Delhi Metro

Delhi Metro Rail Corporation Analysis of Operating Environment & Competition Presented By: By: Ankit |Anoop Ashok| Vikram Amit

Overview • • • • • • • • • • • • •

A brief Introduction Key Objectives Main features Effect of Macro Environment SWOT Analysis Porter’s Five Forces Strategies Used by DMRC Customer Oriented Approach Performance Analysis Threat Analysis Issues affecting mode shift Advantages Suggestions & future predictions

 Need… • Delhi’s population(2005)-158 lakhs. • Length of Road- Increased from 652 km(1981) km(2001).

to 1122

6.21% p.a. •   No. of vehicles(2007) -51 lakhs & increasing @ increase in road • Results- Extreme congestion, slow speed, accidents, pollution level scaling up • Solution: Alternative mode of Transport required. “Thus Delhi Metro was not a luxury, it became a necessity to cater the need of transportation.”

Delhi Metro Rail Corporation The Delhi Metro project gave Delhi a world-class mass rapid transit system (MRTS). More importantly, it stood out from most other   public sector projects in India as it was completed on schedule and within the budgeted cost. DMRC was registered on 03/05/95 under the Companies Compan ies Act, 1956 for  implementation and subsequent operation of Delhi Metro. A joint Venture between Government of India and the Government of   National Capital Territory of Delhi, in equal partnership.

Key Objective  The main objective of DMRC is to improve Delhi's urban environment by reducing traffic congestion, exhaust emission and other types of urban pollution caused by motor vehicles, and to play a large role in improving Delhi's transit system.

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Three

lines Total length – 65.1 km Total No. of Stations – 59

At Grade Elevated Underground

Main Features Of Delhi Metro  Air

conditioning  Trains and all underground stations are air conditioned.  Tunnels are only ventilated.

 System

capacity 60,000 passengers per hour.

 Speed

Operating speed 50 km/h

Main Features Of Delhi Metro 

Ridership 8 lakh passengers per day



Train frequency 4 minutes



Fare collection Smart cards & Tokens

Macro Environmental Factors affecting DMRC

DMRC DMRC

Socio-Cultural Environment With ‘Commonwealth Games’ scheduled in 2010, the focus is on finishing the project by that time

Legal & Environmental Focuses on continual improvement in our Environment, Environ ment, Health & Safety policies, processes and procedures complying with local and national Environment, Health & Safety Laws.

Political Environment Environment • Full political support from Govt • Metro being honour for delhi so government  promotes it resulting in automating publicity

Economic • With increase in purchasing power of middle income group, a better mode of transport is required. • Delhi & NCR being National Business HUB

Technological Meter gauge, so that transfer and upgradation of  • Switching over to Standard gauge from Meter technology is easy as per global system • Focus on Eco-friendly technology

SWOT Analysis Strengths:

Opportunities :

•

• •

• • •

Reduced pollution / Eco friendly Solved the problem of  congestion in the city Low cost Mass transportation

Weaknesses: • Delay in some projects • Breaking of bridges • Facility not available during night • Unavailability of toilets in stations • Long queues in some stations like Rajiv chowk

• • • • •

Expansion of network Integration with other NCR cities Increased frequency Better design of trains Better security system Increased revenue for govt. by means of advertising Public private partnership : opening of retail outlets at metro stations

Threats : • •

Buses, Autos Personal vehicles

Applying Porter’s Five forces Model to DMRC

• Threat of Intense Segment Rivalry: DTC’s High Capacity Low floor buses (AC & non AC).

• Threat of new entrants:  Not profound but monorails can pose a threat

• Threat of Substitute:  No perfect substitutes, but auto rickshaw, taxi’s can pose a threat

Porter’s Competitive Forces contd… Bargaining Power of Consumer: Moderate fare & implementation of many services like Smart Cards, Feeder Bus etc. to ease consumer need shows a greater bargaining power of consumer. Bargaining Power of Supplier: Availability Availability of Large numbers of Contractors. Suppliers have very low bargaining power, as stringent penalty clauses are in  place for delay. Quality is uncompromised as the contractors needs to dismantle & rebuild in case of low quality.

Strategies used by DMRC • Financing Strategy: DMRC went overseas, tapping the Japan Bank of International Cooperation for loans to cover 60% of  the cost.

• Partnership Strategy: Went for extensive experience. Consulted with Pacific Consultants International from Japan for  engineering matters, Korea's Rotem and Japan's Mitsubishi supplied the initial shipment of coaches, France's Alstom designed of the automatic train control system.

Strategies Contd… • Pricing Strategy: DMRC has kept its fare reasonable with a minimum of Rs 6 and a maximum of Rs 24. and has compensated by increasing the revenue from other sources like advertisements, commercial exploitation of available space and consultancy services.

• Relationship Strategy : Assembled the metro carriages in Bangalore and rolled them on Indian Railway’s track straight to the New Delhi metro to avoid the conflict with Indian Railways about the kind of  track to be used.

Strategies Contd… • Advertising Strategy: Use of Lenticular vision technology - the picture and the projections are modified to suit the audience speed helping them to view the advertisements clearly

Customer Oriented Approach • Implementation of Smart cards • Feeder Bus Service • Rent a cycle service in the University campus • Ductile pathways and ramps to guide visually • Pre Station alert • Emergency Services

challenged people

Performance Analysis Average Points

Key Features Weighta ge (Consumer’s perspective)

 Technology Service Travelling Time Safety/Security Status Price Satisfying customers need Environmental Advantage Online information information Frequency of service

1 3 3 3 2 3 3

4.32

2

4.44

1 3

3.17 4.09

4.12 4.29 3.88 4.53 4.59 4.29

Analysis Performance of Metro: ∑ (Weightage X Points Earned) ∑ ( Max.Weightage X Max. Points) = 116/180 = 0.6452 = 64.52 %

Threat Analysis Route : Delhi University - Rajiv Chowk . Mode Of Transport

Fare

Time Taken

Bus

Rs. 7

35 minutes

Auto Rickshaw

Rs. 60

25 minutes

Metro train

Rs. 11

12 minutes

Threat Analysis s

ni m ni

).

Bus

(

e v ar T

mi T

Auto Rikshaw

e

l

Metro Train

Price (in Rs.)

Issues affecting “two wheeler” users for  mode shifting Issue

Metro

Remarks

Bus

Door to door  service

Transfer  inconvenience

One has to walk up to bus One can reach to the metro Probability of shifting the stop (maximum 500m) station by walk or by cycle mode is rickshaw, auto rickshaw or  very low.  by feeder bus. If destination does not lie in any bus route one has to shift in-between

 No need to follow timings

One has to follow the schedule of buses

Work/shopping  place is very near 

In any case one will use two wheeler only

If direct route is not available one has to get transferred in between

Transfer type can be different for  metro and bus.

One has to follow the metro If more frequencies are schedules  provided then it can help to shift the two wheeler users to bus or metro In any case one will use two wheeler only

As distance is short  probability of  shifting from two wheeler  to bus or metro is negligible.

Issues affecting “two wheeler” contd... Issue

Travel timings

Health conscious

Public Image

Bus

Metro

Remarks

If only in-vehicle time is considered it takes more time than metro

If only in-vehicle time is As metro has less stoppage compared, Metro takes less in comparison to bus and it time. has separate track and doesn’t mix with other  traffic, its speed is more than  bus system.

More exposed to pollution

No exposure to pollution as For health conscious people such the probability of shifting is more.

Young students and working  professionals would not like to project themselves as someone using a bus.

Relatively higher image.

The probability for shifting mode to metro is more than shifting to bus.

Advantages of Metro • Savings in Foreign Exchange due to reduced Fuel Consumption • Savings in time for the passengers • Reduction in Pollution • Reduction in road accidents • Reduction in capital and operating costs of vehicles • Lower maintenance costs for infrastructure • Improvement in road traffic conditions

Suggestions & Future Predictions • Should start service during night also • Similar projects discussed throughout the country • Focus on penetrating other Metro cities • Provide a link to other nearby cities

Suggestions Contd. • Integrated Smart Cards • Introduce Luggage Cabin • Help for Old age people • Focus on reducing time and energy to reach the platform from road

Thank You