.
Government has exempted from forest clearance and from environment.
The government has brought simplification in progress of road construction and
development project costing up to Rs. 100 crores can be approved by the ministry of
surface transport levy as user fee (toll) on the four lane roads including those road also
which are funded by the budget. The revenge generated through user fee will be used for
further road development.
1.4.3 Public Private Partnerships
The projects having a high economic potential, but which may not be commercially
viable, government has decided for such projects on a build and lease basis. A
commercial firm first invests the funds required for the project and then is paid back on
contracted annual sums over a period of time as priority agreed upon.
12
To have the support and participation of the private sector the government has allowed
the national highway authority to take part in the equity of a company promoted by
private or the public sector.
During the tenth plan, private public partnership are more preferred for construction and
operation of highways.
Foreign investment has to be liberalized in the road sector approved to the extent of 74%
is immediately given for foreign equity in the construction of roads and bridges and 51 %
foreign equity in support services to land transport like operations of high bridges, toll
roads and vehicles.
1.4.4 Road Transport and the 11 th Plan
Road highways development in keeping in Vlew the mobility and connectivity an
extended and expanding programme was undertaken phase-wise in which in the third,
fourth and fifth phase four lane of important sections, two lane and six lane of Golden
quadrilateral NHDP were to be undertaken, followed by Phase six NHDP expressways
and phase VII ring rods, bypasses etc. construction was to be undertaken.
Taking into account all NHD programmes, would involve 45,974 kms total length and its
cost would be Rs. 2.20 lakh crores during the eleventh plan. This would need an
extensive public private partnership to take over the work.
Similarly PMGSY programme pertaining to rural roads is being expanded to habitations
and 500 hilly areas and tribal areas with all weather ro.ads by this programme villages
would benefit from markets.
1.4.5 Nationalization of Road Transport
Prior to nationalization there was fierce competition among the private operators. The
services rendered were concentrated only on profitable routes. Further only large cities
and towns attracted the attention of private bus operators and rural areas and tribal belts
were largely ignored whose only motive was to make profit. The conditions and
maintenance of vehicles was poor and the standards of services provided were very low.
The passengers were exploited by the private operators. The rates varied from one
operator to another, one period to another. The conditions of bus staff were miserable.
The growth of fleet did not match the growth in the demand the dispersal of bus services
was even among the plains hilly areas and deserts. An important argument in favour of
13
nationalization was that the size of the fleet of privates operators was far from optimum
thereby leading to wastage of economic resources and mismatch between demand and
supply of road transport which restrained the growth process in the country. This
argument was countered by the logic that nationalization would harm the
competitiveness in the passenger road transport, introduce an element of rigidity in the
sphere of management of bus routes and stations, lead to the draining of resources by
way of payment of compensations to the owners of private buses, encourage loss making
and lead to unemployment of bus operators. It was also argued that nationalization would
be an economically disastrous move in that the government would need to invest large
sums of money on the acquisition of buses, maintenance of operating staff and creation
of bus stations and workshops.
The arguments against nationalization received considerable support from the contention
that the motor vehicles Act,1939 was already there to regulate road transport. It was the
bus operators who had to operate buses according to the provisions of the said Act and
that only sum additional measures were required to be taken to fulfill the public ends. It
was contended that what was required was control of road transport and not its
ownership. The government of India came out with a moderate approach and suggested a
tripartite scheme for managing passengers road transport according to which joint stock
corporate were to be set up in different states whose shareholders would be the Indian
railways, the state governments and the motor bus operators each contributing 35 %,
35% and 30% of share capital respectively. It was suggested that if individual bus
operators could not buy shares in cash, their buses might be accepted in good condition
in lieu thereof. The profit was to be shared proportionally by three parties. This scheme
was welcomed widely but failed top take off because of the distrust of the private
operators. They felt that their voice would be heard as it was not an argument among
equals. The wind for nationalization was so strong that the government ultimately
decided to nationalize the passenger road transport under the dispensation of the Road
Transport Corporations Act, 1950. Under the Act, the Central Government empowered
the state governments to take over such routes from the private operators as they deemed
fit in the best interest of the public and receive capital contributions from the Central
Government in the ratio of 1 :2. The state government reacted favourably to this proposal
and set up public corporations to undertake this task.
14
Road transport is undertaken by state governments, private travel operators and
cooperatives. After independence most of the states have nationalized passenger bus
transport partially or completely. Today nationalized transport to the extent of 40
percent. State Governments are trying to nationalize more routes. For nationalizing such
services the reasons are:
(i) Road transport is a public utility service and therefore it should be under control
of the state.
(ii) It provides a big amount as lUcome, which can be used for economIC
development purposes.
(iii) By nationalizing, road transport, it can work as a complementary service to the
railways. There would be no competitive better transport services.
There are large scale operating advantages hence it will favour government road
transport corporations- thereby it can provide better facilities and services to passengers
in general and working conditions of its employees would increase.
The above reasons appear to be in favour of nationalization of bus transport as private
operations main desire to maximize profits and would not care for anything else. Over
and above this, by nationalizing the bus services government can achieve any goal (if
they fix) by regulations and control over it.
While Andhra Pradesh, Assam, Bihar, Gujarat, Himachal Pradesh, Jammu & Kashmir,
Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, West Bengal,
Orissa, Rajasthan and Uttar Pradesh went for setting up the public corporations, Tamil
Nadu promoted government companies to handle the road transport activity. Some union
territories and North eastern states organized the activity departmentally. The city
transport services in some major town is being run as municipal undertakings.
15
Table-1.3
Forms of Organization of STUs in India
MUNICIPAL CORPORATIONS COMPANIES GOVT. DEPTS
UNDERTAKINGS
I. Andhra Pradesh I. Anna Sathya I. Andaman & I. Ahmedabad
SRTC TCL. Nicobar ST MTS
2. Assam STC 2. Anna TC 2. Arunachal 2. Amritsar Nigam
3. Bihar SRTC 3. Calcutta TCL. Pradesh ST. Transport
4. Calcutta STC 4. Charean TCL 3. Chandigarh TS 3. BEST
4. Haryana ST Undertaking
5. Delhi TC 5. Cholan RIW
CL. 5. Mizoram ST 4. Bhavnagar
6. Gujarat SRTC Muni. Corpn.
7. Himachal RTC 6. Oeeran Chinna 6. Nagaland ST
TCL 5. Jamnagar MTS
8. Jammu & 7. ST Punjab
7. Delhi TOC 6. Kolhapur MTS
Kashmir SRTC Sikkim NT
8. Garhwal 7. Ludhiana MTC 9. Kamataka
SRTC MandaI V ikas 8. Pimpri-
Nigam Ltd. Chinchwad MT 10. Kerala SRTC
9. Himachal 9. PuneMT 11. Madhya Pradesh
Pradesh TOCL SRTC
10. Solapur MTU
10. India TOC Thane Muni.
12. Maharashtra 11. Jeeva TCL
Transport SRTC
13. Manipur SRTC 12. Kadamba TCL
14. Meghalaya TC 13. Kaqttabonnan
TCL 15. N. Bengal STC
14. Maharashtra 16. Orissa SRTC
TOCL
17. Pepsu RTC 15. Marudhu
16
18. Rajasthan SRTC Pandiyar TCL
19. S. Bengal STC 16. Meghalaya
20. Tripura RTC TDCL
21. Uttar Pradesh 17. Nesamoney
SRTC TCL
18. Orissa State
Comm. TCL
19. Orissa R.T.Co.
Ltd.
20. Pandiyan
Roadways CL
21. Pattukkuttai
Ash. TCL
22. Pallavan TCL
23. Rani
Mangammal
TCL
24. Tamil Nadu
Goods TCL
25. Tamil Nadu
Tourism
Development
Corpon. Ltd.
26. Thanthai Periyar
TCL
27. Thiruvalluvar
TCL
1.5 IMPORTANCE OF ROAD TRANSPORT
• • 17
(i) Road transport plays an important role in the overall economic development of
the country by transporting material, goods, agricultural product etc. and makes
the equal distribution in all geographical areas.
(ii) Connects small villages at remote places where other transport means the not
feasible.
(iii) For public transportation within the big cities road transport is the most feasible.
(iv) Industrial development of all geographical areas becomes possible due to road
transport.
(v) It is relatively cheaper mode of transport as compared to other modes of
transport.
(vi) It is a flexible mode of transport 111 the sense of change of routes as per
convel1lence.
(vii) It helps people to travel and carry goods at shorter and longer distance as well as
in remote areas and hilly areas.
(viii) It helps in creation of employment to a large extent for individuals having
technical as well as non technical skills.
(ix) It contributes in living standard of the people in tenns of speedy and comfortable
journey by taking the advantage of development in technology.
1.6 HISTORY OF AMTS AND ITS ORGANIZATION
The Ahmedabad Municipal Transport Service (AMTS) functioning under the
Ahmedabad Municipal Corporation (AMC), is responsible for providing the public
transportation system in the city. The responsibility of providing inter-city stage
operations lies with Gujarat State Road Transport Corporation (GSRTC).
AMTS came into existence on 1 st April 1947 as a voluntary organization with a fleet of
112 buses when the Municipal administration declared nationalization of the private
companies that were playing buses in the city. The AMTS was established under the
provision of Bombay Provisional Municipal Act, 1949, which functions as one of the
main wings of the corporation. It was the first nationalized public transport service in
India. At the time of commencement of AMTS the geographical area of the city of
Ahmedabad was only 15 kms. This organization has completed 62 years of service on
3 1 sl March 2009.
18
The organization is under the administrative control of a statutory committee VlZ.
Transport Committee formed by General Board of AMC. However, the financial control
lies with the General Board of the AMC. The AMTS has no capital base and AMC is
providing financial assistance to AMTS, on requirement basis, in the fonn of an interest
- bearing loans. The transport committee comprises of nine members, including
chairman, drawn from various fields, One of then being AMC's standing committee
chairn1an. These members need not necessarily be elected Municipal corporate.
Transport Manager who exercises all administrative and operational powers under the
control and supervision of Transport Committee heads the administration of AMTS. The
transport manager, however, is not a member of transport committee.
1.7 SELECTION OF RESEARCH PROBLEM
Ahmedabad Municipal Transport Service (AMTS) came into existence on 1st April 1947
as a voluntary organization. It was the first nationalized public transport service in India.
During this period City'S Municipality limit was 15 km. AMTS serve the citizen for
transportation purpose. This organization has completed 62 years of service on 31 st
March 2009.
Ahmedabad Municipal Transport Service (AMTS) is owned by the local body i.e.
Ahmedabad Municipal Corporation (AMC). AMTS is the second largest city public road
transport service in India after BEST in Mumbai. AMTS has made its best efforts to
provide services to all parts of the city of Ahmedabad and in surrounding areas also. But
to keep any service regular, customer oriented, modernized and well equipped, the
regular capital investment is required. Also the recurring expenses keep on increase with
the development of services. Any public service oriented unit carmot service perpetually
by depending only on Govemment grants. The unit has to stand financially on its own by
adopting corporate governance even without the objective of profit maximization. The
AMTS has failed to achieve the objective of modernizing its services by making the unit
financially sound. Even without any much development and modernization it makes
continuous loss for more than fast 10 years. Some steps might have been taken by the
management because despite of heavy loss it is surviving and not only that but some
concrete steps are also taken by the authorities like introducing private buses on the road,
controlling population and a big project of BRTS involving huge amount of investment
of 500 crores.
19
Looking to the fact of surviving with the loss and making an effort to bring turnaround in
the management of AMTS, becomes an interesting case of research from the view point
of turnaround management. The reconstruction of AMTS may become a lesson for other
public administration also.
1.8 SCOPE OF THE STUDY
The study undertaken is for analyzing the performance and turnaround strategy adopted
by AMTS only. To study the objectives financial and non financial information of 7
years from 2001-02 to 2007-08 will be studied. The study is also aimed at analyzing
financial performance as well as non financial decision making governance affecting the
functioning of the AMTS. The study also includes the major turnaround decision of
modernizing the bus and road services by introducing BRTS.
1.9 OBJECTIVES
The objectives of the study are outlined below:
I. To study the operational performance of AMTS.
2. To study the financial performance of AMTS.
3. To study the problems faced by AMTS in its operation.
4. To study the process of turnaround management.
5. To analyze the overall performance and suggest ways and means to uplift the
functioning of AMTS.
1.10 LIMITATIONS OF THE STUDY
Every study has its own strength and weaknesses. But it is the fact that every research
opens new doors for further study. Therefore the limitations of every study becomes the
beginning of another study in the same area. Thus limitations make the process of
research ongoing.
The present study has attempted to analyse the public transport undertaking, financial
position, performance in a specific of Ahmedabad Muncipal Transport Services. The
present study was largely concerned with the public level undertakings with the
investment of the government or local body. However once an undertaking develop it
diversity itself and expands both horizontally and vertically. The present study has
following limitations:
20
1. The study is limited to a period of7years only (2001-02 to 2007-0
2. The researcher does not know the technical aspects of bus repairs and
maintenance, hence technical aspect of the operation of AMTS which affects its
performance is unexplored.
3. No comparison of AMTS operation and its turnaround management with other
state transport corporation service and private sector is made because it is outside
the perview of objectives of the study.
4. Lacks the human resource aspect of the AMTS and hence no personal interview
and opinion of staff and passengers are included in the study.
5. The study does not evaluate the contribution of AMTS towards usefulness to the
society as welfare service.
The present study analysis the turnaround management of AMTS, i.e. only one unit of
city transport in the city of Ahmedabad. In India there are other big cities also having
city transport like Mumbai, Kolkata, Delhi, Chennai and inter comparison of all such
cities may make the study on large scale, which is not covered by the present study. The
study also ignores the analysis and comparison with state undertaking. The performance
of AMTS is studied only on the basis of last seven years only. Hence the analysis and
recommendations are based on the study of the selected period only. The operating
efficiency of any transport undertaking is based on many technical and engineering
aspects also. Such technical aspects are ignored by the present study. All such limitations
of the study can be taken by other scholars for further research.
1.11 CONTRIBUTION
The present study will be help to different parties rel~ated to research, education and
operation. The contribution of the study can be enumerated as follows:
(i) The study will be helpful to research scholars to further investigate into the area
of public road transport.
(ii) The study will be useful to academicians to make the present curriculum broader
by incorporating the present research done in the area of strategic management
and logistic management.
(iii) The present research on AMTS will be helpful to AMTS authorities to introspect
their decision relating to the management and operation of AMTS to make the
21
turnaround management more meaningful by utilizing their resources in
maximum possible manner.
(iv) The study also will be helpful to other city transport undertakings to incorporate
the turn-around strategy adopted by AMTS and findings and suggestions of the
present study wherever it is feasible.
(v) Quoting authorities to public under taking will be able frame their granting
policies and utilization of their funds for the welfare of people.
J.l2 CHAPTER PLAN
The entire study of turnaround strategy of AMTS is divided into nine chapters.
1. The first chapter gives brief information about the importance of public transport,
evolution of road transport, history of AMTS and brief area of the study.
2. The second chapter throw light on the literature survey done during the course of
the study on the research area.
3. Chapter three discuses the research methodology.
4. Forth chapter discusses role of strategic management and turnaround
management in service industry
5. Fifth chapter reviews the services of AMTS.
6. Chapter six makes the analysis of operational performance.
7. Seven chapter reviews the financial performance of AMTS
8. Eight chapter discusses the turnaround strategy of AMTS.
9. Evaluates of over all performance
10. Last chapter tenth makes the findings and suggestions