The Karnataka State Road Transport Corporation (KSRTC) is set to enter the logistics business by deploying 20 fully-equipped trucks with the aim of enhancing non-ticket revenue. Based on its extensive connectivity and resources, including depots across Karnataka, the State-owned corporation will diversify into the logistics business, Transport Minister Ramalinga Reddy told The Hindu.
In 2021, the KSRTC launched ‘Namma Cargo’ services, enabling State road transport corporations, excluding the BMTC, to transport parcels in buses as a revenue-generating initiative. Expanding upon this established cargo service, the KSRTC will further get into the logistics sector by inducting trucks into its fleet.
“We used to outsource our parcel services to external agencies, generating approximately ₹4 crore in annual revenue. Then we introduced Namma Cargo, where we exclusively operate the service and offer a 20% commission to external agencies. We have achieved a monthly revenue of ₹1.10 crore. Now, as a pilot initiative, we are adding 20 trucks with the anticipation of expanding the size of this fleet in the coming days. Our goal is to reach an annual income of ₹100 crore from the logistics business,” said Mr. Reddy.
According to the Minister, the KSRTC purchased the trucks at a price of ₹17 lakh per vehicle. These fully-equipped trucks, each with a six-tonne capacity, are intended to cater to diverse clusters, such as fruits, vegetables, textiles, and pharmaceuticals.
V. Anbukumar, Managing Director of KSRTC, said: “KSRTC, built on trust and respect from the people, is stepping into the logistics sector. We anticipate success for the new venture and our trucks will serve various clusters in the State, particularly in agriculture, textiles, and automobile, where five to six-tonne loading vehicles are in demand for transporting goods.”
KSRTC has crafted a logo featuring dark blue branding for its trucks. According to officials, this choice symbolises reliability, authority, and knowledge, highlighting the significance of the dark blue colour in KSRTC trucks.
