Landport - Public Transportation Services Redefined PT. Landasan Utama Transportasi

The number of travels of commuters from BODETABEK (Bogor, Depok, Tangerang and Bekasi) to DKI Jakarta has increased 11 (eleven) times from the year 2002 to 2009; and as of today, it has reached 7.6 million; in which 75% of those travels are by private vehicles, instead of public transportations. This condition combined with poor conditions of existing public transportations have made a very negative impact and worsening the city’s traffic condition. One of the main reasons that drive commuters to use private vehicles rather than public transportation is the unavailability of a good quality of public transportation service itself. According to 2010’s Public Transportation User Priorities survey by Steer Davies & Gleave, the top 3 priorities for public transportation users are comfort, security and reliability (being on time), but unfortunately, none of these elements matched with current commuter’s expectations. Hence, we are seeing this problem as a good business opportunity. PT.Landasan Utama Transportasi aims to be the number 1 provider of comfortable, secure and reliable public transportation service at an appropriate price for commuters, especially for those who are still currently using private vehicles. By looking the market potential that reaches 7.6 million travels daily, we are confident that this market has a good growth potential and could give a sustainable profit for the company’s future. Our target is to sell a million tickets a year on the fifth operating year, and keeps our company’s growth at 50% to 60% each year. Landport’s services will be made as close as possible to an international airport service concept, which integrates customer transportation experience, starting from the comfortable and secure departing terminal, comfortable armada, and strategic destination spots (close to Jakarta’s business district). Asides from supporting facilities such as ATM Center, Coffee Shops and Minimarkets, human resources and information system will play a very critical role in helping the company to provide such integrated service. With this concept, we are confident that we would be able to answer commuters’ needs of public transportation. Our business model will be having a number of revenue streams, such as revenues from ticket sales, space rentals at Landport’s waiting room and revenues from advertisements (B2B) on both our infrastructures and armada. As for the business practice, we will use focus differentiation strategy with focus on the value creation from our public transportation service, which is made in accordance with customer’s expectations. The business will require IDR 108 billion for the initial investment. For that matter, the company will expect an initial capital investment from investors at IDR 60 billion, which is divided into 2 phases: IDR 24 billion at the year 2012 and IDR 36 billion at the year 2016. This business will have 8 years of payback period. We are confident that the company could achieve Internal Rate of Return (IRR) at 49.90% to shareholders. Lastly, a positive Net Present Value at IDR 252.2 billion concludes that the business is feasible and could give a good return of investment.