INTERCITY BUS TRANSPORTATION MAHMUD HASAN NAHID, BONNY ADLINA D’ CRUZ, ASIK MOHAMMAD SAGAR, and MOHSENA HASSAN (Group 07)
BRAC Business School, MBA, BRAC University, Bangladesh (December 11, 2011)
EXECUTIVE SUMMARY
INTRODUCTION The development of the concept of intercity bus service, which began in the United States in the early 20th century, provided a new means of transport bet between ween citi cities es in Nort North h Ameri meric ca. A bus is a road road veh vehicle icle desig esigne ned d to carry passengers. Buses can have a capacity as high as 300 passengers. The most most common common type type of bus is the single single-dec -decker ker bus, bus, with larger loads loads carried carried by double-decker buses and articulated buses, and smaller loads carried by midi buse buses s and and minib minibus uses es;; coac coaches hes are are us used ed for long longer er dis dista tanc nce e servi service ces. s. Bu Bus s manufacturing is increasingly globalised, with the same design appearing around the world. Buses may be used for scheduled led bus transport, scheduled coach transp transport ort,, school school transp transport ort,, private private hire, hire, touris tourism; m; promot promotion ional al buses buses may be used for political campaigns and others are privately operated for a wide range of purposes. Intercity Bus Transportation is essential for people everywhere. It is not only the part business, jobs, export, import also it i t is important for school transport, health iss issues, ues, touri ouris sm and and so on. on. Ther There efore fore,, we have have selec electe ted d int interc ercity ity bus transportation as our group project and try to find out how consumers evaluate different brands of intercity buses.
OBJECTIVE OF THE STUDY The objective of the study is to:
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Increase the operational efficiency of selected intercity bus services in Bangladesh.
2. Increase the operational efficiency of intercity bus services in Bangladesh to reduce the road accidents in Bangladesh.
OVERVIEW OF SELECTED BUS SERVICE PROVIDERS Overview of Grehound, BRTC, Shohagh Paribahan Ltd, and Greenline Paribahan Ltd that we select for our project. This overview will help you to understand the nature of different bus service providers in Bangladesh and as well as, in USA.
GREYHOUND LINES INC. Founded in 1914, Greyhound Lines, Inc. is the largest provider of intercity bus transportation, serving more than 2,300 destinations with 13,000 daily departures across North America. It has become an American icon, providing safe, enjoyable and affordable travel to nearly 25 million passengers each year. The Greyhound running dog is one of the most-recognized brands in the world. While Greyhound is well known for its regularly scheduled passenger service, the company also provides a number of other services for its customers. Greyhound PackageXpress service offers value-priced same-day and early-nextday package delivery to thousands of destinations. And the company's Greyhound Travel Services unit offers charter packages for businesses, conventions, schools and other groups at competitive rates. Greyhound has three operating subsidiaries in the United States, which are a part of the nationwide Greyhound network. They include: Valley Transit Company, serving the Texas-Mexico border, Crucero USA, serving southern California and Arizona into Mexico, and Americanos USA, serving points in Mexico from Texas and New Mexico. In addition, Greyhound has inter line partnerships with a number of independent bus lines across the United States. These bus companies provide complementary service to Greyhound Lines' existing schedules and link to many of the smaller towns in Greyhound Lines' national route system. Amtrak passengers use Greyhound to make connections to cities not served by rail on Amtrak Thruway service, by purchasing a ticket for the bus connection from Amtrak in conjunction with the purchase of their rail ticket. If passengers desire, they may also buy a bus ticket directly from Greyhound. For travel within Canada, Greyhound Canada carries millions of passengers across the country's provinces and territories each year. The company also provides Greyhound Courier Express package delivery service to its various Canadian locations. For those within Mexico who wish to travel by Greyhound in the United States, Greyhound subsidiary Greyhound de Mexico can sell Greyhound tickets at one of more than 100 agencies located throughout Mexico.
BANGLADESH ROAD TRANSPORT CORPORATION (BRTC) Now BRTC using touch screen monitor to book tickets only over the counter. This touch screen monitor has built in software module that help to count how many tickets are available to sell, like a manual calculator. BRTC using this touch screen monitor at their all counters in Dhaka City. In addition, BRTC maintain all their counter activities through the wireless or cordless telephone. Bangladesh Road Transport Corporation is a Body Corporate having perpetual succession and a common seal with an authorized capital of Taka.1000.00 million (Tk. 1.00 = US $ .014); having its main office at 21, Rajuk Avenue, Dhaka1000 along with 7 Depots, 2 Workshops, 5 Training institutes in greater Dhaka and 9 Depots/offices, 12 Training Institutes situated in other 6 Divisions (administrative regions) of Bangladesh. The objectives of BRTC are as follows: • •
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To operate road transport services for both passengers and cargo. To provide safe, reliable and efficient transport service at an affordable fare. To facilitate private sector in transport service and introduction of new routes. To play strategic interventional role at the time of emergency. To promote tourism. To provide training facilities for Drivers, Mechanics and in transport management in order to develop skilled manpower in the road transport sector for both home and abroad. To utilize BRTC's land and properties for additional revenue earnings for subsidizing the unprofitable bus routes and services for disabled, women's, students, government employees, poor and destitute etc. To contract out and sub-contract the buses to the able private owners so as to promote competition for quality services and co-existence of the public-private relationship in the road transport sector for greater private sector participation in the operation of BRTC buses. To research vehicle and engine types and safety considerations for bringing harmony in operation of the bus and truck services and to combat the air pollution's factor for better environment.
One of the significant objectives of BRTC is to provide training facilities for drivers and mechanics in order to develop skilled manpower in the transport sector for both home and abroad. BRTC, on its part, provides comprehensive institutional training to the trainees. It is obvious that the drivers trainees intend to get their driving license as soon as possible after the completion of their training period. For this reason, BRTC has introduced one stop service.
As a part of building “Digital Bangladesh”, BRTC has already introduced Electronic Ticketing System in its City service in Dhaka and has a future plan to extend this effort in other big cities of the country. As an annex to this system, electronic inside device and electronic handy device in the city buses with the introduction of FELICA multipurpose Smart card has already introduced which has ushered a new era in transport system in Bangladesh.
SHOHAGH PARIBAHAN (PVT) LTD Shohagh Paribahan has about 300 AC and NON-AC buses. Shohagh has own IT department using Free Wave software to manage their ticketing and hotel reservations for customers. Shohagh also recruit IT employees on the basis of their demand. -said an IT executive: Mr. Lawrance. Shohagh Paribahan (Pvt.) Ltd. was establishment in 1973. The company is the Pioneer of the inter district luxury bus transport service provider and also represents country’s largest modern, luxury Air condition & and non air condition bus transport service provider under wide range communication network and achieved a sustainable breakthrough in the transport business in Bangladesh. The Company is operating their network at different place Chittagong and Khulna division. The company also extend international service up to India with comfortable luxury with most modern transport service to its customers with cheaper cost. Shohagh Paribahan (Pvt.) Ltd. is deeply committed to fulfill its customers demand and cares about consumers desire and taste. Placing emphasis on this important aspect Shohagh Paribahan has initiated a new edge of business activities by establishing a solid bridge by two way traffic between the service provider and the ultimate consumer in the present competitive business environment. There are more than 1500 employees are working to protect valued customer interest, safety, security, comfort and satisfaction.
Shohagh Paribahan Private Limited, country’s’ leading Transportation lunched ‘One Stop Travel Solution’ named ‘Shohagh Beyond’ for its customers aiming at extending service to them in a wider extent. We are ensuring ticket booking and hotel rooms’ reservation to their destinations from the prescribed places so that passengers enjoy easiest way of booking their tickets and making reservations. In this regard ‘Shohagh’ made collaboration with two hotels in Dhaka, four hotels in Cox’s Bazar and two hotels in Sylhet. All these Hotels and Shohagh Booths will
be connected together with reservation software through Internet and remain open round the clock. Passengers’ cand make Advance hotel reservation of any designated hotelfrom any Shohagh Pariah ticketing center.
Dhaka Hotel Zakaria International Rose Wood Residence Cox's Bazar • •
Hotel Sea Palace Limited Hotel Sayeman Hotel Media International Sylhet • • •
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Heritage Hotel Sylhet Inn Residential Hotel
Rules and Regulations for purchasing tickets •
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The ticket will be cancelled if the passengers fail to report at the station 15 minutes before the departure time. If necessary the authority the authority can change the seat number of the passengers.
The passengers will look after their hand luggage with care, otherwise if the luggage is lost the authority will not be liable. The passengers will be responsible for carrying any kind of illegal goods, the transport authority will not liable for that. If the passengers want to change the date of journey or cancel their ticket they will have to inform the authority of the concerned booking counter at least 12 hours before the departure time. (11 PM to 6 AM will not be calculated) The passengers will have to pay extra charge if they want to carry more than 10 KG. Goods. If the passengers want to cancel or change the date of journey. Ticket must be placed to the concerned booking counter, telephone message will not be allowed under any circumstance. Smoking is strictly prohibited in the bus.
GREENLINE PARIBAHAN LTD The company at present operates more than 60 (Sixty) AC buses. Greenline has no IT department they outsource it. Mr. Munir now in-charge of Greeline IT department. He appointed as contractual basis. Mr. Munir hire employees for IT dept. if he needs. Greenline HR not recruits any employees for their IT dept. Greenline using software like networking or peer-to-peer or like intranet that developed Mr. Munir.
Green Line Paribahan is apparently a family owned transport company specializing in transportation of passenger bus services since 1990. From a humble beginning of local services, its transport system encompasses all reachable areas of Bangladesh and also beyond the border, extending to reach to Kolkata in India. They worked hard and honest, put their vision forward and explored ways and means to continuously improve passenger comfort, and as a result, able to introduce the 1st ever Air- Conditioned bus services in Bangladesh. They take pride in mentioning that their fleet of buses includes the most luxurious models of VOLVO and SCANIA Imported from Europe, which provide the ultimate in passenger comfort and safety. The company at present operates more than 60 (Sixty) buses on schedule routes employing over 200 trained staff and safely transporting over a million passengers a year.
The mission of this Company may be categorized by 3 principal activities as follows: •
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Aim for efficient services through constant development towards worldclass standards. The priorities are safety, convenience, cleanliness, modernity and punctuality on each and every journey. Create customer satisfaction and meet passenger needs. The service network must allow for ease of connections and uninterrupted nationwide travel. Implement a system of management that is both efficient and streamlined. Capitalise on the potential of employees, by building teamwork. Reduce waste and non-productivity, in the interest of quality management and to compete with the private sector.
The Vision of the organization as follows: •
To be the leader of domestic land based transport
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World-class service standards
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Efficient management
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Employing modern technologies and quality personnel
SWOT ANALYSIS SWOT analysis (alternately TOWS analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Through this SWOT analysis we can identify the strengths, limitations, opportunities, threats of our intercity bus service providers, therefore, we can write recommendations for our bus service providers. Hope they might be helpful.
BANGLADESH ROAD TRANSPORT CORPORATION (BRTC) Strength (Internal)
Weakness (Internal) - BRTC •
The top management is not
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motivated to perform at their best as there is no deadline or profit target.
Government financing Donor and international support if BRTC would like to update and/or expand IT activities. Full-fledged IT department which acquired Sony’s FeliCa Smartcard and its software. Strong HR control ensuring that employees are under pressure to carry out top management’s mandate i.e. leaving the job is usually not an option.
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Ability to call for international tender for best possible solution.
Opportunity (External) BRTC Current government’s mandate for Digital Bangladesh.
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BRTC’s train service has successfully implemented reservation through different telecom. BRTC’s bus service can learn from its different department.
The political groupings within employees create hindrances to implementing any activity that is considered mandate of a political party. Decision-makers are not able to consider integrated system i.e. the FeliCa Smartcard was acquired but other equipment and training were not provided.
Threat (External) - BRTC •
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The relevant human resources are not knowledgeable enough on technological issues especially at decision-making level.
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Change of political agenda and therefore reversal of progress made. The employee groupings might be afraid that this change might cause them to lose their jobs. General public might prefer paper ticket over electronic ticketing.
There might be other companies which also adapt Smartcard and hence general public might get introduced in using the technology. Use Microsoft NetSuite CRM+, ()
SHOHAGH PARIBAHAN (PVT) LTD
Strength (Internal) SHOHAGH •
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Full-fledged IT department to maintain intranet. 1st standing in intercity bus industry.
Weakness (Internal) SHOHAGH •
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Over 300 buses owned and 1,500 full time employees. •
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Software was internally developed using freeware.
Opportunity (External) SHOHAGH Shohag might get private banks to accept 24/7 payment through deposits like Standard Chartered Bank, HSBC, DBBL, BRAC Bank etc.
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Get discounted vehicle tracking system and software from Telecom Company that would generate report for better bus dispatch system.
Top management’s confidences have been weakened about computerizing system to enhance customer service. To hire or re-train employees to use technology might increase the cost of human resources.
Threat (External) - SHOHAGH •
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Their online booking system did not become popular and currently it is not being used.
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Use mobile commerce e.g. MobiCash to accept payment for e-ticketing and marketing campaigns i.e. discount offer etc.
Competitor might easily hack into their system (as software is based on freeware and has weak security) and disrupt usual operation. IT employees turnover might result in getting Shohag’s customized software being copied and used by competitor without permission. Employees might consider these changes threatening to their jobs and render some positions obsolete.
GREENLINE PARIBAHAN LTD Strength (Internal) GREENLINE
Weakness (Internal) - GREELINE •
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Greenline have been
The IT Consultant operates separately from the
able to identify their core business and therefore successfully outsourced their IT services to Consultant.
organization and not aware of problems faced by employees who are using the software. •
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Over 60 buses owned and 300 full time employees. Caters to niche up-class market that is willing to pay high for comfort. •
Opportunity (External) GREENLINE
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As the market segment is up-class it is more likely for the customers to be computer literate and have access to bank accounts. Using services like iWallet, through which user can pay in Taka, can be a tool for tapping higher sales from this group. Explore selling e-tickets online exclusively for Non-Resident Bangladeshi by accepting international credit cards. Get relatively economic system like UBookSystem that can be accessed online and safely manage reservation and eticketing.
The documentation or monitoring of the software is not available to Greenline. That means Greenline is bound by the consultant if the top management plans to expand or change the software.
Threat (External) - GREENLINE •
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The employees are not trained with proper background knowledge rather they learn to operate the software from peer and senior colleagues in an unstructured way.
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Death or sickness of the IT consultant may put Greenline’s information system in jeopardy due to lack of company’s involvement and documentation. IT consultant may sabotage in case the Greenline management and consultant is in disagreement. Server might crash and there might be no back up with Greenline management.
RECOMMENDATIONS Here we have to write innovative ideas for the week points to overcome for any point of three bus services and we are also recommends some technological ideas that really stop or reduce road accident in Bangladesh. Our main objective of the study is to increase the operational efficiency of selected intercity bus services in Bangladesh; as a result, we put more emphasis on how to increase operational efficiency of these three bus services.
BRTC 1. Under Dhaka division most of the road accidents take places DhakaMymensingh and Dhaka-Tangail routes. Suppose BRTC has 50 buses in these routes. BRTC can track, trace, and control speed of these 50 buses easily through Gremeenphone Vehicle Tracking System. BRTC has to pay BDT 7500 per month for each vehicles excluding vat. There will be up-to 20% discount for corporate organizations like BRTC on both the fees based on volume. So in this case, we think BRTC should take this advantage to reduce road accidents and increase operational efficiency of BRTC in order to increase the productivity. 2. We know, our website is the show window of our business. So, we recommend BRTC to upgrade their website so that they can attract more customers and it will also increase the operational efficiency of BRTC. 3. BRTC must move paper based ticketing system to server based computing system. Turning to server based computing system BRTC can reduce IT hardware & Software Cost, IT management time, Costs, and this server based computing system can decreased risk of data lose. As a result BRTC can increase their productivity. 4. As part of the current government’s mandate for Digital Bangladesh. BRTC has the opportunity to use Microsoft NetSuite CRM+. Enterprise resource planning (ERP) software—once considered a necessary commodity in the IT infrastructure—is now viewed as a strategic asset for organizations that want to remain competitive and accelerate business performance. 5. BRTC’s train service has successfully implemented reservation through different telecom. BRTC’s bus service can learn from its different department. 6. There might be other companies which also adapt Smartcard and hence general public might get introduced in using the technology.
7. Being a goverment organization BRTC’s services are not up to the mark because top management are reluctant and political grouping impede to do so. They have to mitigate the political unrest within the organization.
SHOHAGH PARIBAHAN PVT LTD 1. Shohagh Paribahan (Pvt) Ltd can come to an agreement with Grameenphone to install Vehicle Tracking System in their buses on schedule routes Dhaka-Jessore-Khulna-Dhaka. This initiative not only can save thousands of lives also increase the Shohagh Paribahan’s operational efficiency. 2. Shohagh Paribahan is one of the leading private bus service providers in Bangladesh but this bus provider maintaining a poor quality of website. They actually don’t know the importance of business website. We also recommend Shohagh Paribahan to upgrade their business website. 3. Shohagh Paribahan must move traditional IT architecture(internet based) to server based computing system, therefore, they can reduce IT hardware & Software Cost, IT management time, Costs, and this server based computing system can decreased risk of data lose. As a result Shohagh Paribahan can increase their productivity. 4. Shohagh Paribahan can come to an agreement with Ubook.com because ubook gives organization easy access to automatic online payment facilities. Directly with our bank. Ttransactions are processed immediately and our account is credited within seconds. Confirmation is automatic, no need for manual follow up. With Ubook as the gateway, online payment functions integrate into our website without requiring special software or hardware. 5. Shohagh Paribahan can use mobile commerce e.g. MobiCash to accept payment for e-ticketing and marketing campaigns i.e. discount offer etc. 6. Get discounted vehicle tracking system and software from Telecom Company that would generate report for better bus dispatch system. 7. Shohagh Paribahan might get private banks to accept 24/7 payment through deposits like Standard Chartered Bank, HSBC, DBBL, BRAC Bank etc.
GREENLINE PARIBAHAN LTD
1. Geenline Paribahan Ltd can also come to an agreement with Grameenphone to install Vehicle Tracking System in their buses on schedule routes Dhaka-Chittagong-Cox’s Bazar-Dhaka and Dhaka-SylhetDhaka. Therefore, we can reduce road accidents in these areas. 2. In terms of business website Greenline also maintaining a website which is not up to the mark. Only bus counters information available there. This is not the sign of good business. Greenline should upgrade their business website so that they can attract more customers and it will also increase the operational efficiency of Greenline. 3. Greenline Paribahan must move conventional IT architecture to server based computing system, therefore, they can reduce IT hardware & Software Cost, IT management time, Costs, and this server based computing system can decreased risk of data lose. As a result Greenline Paribahan can increase their productivity. 4. The documentation or monitoring of the software is not available to Greenline. That means Greenline is bound by the consultant if the top management plans to expand or change the software. So, it will better if they have own IT department and then they go for outsourcing because moving second generation IT architecture companies need to outsource. 5. As the Greenline’s market segment is up-class it is more likely for the customers to be computer literate and have access to bank accounts. Using services like iWallet, through which passengers can pay in Taka, can be a tool for tapping higher sales from this group. 6. Greenline can explore selling e-tickets online exclusively for Non-Resident Bangladeshi by accepting international credit cards. 7. Greenline can get relatively economic system like UBookSystem that can be accessed online and safely manage reservation and e-ticketing.
CONCLUSION
REFERENCES Mr. Lawrance, Executive, IT Department, Shohagh Paribahan Pvt. Ltd. (December 06, 2011) Mr. Munir, In-Charge Department of IT, Greenline Paribahan Ltd. (December 06, 2011) Mr. Mohammad Saifullah, In-Charge BRTC Booth, Shahbagh, Dhaka (December 06, 2011)
Mr. Rubaiyat & Mr. Rezaul, Grameenphone Customer Executives, Vehicle Tracking Services, (December 05, 2011) Grehound Lines Inc. Official Website – greyhound.com Bangladesh Road Transport Corporation, Official Website – brtc.gov.bd Shohagh Paribahan Pvt. Ltd, Official Website – shohagh.biz Greenline Paribahan Ltd, Official Website – greenlineparibahan.com
ANNEXURE 1. Questionnaire
