More than two years after launching 'Namma Cargo' (Our Cargo) using its buses, Karnataka State Road Transport Corporation (KSRTC) is now expanding its freight business.
The KSRTC, on December 23, inducted 20 GPS-fitted trucks into Namma Cargo and signed an MoU with two private firms for freight transportation.
KSRTC managing director V Anbukumar told Moneycontrol that they aim to achieve Rs 100 crore in annual revenue from the cargo business by 2025.
"When we started Namma Cargo in 2021, revenue was only Rs 10 crore, and now it has increased to Rs 25 crore. We have been using our buses for cargo transport but now we inducted dedicated trucks"
Transport Minister Ramalinga Reddy, who unveiled the trucks, said that the number of trucks would be increased to 500 in a year.
Anbukumar said that the service is available in Bengaluru, Mysuru, Tumakuru, Hassan, Mangaluru, Shivamogga, Chikkamagaluru, Kolar and Davanagere
"We have studied the cargo model in the Andhra Pradesh State Road Transport Corporation, which generates around Rs 150 crore a year. There is a lot of potential for the cargo business, especially when KSRTC has already made a mark in passenger transportation. The dedicated trucks will transport goods throughout Karnataka, ensuring secure, faster, and reliable services. We also have a strong network, trusted manpower, and tracking facility"," said Anbukumar.
Trucks, each with a six-tonne capacity, will transport freight such as fruits, vegetables, textiles, and pharmaceuticals.
"Government departments also require these trucks for goods transportation. We can offer much more competitive rates to government departments than private players," said Anbukumar.
KSRTC will offer transportation services to interested firms by entering into an MoU. The rates are Rs 50 per Km for 1-100 Km, Rs 40 per Km for 1-200 km, and Rs 35 per Km for distances above 200 km.
Regarding the shortage of drivers, Reddy said, "Our drivers will drive these trucks. We are also planning to recruit drivers. If required, we will recruit them on a contract basis."
Also read: Karnataka wins legal tussle against Kerala over the use of 'KSRTC'
Cargo terminal at Peenya
Reddy said that they will convert the unused Rs 40-crore Basaveshwara bus terminal at Peenya into a cargo terminal.
"Peenya bus terminal is now unused because of poor accessibility. It will be converted into a cargo depot. Some government departments have also shown interest." said Reddy.
He said that earlier they had planned to shift north Karnataka buses there. "We had shifted some buses from Majestic there on a pilot basis, but there were no takers from passengers because of poor accessibility".
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
