Making Metro Rail Work in Developing Countries: Overcoming Ridership and Financial Management Challenges

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Abstract

Against the backdrop of India’s unprecedented investments in urban and regional rail-based mass transportation systems, this case introduces Ms. Anuradha Dey, the Managing Director (MD) of a major Metro Rail Corporation, who is leading a major metro rail construction program in a medium-sized city of India. Ms. Dey is committed to the flawless execution of the project with potentially large positive social and economic impacts in the metropolitan region. She is inspired by the central government’s mission of expanding and improving India’s metro rail networks. Given the experience of comparable projects, Ms. Dey is confronted with two key challenges. How to ensure that the system will generate adequate ridership as per projections? How to ensure that the system becomes financially sustainable and is able to generate adequate non-farebox revenue streams to supplement farebox income? Ms. Dey appoints a core team to explore efficient and effective ways to make the system a success. Ms. Dey embarks on a mission to evaluate various recommendations on ridership promotion and non-farebox revenue generation and develop a feasible plan to present to the Board.

Additional Information

Product Type Case
Reference No. CTL0006
Title Making Metro Rail Work in Developing Countries: Overcoming Ridership and Financial Management Challenges
Pages 32
Published on May 19, 2025
Year of Event 2024
Authors Chakrabarti, Sandip; Verma, Muskan;
Area Centre for Transportation and Logistics (CTL)
Discipline Economics, Finance, Public Policy and Law, Strategic Management
Sector Public Sector, Transportation and Logistics
Learning Objective Management of mega public infrastructure projects; Demand assessment and management; Infrastructure development and financing; Revenue management
Keywords Decision-making; Transportation; Infrastructure; Pricing; Public Finance; Development
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