CHAPTER I

INTRODUCTION

1.1Context information
Transportation is the movement of humans, animals and goods from one location to
another. In other words, the action of transport is defined as a particular movement of an
organism or thing from a point A to the Point B. Modes of transport includes
air, land (rail and road), water, cable, pipeline and space. Transport is important because
it enables trade between people, which is essential for the development.

Public transportation is a transport of passengers by the group travel system available for
use by the general public typically managed on schedules, operated on established routes,
and that charge a posted fee for each trip such as city bus, metro, airlines, coaches, trolley
buses and so on. Public transportation helps to reduce the vehicles on the road and is
cheap as viewed from the perspective of cost. The first organized system of public
transport system was initiated from Paris, France in 1662 AD. In Nepal public
transportation system started from 1940 AD. Roadways, Ropeways, waterways and
railways are the public transportation system used in Nepal. Roadways is the major
means of transportation and available all over the country reaching 77 districts of
Nepal .There are 60 major highways in Nepal and 29,639 km of length of the roads in the
country. East west highway is the longest with the distance of 1027 km (Ghimire, 2018).

Pokhara is a beautiful city located in the western part of Nepal. It is the biggest
metropolitan city in the country in terms of size. It is located in Gandaki province and
Kaski district which is the capital city of Gandaki province too. The average altitude of
Pokhara is 850 metres. The latitude of Pokhara is 28.27 degree north and longitude is
83.96 degree east. Pokhara is surrounded by hills from all sides and river Seti flows
through the middle of the city and population is estimated to be around 4 lakhs in the
valley (Ghimire, 2018).

1
The intercity public transportation plays the vital role for the day to day activities of the
public. Public transportation system has helped thousands of people in Pokhara to reach
to their destination daily.

Buses, taxis and vans are the major public transportation vehicles in Pokhara. There is no
availability of tempos, rickshaws, metros and trolley buses as a means of public
transportation in the valley. Public transportation system was established in Pokhara in
1970 AD. Bindabasini bus service, Pokhara bus entrepreneurs, Mama transport, Pokhara
taxi association, Pokhara fewa yatayat are the major service providers in the valley. There
are 20 routes for the buses and vans and taxi has no prescribed routes. There are around
1200 taxis operating daily in the valley. Public transportation system of Pokhara is
operated 365 days a year. Public transportation system in Pokhara has given employment
opportunities to 2000 peoples directly and generating indirect employment to hundreds of
people working in repairs and maintenance, administration and more (Office Record of
Professional Associations of Public Vehicle Owner).

1.2 Purpose of the study

The main purpose of the study is to explore the Public transportation system in
Pokhara .The specific objectives of this study are as follows:
 To examine public transportation system in Pokhara valley.
 To assess the number of vehicles in service of public transportation in Pokhara.
 To analyze the revenue generated by the vehicle in public transportation.
 To examine capacity utilization position.

1.3 Significance of the Study

The importance of the study means the value of the research and research design to the
related organization and person. All the studies are done to have some meaningful
outcomes and those outcomes help the readers. The significances of the study are
described below:
 The study will help to know about public transportation system in Pokhara.

2
  The reference can get knowledge about how to impose tax and fees for the
vehicles.
 The study will help to analyze and develop new transportation system in the
valley.
 The study will help to design bus parks, overhead bridge, stations and other
infrastructures in the valley.

1.4 Limitations of the study

The study has the following limitations:
 This study is concerned only with the study Public transportation in Pokhara
valley but, other places in the Pokhara metropolitan known as Lekhnath has not
been studied.
 In the study, other vehicles which operate in intercity public transportation and
carry the passengers are neglected.
 This study is based on self-direct observation of the performance of sampled
vehicles in different route and time and collected data from respondents.
 Lack of time to carry out the study.

1.5 Literature Review

The first section of this chapter presents the theoretical framework about the concept of
transportation, capacity and other variables. The second section presents the review of
relevant studies and research articles published in different international journals.

1.5.1 Theoretical framework

This chapter consists of concept of transportation, importance of transportation, modes of
transportation, land transportation, urban transportation, and growth in demand for urban
transport, concept of revenue and concept of various dependent variable and independent
variables.

Concept of Transportation

3
Transportation is the movement of people and goods from one location to another.
Development of any country depends upon the economic development of the country and
economic development is supported by transportation infrastructure of that country. The
word transport has been derived from Latin word. Trans means across or the other sides
and portage means to carry. Transport, thus, means to carry to the other side or form one
place to another. Transporter, as such is a service, which helps goods and persons to be
carried from one place to another (Jain, 1973).

The provision of transport services has changed dramatically during the last three
decades. At the end of the 1970s, most countries relied on the public sector both to
produce transport service and to build their basic infrastructure, namely, airports, roads,
railways and ports.

In underdeveloped country like Nepal, investment in transportation infrastructure has

been often difficult to finance through domestic financial institution and government.
Most of the highway plans of Nepal have been successful by financial aid and support
from China, India, United Kingdom and other countries.

Importance of Transportation
Transportation plays a vital role in the process of economic development of a country.
Unless the sources of raw materials and production centre covers at one point, production
is unthinkable without means of transportation. Thus, by providing "place utility
transportation turns out itself to be an integral part of production”. Efficient production,
therefore, means efficient transportation to the extent that the latter involves in the
process of production. The ultimate end of production is consumption. Consumption is
possible only through exchange and distribution. But exchange and distribution need
transportation. Thus for efficient production, distribution and consumption, transportation
is necessary (Shrestha, 1981).

As transport links market as well as people, it increase living standard of people,

improves the efficiency of the price system and permits the achievement of economic of
scale in production and the distribution.
4
Modes of Transportation
The selection of modes of transportation depends on availability, cost, nature of work,
geographical situation, interest and others. Every mode of transportation has its
advantages and disadvantage. No single mode can meets all transportation needs.
Transportation is usually classified by the medium in which the movement occurs.
Within each mode, many different methods are used to move people and goods from
place to place. The three types of transportation are:

Land Transportation
1. Train
2. Motor vehicles
3. Cable car
4. Trolley buses

Air Transportation
1. Air plane
2. Boeing airbus

Water Transportation
1. Raft and canes
2. Sailing Vessels
3. Motorboats and personal craft
4. pipeline

Public Transportation
Public transportation system has been proved the most efficient means for travelling large
numbers of passengers, especially in dense urban areas. Bus services in particular provide
considerable flexibility in meeting demands for transport at various levels of quality and
quantity (The World Bank, 1986).

Public transportation helps reduce the number of vehicles on the road and is a convenient
option for people travelling relatively short distance. Public transportation land, air and

5
water transportation services in all modes of transportation, such as bus, taxi, rickshaw,
tempo, light rail, heavy rail, steam ship, modern passenger lines airplane. The most
common types of public transportation are bus, taxi, van and airplane.

Conceptual Framework
Conceptual framework is an important component for every study. Without clear concept
on subject matter study may not get through the right track. Conceptual framework helps
to determine the various independent variables associated with core dependent variable of
the study i.e Revenue of the public transportation, hence giving the study fixed
foundation. In this report, Revenue is the dependent variable and factor like number of
operating days in a year, number of trips per day, fare, utilization capacity, distance
travelled are the independent variable.

Independent variable
Capacity
Capacity utilization Dependent Variable
Revenue
Number of trips per day
Fare
Distance travelled

Concept of Capacity
The simple definition of capacity is the ability to hold, receive, store or accommodate.
The capacity of organization to produce goods or services can be adjusted to meet
fluctuating sales leaves in long term, which are deflected in master production
schedule.The capacity of a facility is an ambiguous concept .It is not like the capacity of
wine bottle which will hold one litre of wine. It is a rate of input, which translates into
output in a given time (Handrick & Moore, 1985).
The simplest statement of capacity is the number of units of output per time unit that the
system is designed to produce .the term capacity refers to an upper limit or ceiling on the

6
load that on operating unit can handle. The operating unit might be plant, a department, a
store, or a worker.

In general, if market demand grows, capacity utilization will raise, and conversely, if
demand weakens, capacity utilization will slacken. The effective management can also
raise capacity utilization rate. The higher capacity utilization helps to maintain lower per
unit of goods or services, higher rate of return on investment, higher profit for the
organization.

Fare
Fare is the amount paid by the passenger to travel from one place to other in the public
vehicle. The fare changes with the change in distance .We pay more fare for longer
distance and low fare for shorter distance. Revenue depends on the fare. Higher the fare
more will be the revenue and vice versa.

Number of trips
Number of trips may be defined as the number of times the vehicle moves from
beginning station to the ending station. If there are more trips then there will be more
revenue generation and vice versa.

Distance travelled
Distance travelled may be defined as the distance travelled by the vehicle. Distance
travelled is measured in the km and it is useful variable in calculating the revenue too.
Distance travelled is more than the revenue generated will also be more as more
passengers are expected to travel in the vehicle.

Concept of Revenue
The money income which a producer gets from the sale of his product is known as
revenue of the firm. It is also called sale proceeds of the firm. The concept of revenue
should not be confused with the concept of profit. Profit of a firm is estimated as the
difference between revenue and cost related to the production of a commodity (Profit =
Revenue – Cost).Revenue can be divided into three types:

7
  Average revenue
 Total revenue
 Marginal revenue
1.5.2 Review of Related Studies
In this section attempt has been made to review the relevant studies done by other
researcher previously. This includes review of articles, dissertations and other reports.
This section presets the review of related studies and research articles published in
different journals. To review the previous studies and articles, the websites
www.blackwell-synergy.com

Egmond and others carried out a study a comparative analysis of the performance of
urban public transport system in Europe in 1989. The objective of the study was to
investigate the success conditions for LPT system in 22 European cities. In the analysis,
critical success factors have been subdivided into four categories: external, strategic,
tactical and operational factors, in particular, appear to apply a major influence.
Researchers have concluded that, in general, the regulatory reform of public transport has
created new challenges and also new opportunities for improved operations. The
comparative analysis undertaken in the present study has demonstrated that as a result of
regulatory reform-despite variation-many European cities have managed to organize their
LPT system in a more efficient and satisfactory way. However, many additional for-
reaching changes should be planned, implemented and realized in order to create a
sustainable transport system (Egmond, Nijkamp & Vindigni, 1990).

Henson and Essex have conducted a study on the development, design and evaluation of
sustainable local transport networks in 1989. The objective of the study was about the
relationship between urban areas and transport, particularly the transport network or
street pattern. In particular, it is interest in the design of local networks and to effect of
people who travel by different modes. Researchers have concluded that transport affects
the nature of urban development. Density of development is an important factor in
determining how frequently and by what means people travel. If density has a higher
correlation with use of transport the network characteristics it does mean that transport
8
policy could concentrate on achieving other objective such as crime prevention or
architectural elegance. To improve the quality and sustainability of our urban areas we
need to have policies that guide design, density and transport model split and that operate
together, and these also needs to be emphasis on the measurement of the performance of
street networks (Henson & Essex, 1991)

UK Department for transport (2003) has also conducted studies regarding customer need
in public transport. High frequency of service, services that are reliable and fares that
offer value for money are revealed as important needs of UK public transport users. The
bus also has a broad range of destinations to fulfill travel demand of customer. In this
report, the users also reported about the importance of understandable time table
information in bus stop and in local newspaper in order to make them aware of the
existence of the service. Simple ticketing is also important in order to make them use
public transport.

Only few researchers have been done in the area of cost and profit structure of Nepalese
Transport service.

Gyanwali conducted a study on the condition of road in Pokhara in 1996. The objective
of the study was traced out the existing road condition in Pokhara Sub-metro Municipal
Corporation. On the basis of findings, researcher concludes that over vehicles pressure
upon road should be controlled by constructing supplementary roads for assist durability
of road and good conditioned vehicles are required to save the environment of Pokhara
(Gyanwali, 1991).

Upadhaya conducted a study on transport in Nepal in 1963 with the objective to analyze
the problem and prospect of transport in Nepal. On the basis of findings, researcher
conducted that the topographical condition of the country, negligence of government,
lack of finance, technicians and proper equipment are the problems of transport in Nepal.
Researcher also concluded that road transport is the only means to connect the village and
to transport goods from one village to another, and road transport will be quite

9
advantageous for our country in consideration of topographical features (Upadhaya,
1993).

Pradhan has conducted a study on transport and communication in Nepal in 1964. The
researcher pointed that mountains, lack of modern equipments and extreme scarcity of
capital are the major barriers to transport. On the basis of the findings, researcher
conduced that national market can only be developed with transport system connecting
all the important places and the market of all the places. So, the development of good
system of transportation is the lifeline for the economic development of the country
(Pradhan, 1997).

Dogra conducted a study on transport in India in 2008 with the objective to analyze the
problem and prospect of transport in India. On the basis of findings, researcher conducted
that the topographical condition of the country, negligence of government, lack of
finance, technicians, proper allocation of resource and proper equipment are the problems
of transport in India. Researcher also concluded that road transport is the only means to
connect the village and to transport goods from one village to another, and road transport
will be quite advantageous for India country in consideration of topographical features
(Dogra, 2008).

Rijal (2014) had conducted a research on transportation, Cost and Profit Management
problem in Nepal A case study of PrithviRajmarga Bus Sanchalak Samitte. He has
centred his study to examine capacity utilization and profitability of Pokhara Kathmandu
Mini- Micro Buses, Pokhara. It covers five years financial statement. The major findings
are as follows:

The company's variable cost is in proportion than fixed cost in total cost amount,
which contribute for lower contribution margin. The company has high fixed and variable
cost (i.e. salary and wage, fuel, insurance, maintenance cost, mobile charge, depreciation,
and daily food expenses) Company has no any plan to reduce cost. There is lack of
effective cost control programs of techniques. The board of directors is the main authority
for price fixing and directly interferes to price of per passenger rate. Prithvi Rajmarga
10
Bus Sanchalak Samittee has not proper practice of segregating the costs in to fixed and
variable or controllable and non controllable. There is no proper co-ordination among
administration and Bus staff. Prithvi Rajmarga Bus Sanchalak Samittee has not utilized
its capacity. The company has high fixed and variable cost (i.e. salary and wage, fuel,
insurance, maintenance cost, mobile charge, depreciation, and daily food expenses)

Study Major findings

Egmond at al 1990 Egmond and others carried out a study on a comparative
analysis of the performance of urban public transport system in
Europe in 1989. Researchers have concluded that, in general,
the regulatory reform of public transport has created new
challenges and also new opportunities for improved operations.
Henson & Essex, 1991 Henson and Essex have conducted a study on the development,
design and evaluation of sustainable local transport networks in
1989. To improve the quality and sustainability of our urban
areas we need to have policies that guide design, density and
transport model split and that operate together, and these also
needs to be emphasized on the measurement of the performance
of street networks.
UK Department for UK Department for transport has also conducted studies
transport, 2003 regarding customer need in public transport. In this report, the
users also reported about the importance of understandable time
table information in bus stop and in local newspaper in order to
make them aware of the existence of the service.
Gyanwali, 1991 Gyanwali conducted a study on the condition of road in
Pokhara in 1996. Researcher concludes that over vehicles
pressure upon road should be controlled by constructing
supplementary roads for assist durability of road and good
conditioned vehicles are required to save the environment of
Pokhara.
Upadhaya, 1993 Upadhaya conducted a study on transport in Nepal in 1963 with
the objective to analyze the problem and prospect of transport
11
 in Nepal. Researcher also concluded that road transport is the
only means to connect the village and to transport goods from
one village to another, and road transport will be quite
advantageous for our country in consideration of topographical
features.
Pradhan, 1997 Pradhan has conducted a study on transport and communication
in Nepal in 1964. On the basis of the findings, researcher
conduced that national market can only be developed with
transport system connecting all the important places and the
market of all the places.
Dogra, 2008 Dogra conducted a study on transport in India in 2008 with the
objective to analyze the problem and prospect of transport in
India. Researcher concluded that road transport is the only
means to connect the village and to transport goods from one
village to another, and road transport will be quite
advantageous for India country in consideration of
topographical features.
Rijal, 2014 Rijal had conducted a research on transportation, Cost and
Profit Management problem in Nepal. A case study of Prithvi
Rajmarga Bus Sanchalak Samittee. He concluded Prithvi
Rajmarga Bus Sanchalak Samittee has not proper practice of
segregating the costs in to fixed and variable or controllable
and non controllable. There is no proper co-ordination among
administration and Bus staff. Prithvi Rajmarga Bus Sanchalak
Samitte has not utilized its capacity.

1.6 Research Methodology

This is an analytical case study of Public transportation system in Pokhara. Research
methodology is the side of coin. To search again, various tools, techniques and methods
12
are used systematically that is called research methodology in simple way. Research
methodology assists, to formulate the way to get the pre-determined objectives so it is the
strategic formula, which helps to study a problem smoothly and scientifically closer to
truth. The main contents of research methodology in course of the study are as follows:

1.6.1 Research Design

Research design is an integrated frame work of the whole study that guides the researcher
in formulating, implementing and controlling the research work. The study is designed
within the framework of descriptive research design.  Descriptive research is used to
obtain information concerning the current status of the phenomena and to describe "what
exists" with respect to variables or conditions in a situation. Thus, this study is performed
in and around the crucial point to fulfil the research objectives. Descriptive research
design is used to attain the objectives of the public transportation system in Pokhara.

1.6.2 Population and Sample

Population is a set of groups, individuals and elements having the same nature,
importance and existence. Similarly, the sample is only the portion of the population. In
this study, total professional associations of public vehicle owner are the population.
There are all together 1800 vehicles in Pokhara valley (Office Record of Professional
Associations of Public Vehicle Owner). Here, 50 vehicles are taken as the sample
through the judgmental sampling technique.

1.6.3 Nature and Source of Data

This study is basically based on primary and secondary data. The required data were
collected from head office of Pokhara Bus entrepreneurs, Pokhara taxi association, Mama
transport, Bindhabasini yatayat, Pokhara Fewa yatayat and staff of the vehicles. As
concerned to the secondary data, route schedules of vehicles, list of vehicle, fare rate of
different routes were directly obtained from the head office of the concerned committee.
Similarly, capacity utilization, Number of operating days in a year, and other dates were
collected from the survey.

1.6.4 Data Collection Procedures

13
All the primary data required for the research have been collected through the direct
interaction with the sampled vehicles in different routes and time. Structured set
Questionnaires has been designed and administered with sample vehicle staff.
Questionnaire method was used for sampled vehicle staffs. Questionnaires were divided
into two parts general and specific questions. General questions were same for all the
vehicles whereas specific questions differ from one type vehicle to the other.
Questionnaires consist of nine to thirteen questions depending on the vehicles. Then, the
questionnaires were filled with the interaction with the staffs of the vehicles. An average
time of 3 minutes was taken during the filling of the questionnaires. The data were
collected from different places around the Pokhara. Required secondary data and other
related information were collected from the field visit of the head offices of committee
and Google maps. Google map was used to calculate the distance between two
destinations.

1.6.5 Data Analysis Tools

Both mathematical and statistical tools have been used to analyze the data according to
the problem and objectives of the study. All the data which are received from the various
sources has been manipulated properly, composed together to give a good outcome. They
are presented in:
 Pie chart
 Bar diagram
 Line chart
 Table

CHAPTER II
DATA PRESENTATION AND ANALYSIS

14
Data analysis is the process of developing answers to questions through the examination
and implementation of data. The basic step is the analytical process consist of identifying
issues, determining the availability of suitable data, deciding on which methods are
appropriate for answering the questions of interest, Applying the method and evaluating,
summarizing, and communication the results. This chapter is basically focused upon the
analysis of collected data from different primary sources as well as secondary sources. In
this chapter the relevant and the available data/information regarding the primary market
have been presented and analyzed.

The required data were collected from head office of car and bus association, owners of
vehicles, and staff of the vehicles. As concerned to the secondary data, route schedules of
mini-micro buses, list of vehicle, fare rate of different routes were directly obtained from
the office of vehicle association.

2.1 Respondents Profile

Respondents are the staffs of different public transportation vehicles. Among the entire
staffs in the Pokhara city sampling of the respondent were taken, selected from the total
population to obtain required information for the research. Respondent profile is shown
below on the basis of different traits: gender, age and others.

Different respondent were selected from the population and questionnaire were asked.
Following analysis is done. According to questionnaire filled.

2.1.1 Gender of the Respondents

Gender is an important variable in expressing the response about the problem. This study
has covered response of male only as there is no participation of female in public
transportation system in Pokhara.

2.1.2 Age of the Respondents

Age of the respondents is one of the most important characteristic in understanding the
view about the particular problems. With the change in age there is a change in response
too.

15
Table: 2.1
Age of Respondents
Age Number of respondents Percent

15-25 18 36

25-35 20 40

35-45 7 14

45+ 5 10

Total 50 100

(Source: Field survey, 2019)

25
Number of respondents

20

15

10

0
15-25 25-35 35-45 45+
Ages

Figure 2.1: Age of Respondents

Figure 2.1 and Table 2.1 reveals that 40 percent of the respondents were from the age gap
of 25-35 which represents the majority.

2.1.3 Vehicles of the Respondents

Respondents were selected on the basis of fare to three different types of vehicles namely
taxi, bus and van. The above mentioned vehicles were the major vehicles used in Pokhara

16
as there is no availability of other public vehicles than taxi, bus and car in public
transportation. The data is presented in the table 2.2

Table: 2.2
Vehicles of the Respondents
Vehicles Number of respondents
Taxi 30
Bus 12
Van 8
Total 50
(Field survey: 2019)

16%

Taxi
Bus
24% Van
60%

Figure 2.2: Vehicles of the Respondents

Table 2.2 and figure 2.2 shows that the 60 percent of the respondents were from taxis.

2.1.4 Ownership of the Vehicle

Respondents were asked some questions to know about the ownership of the vehicles.
From the survey the figure 2.3 shows the ownership of the vehicle among the
respondents.

17
 20%

Owner of vehicle
Staff of vehicle

80%

Figure 2.3: Ownership of Vehicles

Figure 2.3 reveals that 80 percent of the respondents were the staffs of the vehicles.

2.2 Data presentation and analysis

The analysis of the data is done as per the survey finding and secondary data. The data is
represented, analysed and expressed in the form of charts and diagrams.

2.2.1 Opinion about the Infrastructure and Traffic in the Pokhara

Respondents were asked some qualitative questions also to know about the status and
condition of the public transportation in the Pokhara. The answers provided by them
could help in the planning of new projects, implementation of new laws and many more.
The Table 2.3 describes the data obtained from the survey.

18
Table: 2.3
Opinions of the Respondents
Questions Frequency Percent
Are you satisfied with the road infrastructure in Pokhara?
Yes 30 60
No 15 30
Neutral 5 10
Do you find the traffic in Pokhara busy?
Yes 11 22
No 33 66
Neutral 6 12
Do you think Public transportation needs improvement in
Pokhara?
Yes 35 70
No 2 4
Neutral 13 26
Total 50 100
(Field survey: 2019)

60 percent respondents are not satisfied with the road infrastructure in Pokhara. Similarly,
66 percent of the respondents feel that the traffic is not busy in comparison to the other
major cities.70 percent of the respondents feel that the there should be improvement in
the public transportation.

2.2.2 Discount taking Passengers

There is a provision of discount for the students in public transportation in Nepal. The
discount percentage is 45 percent. The percentage of the passengers taking discount can
be presented in the table 2.4.

Table: 2.4

19
Discount taking Passengers
Vehicles Discount taking customers
Bus 40%
Van 20%
Car 0
(Field survey: 2019)

Table 2.4 reveals that the percentage of discount taking passenger travelling in bus is 40
percent and 20 percent in van.

2.2.3 Operating Time of a Vehicle

Public transportation is not operated 24 hrs a day. The operating hrs of the vehicle can be
shown in the table 2.5.

Table: 2.5
Operating Time of a Vehicle
Vehicles Operating time
Taxi 5am-10pm
Bus 5am-8pm
Van 5am-8pm
(Field survey: 2019)

Table 2.5 reveals the operating time of a taxi is more than that of bus and van.

2.2.4 Number of Public Transportation Vehicles

Number of vehicles which operate in the Pokhara can be studied by classifying into three
types namely taxi, van and bus.

Table: 2.6
Number of Vehicles
20
 Types of vehicles Number of vehicles Percent

Taxi 1200 75
Bus 328 21

Van 72 4

Total 1600 100

(Field survey: 2019)

Table 2.6 reveals number of vehicles in Pokhara. There are 1600 vehicles used in public
transportation in Pokhara.75 percent of vehicles constitutes Taxi, 5 percent of vehicles
constitute Vans and 20 constitute of vehicles constitute Buses.

The data obtained from the survey can also be presented in pie-chart in the figure 2.4.

21%

5%
Taxi
75% Van

Fig 2.4: Number of Vehicles

2.2.5 Operating Days in a Year

Public transportation system is operated throughout the 365 days in a year. But every
vehicle is not allowed to operate daily in the queue or route. So the operating days is
calculated for each vehicle. The operating days of the vehicles are shown as below in
table 2.7

Table: 2.7
Operating days in a Year (for Vehicle)

21
 Vehicle Operating days in a year
Taxi 360
Bus 329
Van 341
(Field survey: 2019)

370
Operating Days in a year

360
350
340
330
320
310
Taxi Bus Van
Vehicles

Figure 2.5: Operating Days in a Year

Table 2.7 and figure 2.5 show that Taxi operates 365 days in a year. Bus operates 329
days in a year for a queue and van operates 341 days in a queue but the transportation
system operates each day in a year. Taxi operates more than bus and van in terms of
operating days.

2.2.6 Fare, Route and Distance

For the analysis of fare, route and distance travelled by the vehicles in Pokhara three
major routes were studied but in the case of taxi there was no defined route.

Taxi
Taxi has the capacity of four people .The fare rate is generally independent of the persons
travelling in the car rather its dependent on the distance travelled. There is no discount for
the students. There is provision of meter for the fare in taxi but usually do not use them
and charge price on their own. Fare depends on the Bargaining power too. Fare and
distance has been compared in the table 2.8.

22
Table: 2.8
Fare and Distance of taxi
Sample Route Distance Fare
Lakeside-Prithvichok 3.1km Rs250
Chhorepatan-Fulbari 9.1km Rs 400
Harichok-Khalte 12km Rs 600
Average fare÷distance 24÷3=8km Rs1250÷3=Rs 415
(Field survey: 2019 )

Table 2.8 reveals three sample routes were used to calculate the average fare of the taxi.
The average fare of the taxi is Rs 415 and the average distance travelled by the passenger
is 8 km for one trip. The average fare of the taxi is found to be expensive in Pokhara. The
fare of the taxi is not standard too.

Van
Van generally known as winger (tata) has the capacity of fourteen people. They have
defined route and standard fare system. They provide discounts to the students but the
number of students travelling in Van is less in comparison to buses as their route
generally doesn’t connect to the universities and colleges in the valley. It has few routes
and travels less distance in comparison to the bus. The fare and distance travelled can be
studied on the basis of table 2.9

Table: 2.9
Fare and Distance
Route Distance Fare
Harichok-Chhorepatan 7km 32×0.8+32×0.2×0.55=Rs 29.12
Chipledhunga-Tutunga 8 km 35×0.8+35×0.2×0.55=Rs31.85
Harichok-Gandaki hospital 7 km 31×0.8+31×0.2×0.55=Rs 28.21

23
 Average fare/Distance 7.5 km Rs 30
(Field survey: 2019)

Table 2.9 reveals that sample of three routes were used to calculate the average distance
covered by van and fare paid by the traveller. The fare is calculated by adjusting
discounted passenger along with the non-discounted passenger. The discount is given for
the students who have their student card. Discount percentage is 45 percent. From the
survey it was found that 20 percent of the passengers are students who get the discount in
their fare in van.

Bus
Bus has no fixed seat capacity as like van and car. Its capacity ranges from 25 to 40 seats.
But the average seat capacity of the bus in Pokhara is 32.They have 18 different routes in
the valley. They have standard fare system. They provide discount to the students with
the identity card. The Fare and distance can be studied from the table 2.10.
Table: 2.10
Fare and Distance for Bus
Route Distance Fare
Kaseri-khapaudi 14km 45×0.6+45×0.4×0.55=36.9
Lamachaur-Chhorepatan 11km 33×0.6+33×0.4×0.55=Rs27
Deep-Khalte 12km 40×0.6+40×0.4×0.55=Rs32.8
Average Distance/fare 12km Rs 32
(Field survey: 2019)

Table 2.10 shows that Bus travels average distance of 12 km per one route and the
average fare is Rs 32.Discount is given to the students with their identity card. The route
of the bus is much scattered than van. So, the discount taking passengers are also more in
the bus in comparison to the van.

The average fare of the public vehicle and distance travelled by them in one route can be
studied with the help of the table 2.11.

Table: 2.11
Average Fare and Distance Travelled
Vehicles Average Fare/Rate Distance travelled
24
 Taxi Rs 415 8km
Bus Rs 32 12km
Van Rs 30 7.5km
(Field survey: 2019)

Table 2.11 shows that the average fare of the taxi is Rs 370, for the bus is Rs 36 and for
the van is Rs 30. The bus and van provide discount for the students. The discount
percentage is 45 percent. The fare calculated in the table is after the adjustment of
discount in the case of van and bus. Similarly taxi travels 8 km, bus travels 12 km and
van travels 7.5 km per one trip.

2.2.7 Number of Trips

Number of trips deals with how many times a vehicle operates from the beginning station
to the ending station in a day. The number of trips can be studied with the help of the
table: 2.12.

Table: 2.12
Number of Trips of a Vehicle
Vehicles Number of trips
Taxi 7
Bus 8
Van 10
(Field survey: 2019)

From the table 2.12, the number of trips for the taxi is 8, for the bus is 8 and for the van is
10.This can be illustrated in the figure 2.6.

25
 12
10

Number of trips 8
6
4
2

0
Taxi Bus Van
Vehicles

Figure 2.6: Number of Trips of a Vehicle

2.2.8 Capacity Utilization

The standard capacity of the vehicles used in public transportation in Pokhara can be
described on the basis of the table 2.13

Table 2.13
State of Capacity Utilization of Vehicles
Vehicles Capacity utilization Number of vehicles Daily trips
operating daily
Taxi 1 1200 7
Bus 26/32=0.81 295 8
Van 13/14=0.93 67 10
(Field survey: 2019)

Table 2.13 reveals that the capacity utilization of the taxi, bus and van are 1, 0.81 and
0.93 respectively.

26
2.2.9 Revenue generation
The income which a bus collects during a day of its operation is called revenue. Revenue
generated by the individual and the industry as well as revenue per day and per year is
calculated in the table 2.14. Revenue is the motivating factor in every business. Table
2.14 has given the details about the Revenue generation of public transportation in
Pokhara.

Table: 2.14
Revenue generation of the public transportation in Pokhara
Particulars Taxi Bus Van
Average operating days in 360 329 341
ayear
Average distance travelled per 112kms 96kms 75kms
day
Seat capacity 4 32 14
Capacity utilization 1 0.81 0.93
Fare rate 415 32 30
Number of trips 7 8 10
Revenue per day Rs2905 Rs6635 Rs3906
Annual Revenue of individual Rs 1045800 Rs 2182915 Rs 1331946
vehicle
27
 Number of vehicles 1200 328 72
Annual Revenue of the Rs1254960000 Rs715996120 Rs 95900112
vehicles
(Field survey: 2019)

The mathematical formulas used in calculating annual revenue are:

Average distance travelled per day=Average number of trips per day× Average distance
travelled
Revenue per day=Capacity utilization× Number of trips× fare rate× seat capacity
Annual revenue of individual vehicle= Revenue per day× Number of operating days in a
year
Annual revenue of the vehicles (industry revenue): Annual revenue of individual
vehicle× number of vehicles

Table 2.14 shows us the revenue of the public transportation in Pokhara. It has calculated
the revenue generated by the vehicle as well as the industry annually. The revenue is
calculated using the number of seats, fare per seat, utilization capacity, number of
operation in a year and others.

The table shows that the average operating days of vehicles are 360 for the taxis, 329 for
the bus and 341 for the van. Though the vehicle operates daily and 365 days a year, a
vehicle can’t operate all the days of the year .After subtracting the rest days from the days
in a year we can calculate the operation days in a year.

Taxi covers an average of 112 km per day. It covers 65 km with the passengers but 47 km
is assumed to be travelled without passengers. Similarly bus and van travels 96 km and
75 km respectively.

The average seat capacity of the taxi, bus and van are 4, 32 and 14 respectively. The seat
capacity of the van and taxi is fixed but the seat capacity of the bus varies with the size
and design of the bus.

The capacity utilization of the taxi, bus and van are 1, 0.81 and 0.93 respectively. The
vehicle operates with more than the capacity during rush hours but other than rush hours
28
the vehicle runs generally at low occupancy. The capacity utilization is calculated on the
basis of the average data.8

Fare is very high in the case of the taxi. The average fare of the taxi is Rs 415. The fare
may vary from one taxi to other and one passenger to other. The average fare of bus and
van are respectively Rs 32 and Rs 30.The fare of van is lower than bus because it travels
less distance than bus and it targets the profitable route whereas bus travels throughout
the valley. In some route there is no breakpoint level also in the case of bus.

The average number of trips travelled by the taxi, bus and van are respectively 7, 8 and
10 respectively.

Revenue per day is calculated by multiplying number of trips, Fare per seat, utilization
capacity and number of seats. After the multiplication of the above variables the daily
revenue of the vehicle is calculated. The daily revenue of the taxi bus and van are Rs
2,905, Rs 6,635 and Rs 3,906 respectively. The revenue generated by the bus is more in
comparison to the taxi and van.

The annual revenue earned by the vehicles is calculated by multiplying daily revenue by
the number of operating days in a year. By doing so the annual revenues of a vehicle
calculated for the taxi, bus and van are Rs 10,45,800 , Rs 21,82,915 and Rs 13,31,946
respectively.

The annual revenue of the total vehicles is calculated by multiplying annual revenue of a
vehicle by the number of vehicles. So the annual revenue of the taxi industry is Rs
1,25,49,60,000. The annual revenue of the bus industry in Pokhara is Rs 71,59,96,120.
Similarly, the annual revenue of the van industry in Pokhara is found to be Rs
9,59,00,112. The total revenue generated by the public transportation system in Pokhara
is Rs 2,06,68,56,232 annually.

2.3 Major Findings and Discussion

The above study shows that the public transportation system has been properly developed
in Pokhara. There are many vehicles serving the need of the passengers daily. The road
29
transport is the public transportation system used in Pokhara. Public Transportation was
developed in 1970 AD in Pokhara. The following themes are found from the above study.
 Among the 50 respondents all were male. Female are seen backward in the
management and operation of public transportation in Pokhara.
 Out of the total 50 respondents the majority of respondents fall under the age
group of 25-35. Teenage were also in a good numbers in the public transportation
of Pokhara.
 Respondents were classified on the basis of vehicles too. Taxis are more in
numbers in Pokhara valley so were the respondents.
 20 percent of the respondents were found to be the owner as well as the staff of
the vehicle. Especially, taxi driver were found to be owner of the vehicle.
 Majority of the respondents were unsatisfied with the road infrastructure of the
Pokhara. 70 percent of the respondents view there needs to be systematic
development of infrastructures in the case of the transportation. There are no
proper bus parks, taxi stand and lack of proper road too.
 Traffic of Pokhara is not found to be much busy. 66 percent of the respondents
feel that the traffic is not busy in comparison to the other major cities. The traffic
is busy only in the major places of the city namely Mahendrapool, Prithbhichok,
Chipledhunga and other places.
 The operating time of the vehicle is from 5 am in the morning to the 8 pm in the
evening in the case of bus and van. But the taxi operates from 5 am in the
morning to 10 pm in the evening. However, taxi operates other hours also in the
bus parks, hospital and tourist places.
 Public transportation in Pokhara operates 365 days a year. The average days taxi
operates in a year is 360 whereas bus and van operates 329 and 341 days
respectively.
 40 percent passengers taking discount in the case of bus. Similarly the passengers
taking discount in the can are 20 percent. Discount taking Passengers travelling in

30
 van are less in comparison to the bus as they don’t operate in the routes of the
college and schools. Taxi don’t provide discount to the passengers.
 There are 1600 vehicles in Pokhara. Taxis are 1200 in numbers, buses are 328 in
numbers and vans are 72 in numbers.
 The average fare of the taxi is Rs 370, for the bus is Rs 36 and for the van is Rs
30. The bus and van provide discount for the students. The discount percentage is
45 percent. The fare calculated in the table is after the adjustment of discount in
the case of van and bus.
 Taxi travels 8 km, bus travels 12 km and van travels 7.5 km per one trip. Bus and
van have standard route but taxi doesn’t have the standard route.
 The revenue is largely dependent on the route. Some route generates huge amount
of revenue whereas some generates very less sometimes even less than the
breaking point required to operate the vehicle in the case of bus.
 The number of trips for the taxi is 8, for the bus is 8 and for the van is 10 per day.
 Passengers are found using the fake identity cards of the students so they could be
provided with the discount while travelling.
 Certain amount is paid to the committee for the route per day in the case of bus. In
back they provide the insurance and other facilities to the vehicles paying the
amount daily. There is no free market competition and easy entrance in the
industry. There is the availability of so called syndicate in the public
transportation in Pokhara.
 The capacity utilization of the taxi, bus and van are 1, 0.81 and 0.93 respectively.
 Buses and vans operate in overcapacity during the rush hours whereas it operates
in under capacity during the rest of the time.
 According to the results obtained, the annual revenue of the taxi industry is Rs
1,25,49,60,000. The annual revenue of the bus industry in Pokhara is Rs
71,59,96,120. Similarly, the annual revenue of the van industry in Pokhara is
found to be Rs 9,59.00,112. The total revenue generated by the public
transportation system in Pokhara is Rs 2,06,68,56,232 annually.

31
 CHAPTER III
CONCLUSION AND ACTION IMPLICATIONS

This chapter deals with the major conclusions which are discussed in separated section of
the chapter. Likewise, recommendation regarding the study is also presented in separate
section of this chapter. Lastly, the chapter ends with the discussion of scope for the future
study in the same field.

3.1 Conclusion
Based on the findings; following conclusions have been drawn as a concluding
framework of the study on numbers of vehicles, capacity utilization and Revenue of
public transportation.

 Public transportation of Pokhara has lack of women participation. Teenage and

youths are the majority of people involved in public transportation in Pokhara.

32
 Taxis are more in numbers in Pokhara. Few of the staffs are the owner of the
vehicles.
 Public transportation in Pokhara operates 365 days of the year. Public
transportation in Pokhara starts from five am in the morning to eight pm in the
evening in the case of buses and van and from five am in the morning to ten pm in
the evening in the case of taxis.
 Respondents are unsatisfied with the infrastructures of public transportation in
Pokhara. But they don’t feel that the traffic of Pokhara much busy.
 There are twenty routes in the valley in which the van and bus operates. Van
operates in few routes where there is more flow of passengers whereas buses
operate all around the valley though there may not be significant flow of the
passengers. Taxis have no routes and they travel in each and every road they wish
but they especially target one place as their stand and operate most of the time
from that same place.
 Students are provided forty five percent discounts in the buses and vans but this
discount is not given in the case of taxis.
 The average fare of the taxi is Rs four hundred and fifteen, for the bus is Rs thirty
two and the van is Rs thirty. The fare system of the bus and van is standard fare
defined by committee in the recommendation of ministry of transport. But the fare
of taxi is not based on the standards. The government has recommended for using
the meter for the calculation of amount but it has not been adopted. So the fare of
the taxi also depends on the bargaining power of the passengers.
 The capacity utilization of taxi doesn’t affect its profitability whereas the capacity
utilization of bus and van are eighty percent and ninety three percent respectively.
 There are two staffs in the bus and van whereas the driver on his own operates the
taxi alone. There are about thirty five hundred families who are directly and
indirectly benefitted by the Public transportation in Pokhara.
 Taxi, Bus and van have an average of seven, eight and ten number of trips daily
respectively. Taxi, bus and van operate average daily distance of one hundred and

33
 twelve, ninety six and seventy five km per day. Taxi is almost empty after the
service of passenger from one place to the destination .So, half the distance they
covers is without the passengers.
 Public transportation of Pokhara has high contribution in the economy of Pokhara
as well as Nepal. The annual revenue of public transportation in Pokhara is two
arabs, six crores, sixty eight lakhs, fifty six thousands, two hundreds and thirty
two.
 Public transportation in Pokhara is focused towards the conservation and
preservation of the beautiful city Pokhara.
 Public transportation in Pokhara has helped thousands of people to travel from
one place to other daily since 1970 AD.

3.2 Action implications

The Research study is totally based on the Pilots perceptions. Being based on the
response of respondents there are some recommendation for the company for the
concerned authority. Few recommendations for the public transportation which they
should improve are:

 The public transportation should emphasize to operate more than fourteen hrs per
day for serving the passengers and people of the valley.
 There should be standard fare system in the public transportation especially in the
case of the taxis. The people with good bargaining power are paying less whereas
weak and innocent people are paying more
 During rush hour the vehicle are operating in overcapacity, which may lead to the
accidents too. So, new plan should be designed to solve this problem.
 The students are denied to give discounts during the night time which should be
realized and improved by the concerned authority.
 Public transportation of Pokhara lacks the infrastructures which must be
developed with the help of the Pokhara metropolitan city.

34
 REFRENCES

Gyanwali, Milan. (1991). The Condition of Road In Pokhara. Unpublished. Master

degree. P.N. Campus. Tribhuvan University.

Egmond. Patrick, Van, Peter. Nijkamp and Gabriella. Vindigni. (2006). International
Social Science Journal. A Comparative Analysis of the Performance of Urban
Public Transport System in Europe.

Pradhan, P.N. (1997). Transport and Communication in Nepal. Unpublished. P.N.

Campus, Master degree. Tribhuvan University.

Rijal (2014) Transportation, Cost and Profit Management problem in Nepal.

Unpublished. Master degree ThesisP.N. Campus,Tribhuvan University.

35
D.C Washington. (1986) Urban Transport. The World Bank.

Dogra (2008) Problem and prospect of transport in India.

Handrick. Thomas, E. and Moore franklin, G. (1985). Production \Operations

Management. United States. Richard D Irwin, Inc.

Henson. Ralph and Essex. Stephen. (2006). ScienceInternational Social journal. The
Development, Design, and Evalution of Sustainable Local Transport Network.

Reekie, W. Duncan, Jonathan N. Crook. (1988). Managerial Economics. 3rded. New

Delhi: Heritage Publishers.

Ghimire (2018) Loksewa Aayog Nayab Subba Gyankunja, 1st ed. Kathmandu

APPENDICES

A survey in Public transportation in Pokhara

Dear Respondent,

I am a student of Bachelor of Business Administration of Janapriya Multiple

Campus. This questionnaire is aimed at gaining knowledge about the public
transportation in Pokhara. In order to come with the accurate result your precise
participation would be greatly appreciated. I promise all the information provided by you
will be confidential. I am pleased to inform you that taking part in this survey, would give
you the opportunity to be the part of my report.

There are three types of questionnaires for the three different types of vehicles. But the
few questions are mutual for every type of vehicles.

36
Tick the correct answer:

A) General Questions

1. Gender:

a. Male b. Female c. Other

2. Age Group:

a. 15-25 b. 25-35

c. 35-45 c. 45+

3. Nationality:

a. Nepali b. Other

4. How many numbers of trips per day?

a. 7 b. 8

c. 9 d.10

5. Are you the owner of the vehicles?

a. Yes b. No

6. Are you satisfied with the road infrastructure of Pokhara?

a. Yes b. No

c. Neutral

7. Do you find the traffic of Pokhara busy?

a. Yes b. No
c. neutral

8. Do you think public transportation needs improvement in Pokhara?

37
 a. Yes b. No
c. Neutral

9. What is the operating hour of the vehicle?

a. 5 am- 8 pm b. 6 am – 7 pm

c. 5 am - 10 pm d. others

B) Specific questions;

i)For bus

10. How many numbers of seats are there in a vehicle?

a. 26-30 b. 30-34

c..34-38 c. 38+

11. Does the vehicle run in over capacity or under capacity?

a. Yes, it runs in over capacity.

b. No, it runs in under capacity.

12. If yes, to Question no. 7. By how much the Vehicle runs in over capacity?

a. 0-4 passengers

b. 4-8 passengers

c. 8-12 passengers

d. 12+ passengers

13. If no, to question no. 7. By how much less does the vehicle runs in under capacity?
a. 0-6 passengers b. 6-12 passengers

c. 12-18 passengers d. 18+ passengers

38
14. What is the percentage of passengers taking discount (students)?

a. 0-25 percent b. 25-50 percent

c. 50-75 percent c. 75 percent +

ii) For van

10. Does the vehicle run in over capacity or under capacity?

a. Yes, It runs in over capacity.

b. No, It runs in under capacity.

11. If yes, to Question no. 6. By how much the Vehicle runs in over capacity?

a. 0-2 passengers

b. 2-4 passengers

c. 4+ passengers

12. If no, to question no. 6. By how much less does the vehicle runs in under capacity?
a. 0-3 passengers b. 3-6 passengers

c. 6-9 passengers d. 9+ passengers

13. What is the percentage of passengers taking discount (students)?

a. 0-25 percent b. 25-50 percent

c. 50-75 percent d. 75 percent +

iii) For Taxi

10. How much is the fare from one place to the other?

39
 THANK YOU

40
41