Bengaluru Metro considers cargo transport to boost non-fare revenue

Apart from exploring cargo transport, BMRCL is also working on other non-fare revenue models such as inviting tenders for semi-naming and co-branding rights at select metro stations, advertising rights inside stations and train-wrapping advertisements.
| Photo Credit: MURALI KUMAR K

Following a sharp hike in metro fares, which has made commuting costlier for passengers, Bengaluru Metro Rail Corporation Ltd (BMRCL) is now exploring alternative revenue streams. As part of this effort, BMRCL is considering introducing cargo transportation services during non-peak hours to generate additional income.

BMRCL plans to engage with logistics and e-commerce companies to discuss the feasibility of this initiative, taking inspiration from Delhi Metro. Recently, Delhi Metro signed a memorandum of understanding (MoU) with logistics company Blue Dart to facilitate urban freight movement through metro trains.

A senior BMRCL official confirmed the corporation’s interest in the cargo transport model, stating that it could be an effective strategy to increase non-fare revenue. “We are looking at holding discussions soon with logistics and e-commerce firms to draft a comprehensive plan, with Baiyappanahalli station serving as a key hub,” the official said.

“The initiative aims to improve supply chain efficiency while addressing urban issues such as road congestion and pollution. By integrating first-mile and last-mile connectivity with metro-based logistics solutions and Micro Parcel Hubs, the plan seeks to enhance freight movement within the city,” the official explained.

In Delhi, metro trains are already being used for cargo transport, with the last coach of select trains dedicated to carrying packages during off-peak hours while passenger services continue in the remaining compartments.

Apart from exploring cargo transport, BMRCL is also working on multiple other non-fare revenue models. The corporation has recently invited tenders for semi-naming and co-branding rights at select metro stations, along with advertising rights inside stations. Additionally, it has introduced train-wrapping advertisements as a new source of income.

Expert questions timing

Transport expert Prof. M.N. Srihari welcomed the move, stating that metro systems worldwide are increasingly using their spare capacity for additional revenue while promoting sustainable solutions. However, he criticised the timing, saying, “BMRCL should have considered such non-fare revenue models before implementing the steep fare hike. Nevertheless, it is good that they are now exploring these opportunities. With growing urbanisation and increasing reliance on e-commerce, BMRCL’s proposal could provide a much-needed alternative for freight movement while boosting its financial stability.”

He also pointed to Madrid Metro’s pilot project, where parcels are transported using metro trains in collaboration with logistics partners, reducing road congestion and emissions. “Similar models have been successfully implemented in other cities, and Bengaluru Metro should learn from these examples,” Prof. Srihari added.