Namma Metro to double as cargo carrier: BMRCL takes a leaf out of Delhi Metro, eyes non-fare revenue growth

The Bengaluru Metro Rail Corporation Ltd (BMRCL) is charting a new course to enhance its financial sustainability by venturing into cargo transportation. The initiative aims to boost non-fare revenue by collaborating with logistics and e-commerce firms, allowing the metro to expand beyond its traditional passenger services. 

According to a report by MoneyControl, BMRCL Managing Director M Maheshwar Rao stated that discussions with industry stakeholders are underway to develop a comprehensive roadmap for this project. 

This move is seen as a strategic effort to leverage the metro's speed and efficiency in the bustling city of Bengaluru. Byappanahalli has been identified as the central hub for these operations, facilitating seamless logistics integration. 

BMRCL's cargo transport initiative is inspired by the Delhi Metro's model, where the last coach of certain trains during non-peak hours is dedicated to cargo. This hybrid approach ensures that regular passenger services remain unaffected while contributing to a sustainable urban logistics system. The move is aimed at improving last-mile connectivity, reducing traffic congestion, and lowering pollution levels in the city. 

"Byappanahalli could be a key hub for the project. We are now exploring all possible methods to generate non-fare revenue," said Rao. This innovation reflects a broader strategy to optimise the metro's utility and economic impact. [2]

Beyond cargo services, BMRCL is exploring various avenues to increase revenue, such as advertising within metro trains and stations, train wrapping, and establishing retail spaces. Recently, the corporation has initiated plans to feature external ad branding, with 10 trains each on the Purple and Green Lines being wrapped with advertisements. 

"Of our 57 trains, 10 each on the Purple and Green Lines will be wrapped with advertisements," Rao confirmed. These efforts are part of a comprehensive strategy to harness the metro's infrastructure for lucrative non-fare revenue streams while enhancing the commuter experience. 

In an ambitious move to further commercialise its assets, BMRCL has floated tenders for semi-naming and co-branding rights at select metro stations. This initiative is intended to strengthen the financial foundation of the metro by monetising station names and advertising spaces. 

Additionally, there are plans to construct a commercial complex and public parking facility above the Nadaprabhu Kempegowda Metro Station under a Public-Private Partnership model. This development would include office spaces, retail outlets, and budget hotels, signifying a significant expansion of the metro's economic role in the city. 

Despite these strategic initiatives, BMRCL faces challenges such as a shortage of trains and commuter dissatisfaction due to recent fare hikes. Currently, BMRCL operates 57 trains over a 76-km network, which experts suggest is insufficient for optimal frequency. The corporation has also received criticism following fare increases of up to 71%. 

These obstacles underline the importance of BMRCL's efforts to diversify revenue and enhance service offerings, ensuring the metro remains a vital component of Bengaluru's urban transport landscape. "This will be a win-win for both Bengaluru Metro and logistics providers, as Namma Metro is the fastest mode of transport in the city and will also generate significant revenue for BMRCL," Rao emphasised.