Kerala State Road Transport Corporation’s courier and logistics service suspended
The Kerala State Road Transport Corporation has suspended its courier and logistics service following widespread complaints regarding poor service quality. The corporation terminated its contract with the private operator and plans to invite new tenders to resume operations.
Why it matters
The failure of this public-private partnership highlights the challenges of outsourcing essential public services to private firms without adequate oversight.
The courier and logistics service launched by the Kerala State Road Transport Corporation (KSRTC), which, according to the corporation, delivered consignments anywhere in Kerala and to select cities outside the State within 16 hours, has been suspended following complaints of poor service. The corporation has issued a notice to Andhra Pradesh-based Singu Solutions, which operated the service, directing it to discontinue operations.
The service, which initially generated crores of rupees in non-ticket revenue for the corporation, was handed over to a private firm on a five-year contract as part of efforts to bring professionalism to its operations. However, the corporation received widespread complaints about poor service, following which the KSRTC directed the private firm to discontinue the operations. Courier bookings have now been completely suspended.
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