<p>The recent commencement of east-west corridor of Namma Metro, the rapid mass transit rail system in Bengaluru, has fuelled the age old debate amongst its citizens – mass transit or personal transit? <br /><br />For a generation of Kannadigas, who were born in the city, have had their upbringing here and lived through the nightmares of city’s poor transportation system of the bygone century, the answer is quite easy. Personal transit always scores over mass transit. <br /><br />Not so for nouveau Bengalureans who have moved into the city this century – the IT/BT employees who own four wheelers, migrants from other parts of the country who are in possession of two wheelers and the new breed of neo-middle class who use other modes of transport like an auto or the recently introduced app-based taxi services – the answer to switch to “Namma Metro” is not going to be that easy. <br /><br />These citizens have grown with a Bengaluru Metropolitan Transport Corporation (BMTC) that provides quite an exceptional service and reaches most corners of the city. There are autos that provide 24X7 service and have been available in their neighbourhood. Then there is the recent craze of app-based taxi services that offers comfort and is priced competitively. <br /><br />The exponential increase of private vehicles in the city over the last two decades suggests that they have preferred personal transit over public transport. Hence, there will be a big question mark over whether they can be persuaded to start using Namma Metro service. <br /><br />Unfortunately, it has never be-en that simple. Neither has the rapid mass transit systems been cost effective nor has it been easy to attract customers. Investments do not fetch returns beca-use of cost overruns and all tra-nsport systems in a city compete for the same customer. They are unable to convert citizens who use alternate mode of transport to use mass transit system. <br /><br />Other benefits like decongesting traffic or reducing pollution, mostly a hype to begin with, do not materialise in the long run. Hence, mass transit system in most countries requires a modest subsidy to one that can materially affect government finances. <br /><br />In New York, cars and trucks that pass through the bridges and tunnels to enter New York City provides part subsidy to the local rail transport system. When toll collection falls short, the city government provides for the operating costs. In Singapore, Electronic Road Pricing (ERP) has been effectively used by the government to fleece car travellers in order to subsidise the local mass transit system. <br /><br />In London, the tube system as it is called, is subsidised by the local government through congestion charges imposed on cars and other vehicles. London has also tried to make other modes of transport expensive in order to bait citizens into using mass transit system. In Tokyo, the intra-city rail system despite its popularity and high ridership, is subsidised by the inter-city “Shinkansen” high speed rail customers. <br /><br />Modes of transport<br />Many other cities follow similar strategies – either make other modes of transport very expensive or impose charges on four wheel owners to subsidise their mass transit systems. Unfortunately, such measures are unlikely to succeed in Bengaluru. <br /><br />According to estimates of the Bangalore Metro Rail Corporation Limited (BMRCL) officials, once the north-south corridor is completed, Namma Metro service is expected to ferry 10 lakh passengers. Assuming an average price of Rs 25 per passenger, the service can be expected to garner revenue of close to Rs 1,000 crore. <br /><br />From the publicly available estimates, the two corridors together would have cost the taxpayers close to Rs 18,000 crore with borrowings of about Rs 9,000 crore. Even though most of the borrowings are low cost loans from development institutions, servicing them will likely shave of half of the revenues of Namma Metro. Hence, it will be in a wait and watch mode before either fares go up or the state government decides to subsidise the service. <br /><br />Over the last two decades, the BMTC has made enormous strides in providing a good transport system to citizens. It is a symbol of efficiency amongst the mostly non-functioning state public sector units. The buses are new with an average life span of just seven years and has come a long way in both frequency as well as reach. It is also profitable and would be a travesty if bus passengers are asked to subsidise Namma Metro. <br /><br />Moreover, the elite have started demanding a high speed rail link to the international airport and there is a proposal in the offing for another line between K R Puram and Silk Board Junction. If more money is invested to add further capacity to curr-ent network, it will surely not be good news for state taxpayers. <br /><br />Ultimately, for any new transit system to be sustainable and operate without a subsidy, it has to get new customers or switch people from personal transit. Even if Namma Metro is world class, the pertinent question to be asked is – are people willing to switch from personal transit to mass transit? Bengaluru may not know the answer for another decade.<br /><br />(The writer is a Bengaluru-based money manager)<br /></p>
<p>The recent commencement of east-west corridor of Namma Metro, the rapid mass transit rail system in Bengaluru, has fuelled the age old debate amongst its citizens – mass transit or personal transit? <br /><br />For a generation of Kannadigas, who were born in the city, have had their upbringing here and lived through the nightmares of city’s poor transportation system of the bygone century, the answer is quite easy. Personal transit always scores over mass transit. <br /><br />Not so for nouveau Bengalureans who have moved into the city this century – the IT/BT employees who own four wheelers, migrants from other parts of the country who are in possession of two wheelers and the new breed of neo-middle class who use other modes of transport like an auto or the recently introduced app-based taxi services – the answer to switch to “Namma Metro” is not going to be that easy. <br /><br />These citizens have grown with a Bengaluru Metropolitan Transport Corporation (BMTC) that provides quite an exceptional service and reaches most corners of the city. There are autos that provide 24X7 service and have been available in their neighbourhood. Then there is the recent craze of app-based taxi services that offers comfort and is priced competitively. <br /><br />The exponential increase of private vehicles in the city over the last two decades suggests that they have preferred personal transit over public transport. Hence, there will be a big question mark over whether they can be persuaded to start using Namma Metro service. <br /><br />Unfortunately, it has never be-en that simple. Neither has the rapid mass transit systems been cost effective nor has it been easy to attract customers. Investments do not fetch returns beca-use of cost overruns and all tra-nsport systems in a city compete for the same customer. They are unable to convert citizens who use alternate mode of transport to use mass transit system. <br /><br />Other benefits like decongesting traffic or reducing pollution, mostly a hype to begin with, do not materialise in the long run. Hence, mass transit system in most countries requires a modest subsidy to one that can materially affect government finances. <br /><br />In New York, cars and trucks that pass through the bridges and tunnels to enter New York City provides part subsidy to the local rail transport system. When toll collection falls short, the city government provides for the operating costs. In Singapore, Electronic Road Pricing (ERP) has been effectively used by the government to fleece car travellers in order to subsidise the local mass transit system. <br /><br />In London, the tube system as it is called, is subsidised by the local government through congestion charges imposed on cars and other vehicles. London has also tried to make other modes of transport expensive in order to bait citizens into using mass transit system. In Tokyo, the intra-city rail system despite its popularity and high ridership, is subsidised by the inter-city “Shinkansen” high speed rail customers. <br /><br />Modes of transport<br />Many other cities follow similar strategies – either make other modes of transport very expensive or impose charges on four wheel owners to subsidise their mass transit systems. Unfortunately, such measures are unlikely to succeed in Bengaluru. <br /><br />According to estimates of the Bangalore Metro Rail Corporation Limited (BMRCL) officials, once the north-south corridor is completed, Namma Metro service is expected to ferry 10 lakh passengers. Assuming an average price of Rs 25 per passenger, the service can be expected to garner revenue of close to Rs 1,000 crore. <br /><br />From the publicly available estimates, the two corridors together would have cost the taxpayers close to Rs 18,000 crore with borrowings of about Rs 9,000 crore. Even though most of the borrowings are low cost loans from development institutions, servicing them will likely shave of half of the revenues of Namma Metro. Hence, it will be in a wait and watch mode before either fares go up or the state government decides to subsidise the service. <br /><br />Over the last two decades, the BMTC has made enormous strides in providing a good transport system to citizens. It is a symbol of efficiency amongst the mostly non-functioning state public sector units. The buses are new with an average life span of just seven years and has come a long way in both frequency as well as reach. It is also profitable and would be a travesty if bus passengers are asked to subsidise Namma Metro. <br /><br />Moreover, the elite have started demanding a high speed rail link to the international airport and there is a proposal in the offing for another line between K R Puram and Silk Board Junction. If more money is invested to add further capacity to curr-ent network, it will surely not be good news for state taxpayers. <br /><br />Ultimately, for any new transit system to be sustainable and operate without a subsidy, it has to get new customers or switch people from personal transit. Even if Namma Metro is world class, the pertinent question to be asked is – are people willing to switch from personal transit to mass transit? Bengaluru may not know the answer for another decade.<br /><br />(The writer is a Bengaluru-based money manager)<br /></p>
