[deepclutch]

MC Road Route Touches many Small Towns in Kerala and I thought that Route is Profitable.and Mahindra-Navistar/Scania/Force-MAN are My Guesses regarding New Bus

[hellstar]

Originally Posted by deepclutch

MC Road Route Touches many Small Towns in Kerala and I thought that Route is Profitable.and Mahindra-Navistar/Scania/Force-MAN are My Guesses regarding New Bus

no profitable on this route with big buses, too many curves and undulations, these buses i believe are not cost efficient in this matter.

[binaiks]

Originally Posted by gold class

Dont worry... u people would really love traveling in the new coach.... n comfort inside is more than a Volvo....

Then has to be the over-rated Merc bus - or the Swaraj Isuzu. A company recently launched Guruvayur-Bangalore using Isuzu buses. I heard Isuzu has received some "bulk" orders - I guess that means an operator operating black coloured volvos

[teamveevee]

Originally Posted by gold class

Am not directly associated... but have a good relation with them..lemme remain in the dark side.. hmmmm. The Volvo in kanjirapally route was first introduced in 2008 April n then in 2009 April... both instances it had just operated for nearly 2 months.. Wat i found in talking with customers of that route was they don't prefer A/C...mostly everyone used to get kindaa dizziness in moving up the ghat section with closed windows...So they opt for non A/C..SPS n SC.. and the other reason is the avg was around 8-10 seats except week ends which wont work out...and last season one of the buses met with an accident nr toppur.... so they were running short of a bus and was forced to stop mundakkayam -pala route...

And abt the new intro.. its not Sleeper... SHAMA have sleeper Volvo running in Velankanni route... (Non A/C Volvo--removed the A/C unit) temporarily stopped for re-body works.. Dont worry... u people would really love traveling in the new coach.... n comfort inside is more than a Volvo....

I think what they need is a feeder service [ A tempo traveller ] from these locations to Kottayam/Muvattupuzha.
Since you say more than Volvo, right now there is only bus which is more "expensive" than volvo, ie Merc (not sure about comfort, i have not travelled in Merc in india).

[teamveevee]

Originally Posted by deepclutch

MC Road Route Touches many Small Towns in Kerala and I thought that Route is Profitable.and Mahindra-Navistar/Scania/Force-MAN are My Guesses regarding New Bus

Deepcluch, you missed the ones available right now, Cerita (KingLong), Merc.
I heard Cerita recently got orders from some tourist bus operator(s).

[gold class]

I just can't imagine the amount of profits that can be made on these routes by these operators.

Volvo s can be profitable only on long runs, might be 3-4 years.
lemme just tell you guys about the tax and other expenses in operating the buses.

This is for a 41 semi sleeper Volvo

KA tax 1,20,000 For 3 months or 1 quarter(4 quarters=1 year)

TN tax 41410 / month. In TN tax is collected monthly.

KL tax 69500 For 3 months + 1000 as mamool per bus per month to pass check post with out delay...(even they give slips for that... shame on KL Govt officials @ check posts)

Diesel for mark II Volvo for TVM -BLR nearly 575-600 Ltrs = nearly 21000

driver n cleaner bata 1900+350

toll- 1024

around 2500 will be charged by the flying squad in TN /KL for a company per month, just by filing a simple case like, no reflector, driver not in uniform.etc etc.

maintenance: You guys know Volvo spare parts cost like hell. 1 ltr of engine oil cost nr 275 rs, the front glass cost 45000+5000 for beading, mirror 23000. the set of belts(engine belt, fan belt a/c belt) cost nearly 26000. In mark II coaches you must have noticed the retarder lever near driver, that stick set cost around 17000. The Tyre, a set of tubeless(2 nos- Michelin/ bridgestone) cost around 18 or19 k and it goes on.


And another fact is knowing all this the KERALA SRTC sold the first batch of their two volvo s at a price that you guys wont believe. it was kept for auction and the guy who had the auction couldn't pay the money, so it was again quoted for a lower amount and SHAMA brought it. Now its all in to scraps at thier garage and other spares are used on their buses.

[Spitfire]

Originally Posted by gold class

I just can't imagine the amount of profits that can be made on these routes by these operators.

So all bus operators are running in losses and still in the business as social service to the nation?

You have only listed the costs for a route. What about rent for office premises, parking charges and salaries for support staff?

We know the owner of a major operator from Goa, now aligned with a operator based from South.

I understand what goes and what are the profits being reaped by these operators.

Also you forgot about the money paid to government officials to run these buses on what they call the routes where the goose lays the golden eggs forever.

[binoyb22]

I just can't imagine the amount of profits that can be made on these routes by these operators.


As splitfire said they are not here to do social service.fact is that they are making big money.
I just booked KSRTC volvo from bangalore to cochin and it just cost me 560rs.If it was the private volvo it would have been 750.almost 200rs extra.

Maintenance and running cost of volvo bus still remains the same if its private or govt owned ,rite..gold class??

[coolclouds]

Originally Posted by binoyb22

As splitfire said they are not here to do social service.fact is that they are making big money.
I just booked KSRTC volvo from bangalore to cochin and it just cost me 560rs.If it was the private volvo it would have been 750.almost 200rs extra.

Maintenance and running cost of volvo bus still remains the same if its private or govt owned ,rite..gold class??

They are charging Rs. 900 for a ticket on multi axle Volvo from Kochi to Bangalore and Rs. 950 from TVM.

On a rough calculation,
44seats X Rs. 950 X 30 days = 12,54,000
On an average of 60% occupancy, they are getting at least 7,52,400+misc. luggage income/month. As long as they are ordering new new buses, I don't think they are in loss.

Another interesting thing is that not a single(?) daily service bus to Kerala from Bangalore has a KL registration. Most/all of them are KA and very few of them are TN. In many routes, they do less than 40kms (towards Hosur) a day in Karnataka.

Is there any specific reason for that?

[Spitfire]

Originally Posted by coolclouds

Is there any specific reason for that?

The RTO and government in Karnataka has always been downright corrupt compared to the one's in Kerala. In Kerala you always have to be concerned about a morcha being taken out incase you get caught.

[pypkmsrikanth]

Originally Posted by coolclouds

Another interesting thing is that not a single(?) daily service bus to Kerala from Bangalore has a KL registration. Most/all of them are KA and very few of them are TN. In many routes, they do less than 40kms (towards Hosur) a day in Karnataka.

Is there any specific reason for that?

This is the same with buses plying into Karnataka from Tamil Nadu, Andhra Pradesh etc. I read somewhere that the taxes for non KA registration buses are very high as compared to similar taxes for Non KL registered buses or Non TN registered buses etc.

[gold class]

Originally Posted by binoyb22

I just can't imagine the amount of profits that can be made on these routes by these operators.


As splitfire said they are not here to do social service.fact is that they are making big money.
I just booked KSRTC volvo from bangalore to cochin and it just cost me 560rs.If it was the private volvo it would have been 750.almost 200rs extra.

Maintenance and running cost of volvo bus still remains the same if its private or govt owned ,rite..gold class??

I didn't mean to say that they do it as social service...they do make profit..but they do have loss... consider KL - BLR route.. except week ends the other days buses goes on avg of 15-20 seats at the max... so for the rest 20 seats tax s being paid is waste !!!
just think this route TVM- BLR

KPN- 2 Volvo s- 96 seats(1 via marthandam)
kallada -1 Volvo- 41 seats
sofialines- 1 Volvo- 48 seats
srm -1 Volvo -48 seats
shama -1 Volvo -45 seats

total of 6 Volvo s operate in the same sector with 278 seats in total.. apart from 2 KSRTC Volvo and 1 KER SRTC... so it comes up to nearly 350 seats /day and about 200 will be filled up on weekdays...All the operators have other business and they operate buses as some side business..

Volvo still remains the same... but the KSRTC is on a contract with Volvo.. i don't know the exact amount.. its some thing like 1 rs /km or some thing like that... Due to this contract the Volvo company provides company maintenence for all KSRTC Volvo buses and also it is bcos of this contract KSRTC introduces new buses in every route ;the old one being just one or two years old.. and the other thing is that the tax amount is very much less bcos of the interstate route regulations -decided between the state govt... and even toll they have got discounts..

[binaiks]

Originally Posted by coolclouds

Another interesting thing is that not a single(?) daily service bus to Kerala from Bangalore has a KL registration. Most/all of them are KA and very few of them are TN. In many routes, they do less than 40kms (towards Hosur) a day in Karnataka.

Is there any specific reason for that?

Based on a short conversation with a person associated with bus operations, the reason behind KA registration is taxation. Non KA vehicles are charged exhorbitant entry/road taxes for each visit. Although the road tax paid for the vehicle is higher in KA than any other state, the travel companies find registering the vehicle in KA cheaper - since they need not pay for each entry. Another reason is that KA registered buses are NOT checked at entry points (into Karnataka) - an inspection would mean more bribe

Originally Posted by gold class

I didn't mean to say that they do it as social service...they do make profit..but they do have loss... consider KL - BLR route.. except week ends the other days buses goes on avg of 15-20 seats at the max... so for the rest 20 seats tax s being paid is waste !!!

You mean to say the operators are providing a "service" by operating those 15-20 seats?

Don't these very same operators carry more baggage in their underbellies and overhead racks (in case of non-AC buses) than the amount they are legally permitted? Under Contract Carriage/Tourist Permit rules, these buses are supposed to have only the baggage of the passengers travelling by the bus. These operators carry so much luggage, that passengers are often denied space to keep their luggage.

I have personally seen enough luggage to fill a truck being unloaded from a Shama Gold Class. So, do you still intend to say these buses run on loss?

Originally Posted by gold class

like that... Due to this contract the Volvo company provides company maintenence for all KSRTC Volvo buses and also it is bcos of this contract KSRTC introduces new buses in every route ;the old one being just one or two years old.. and the other thing is that the tax amount is very much

Volvo only provides maintenance - they do not provide buses for free. So the case of KaSRTC prematurely changing their buses due to Volvo maintenance does not arise at all. KaSRTC runs a set of buses for atleast 3-4 years on long interstate routes and then run those buses in short routes.

Under Inter-state transport agreements, state governments NEED NOT pay tax to the other state at all - provided both states have equal running 'allowance'. In short, Karnataka need not pay any tax to Kerala for operating interstate services to Kerala. However, TN charges a "royalty" on a per kilometre basis, for buses not terminating in the state.

[deepclutch]

Originally Posted by hellstar

no profitable on this route with big buses, too many curves and undulations, these buses i believe are not cost efficient in this matter.

Yes.Indeed.But ,this Route along with eastern towns like thodupuzha, pala,kanjirappilly are the starting points of many services.I hope the MC Road Be Made NH Along With Kottayam-Perumbavoor Road via Kaduthuruthy-Piravom-Peruvammoozhy,Vengola-Allapra-Perumbavoor which Bypasses the Ghat Sections between Ettumanoor and Muvattupuzha.

[teamveevee]

Originally Posted by coolclouds

They are charging Rs. 900 for a ticket on multi axle Volvo from Kochi to Bangalore and Rs. 950 from TVM.

On a rough calculation,
44seats X Rs. 950 X 30 days = 12,54,000
On an average of 60% occupancy, they are getting at least 7,52,400+misc. luggage income/month. As long as they are ordering new new buses, I don't think they are in loss.

Another interesting thing is that not a single(?) daily service bus to Kerala from Bangalore has a KL registration. Most/all of them are KA and very few of them are TN. In many routes, they do less than 40kms (towards Hosur) a day in Karnataka.

Is there any specific reason for that?

How much profit do you think they will make after all expenses? After all expenses including salaries for staff/support staff/maintenance etc. How many years it will take to recover the investment of 90 Lakh for the bus.
[If they auction, the bus in 2 years, let us substract the auction value from 90-Lakh, Still!]. Do you think it will be profitable for KerSRTC? I really doubt. But KerSRTC is making huge losses per month, it does not matter.

The same with Private Operators also. But if they could transport items such as Spirit from KA, it is worth the investment. Also for the private operators, it is a prestige to operate the Volvos. Eventhough they loose money in Volvos, they make money with non-volvo services. Also these Volvo operators could charge slighly more for the non-volvo services becuase of the good will they get by operating Volvos.

Can you name an operator who is business for more than 3 years by running just Volvos?