KSRTC launches cargo truck service to boost non-ticket revenue

What happened

The Kerala State Road Transport Corporation (KSRTC) has officially entered the freight sector, launching a new cargo service to drive up its non-ticket revenue. The state-run transport utility began operations on Wednesday, 7 October 2026, with an inaugural shipment of one tonne of mobile phones transported from Thiruvananthapuram to Aluva.

The cargo had arrived at the Thiruvananthapuram International Airport on an Air India flight from Delhi, before being loaded onto a truck hired by KSRTC for the final road journey. Kerala Transport Minister C.P. John flagged off the service at a ceremony held at the airport’s domestic cargo terminal.

Who is involved and how it works

The launch is a key part of the state government’s 100-day action plan, marking a significant strategic shift for the public transport operator. KSRTC is starting the venture on a modest scale, deploying five wet-leased trucks for the initial phase of the rollout.

To get the service off the ground, KSRTC has partnered with private logistics firms Scorpion Cart Logistics and Cargo Cart Logistics, which are providing operational support. For now, the five trucks in service are being run under a wet-lease agreement. This arrangement, where the vehicles are rented along with drivers and maintenance support, allows the corporation to run the logistics network without the heavy upfront cost of buying a new fleet of trucks.

What happens next

The long-term ambitions for the service are much larger. Speaking at the launch, the minister said the corporation plans to steadily scale up the service, with the goal of eventually operating a fleet of more than 100 cargo trucks.

By entering the competitive logistics market, KSRTC is looking to build a reliable stream of non-ticket revenue to help stabilise its finances. The corporation decided to make the move after studying successful cargo models run by other state road transport undertakings across India, many of which have managed to offset losses in passenger operations through freight transport.

Officials have indicated that the income generated from this new initiative will be reinvested directly into services that benefit KSRTC’s passenger base. If the model proves successful, it could provide a vital financial cushion for the public transporter, which has historically struggled with high operational costs and heavy reliance on passenger fares.