BENGALURU: To boost its revenue, Karnataka State Road Transport Corporation (KSRTC) forayed into cargo business with 20 trucks in December last.
The corporation’s target was to generate Rs 100 crore annual revenue by 2025. It had planned to add 100 trucks soon after the launch and induct 500 more in a year. However, the corporation is struggling to make a mark in the business with tough competition from private players.
A top KSRTC official said, “We started Namma Cargo services in 2021 using corporation buses. We witnessed a good growth initially and recorded Rs 10 crore revenue. Further, we conducted a study of cargo services successfully run by Andhra Pradesh Road Transport Corporation, which is earning more than Rs 150 crore. We ventured into this business with 20 trucks fitted with GPS, with a capacity to carry six tonnes.”
However, the plan did not take off as desired. Of the 20 trucks, the corporation is now using 14 to transport spare parts and other goods. “We were earlier using old buses to transport these goods. The cargo sector is highly competitive with many private players operating round-the-clock,” the official said.
“One of the reasons for our venture not picking up as expected is we don’t have goods loaders and unloaders. Also, we have to map various clusters — fruits, vegetables, textiles and others. We have to match the services provided by the private players and convince the cluster heads to shift to our cargo services. All these will take time,” the official said.
KSRTC MD Anbu Kumar said the corporation is exploring all options to improve its cargo business and talks have been held with various clusters. He expressed confidence that the corporation’s cargo business will pick up in the coming months.
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