Transforming sikkim national transport into a profitable venture: A swot analysis

Road transport is the only means of communication in the Himalayan state of Sikkim. In 1944 a truck department was established in Sikkim which in 1955 was renamed as Sikkim Nationalised Transport (SNT). The SNT is directly managed and taken cared by State Government unlike other states were nationalized public transport is looked after by State Corporation. The SNT has successfully been able add and build new infrastructures, new fleet of buses, trucks and tankers and increase in human resources in the last three decades. SNT has the largest fleet of buses and trucks/tankers which operates throughout the state on major routes. Presently only a small market share remains with SNT which caters mainly to the demands of the army, GREF and other Government departments apart from providing school buses for children. Other than from the commission on private buses, trucks and tankers and supervision charges the cost recovery from its core business i.e. commercial operation of its Bus, Trucks and Tankers is mere 22%. The SNT needs to create a Strategic Plan for substantially increasing its traffic within the framework of its social, cultural and national responsibilities. At the same time the importance of the role of the SNT in providing passenger and freight services as a social obligation cannot be overlooked. A SWOT analysis along with situation analysis has been carried out in respect of various operations and commercial aspects of the SNT business.