Bengaluru: Namma CargoThe Logistics servicesKarnataka State Road Transport Corporation’s efforts to generate revenue from commercial activities have not been successful.

The initiative, which included the addition of 20 trucks to its freight business by Dec 2023 and announced plans to expand it to 100 vehicles within a single year, has not yielded the desired revenue because of multiple factors.

A majority of the fleet, which generated Rs 10 lakh in revenue this year is now used for internal purposes. The corporation’s bus fleet freight services generate substantial revenue, more than Rs 2 crore each month. During its launch KSRTCThe company aims to generate Rs 100 crore in revenue annually with its expanded Namma Cargo Fleet.

According to a senior KSRTC representative, there are many private companies in the market that offer competitive rates, provide credit, goods loading/unloading, tracking, monitoring, and supply chain management system.

“Cargo truck service is new to us. We too faced challenges, just like any other venture. We do not have a dedicated staff to load and unload goods. Bookings have been difficult to get because of this. In the private sector drivers also serve as supervisory staff. We cannot entrust our drivers with these tasks.

The corporation also expected to secure business from public sector enterprises and other government bodies, but that did not happen.

Currently, 14 of the 20 trucks are used for internal transport of materials to workshops or depots. “We used to use our old buses modified for the transportation of tools and material required in workshops or depots. We have now deployed trucks to this end. Currently, all cargo trucks are in operation. “None of the vehicles is off the road,” said an official.

To overcome these challenges, management has decided that they will approach the government to seek exemptions under the Karnataka Transparency in Public Procurement Act. This will allow them to secure bookings with govt-run businesses, federations and boards, as well as other entities. The corporation is also looking at partnering with private companies for operational purposes.

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