Case Study – Kavim

 

KAVIM Public Transportation: Two Consecutive Tender Wins Lead to a 150% expansion

 

Challenges
“Using Optibus’ services we were able to quickly create and test different optimized schedule alternatives, evaluate their actual cost, and prepare a winning applicable plan. This helped us to significantly reduce our operational costs”
Zion Pat (CEO, Kavim)

Initial Status
Founded in 2000, the Kavim bus company operated mainly in central Israel with a fleet of around 400 buses. With the objective of growing their business, Kavim participated in two public tenders in 2012, one assigning Modiin-Ramla bus lines and the other the coastal area lines between Tel Aviv, Netanya and Hadera, including intercity and urban transportation.

The Tenders
Requiring a fleet of 400 buses, the Modiin-Ramla tender was the largest ever issued by the Israeli Ministry of Transportation (MOT). The operation of the Hadera-Netanya-Tel Aviv lines called for around 250 buses. Prior to these tenders Kavim had no operations in these areas.

The Solution
For both tenders, Kavim used the Optibus solution to optimize the schedules. This solution presents numerous scheduling alternatives as the result of an interactive process with the scheduler. The system analyzes parameters, such as location of depots and parking lots, and assignment of different vehicle types. It then presents their impact on schedule efficiency and operating costs. For each schedule option, Optibus’ algorithms quickly calculate trip times and overall cost while alerting of potential bottlenecks. This interactive process enabled Kavim to submit the most efficient schedules for the tenders.
A study led by researchers from the Technion – Israel Institute of Technology compared the schedules calculated by the Optibus solution to those produced by conventional scheduling software. The following table relates to a contract comprising of 975,713 yearly service trips associated with an accumulated travel distance of almost 20 million kilometers. It shows that using the Optibus solution reduced idle costs by 17%-22%.

Subsequent to the tenders
Winning the two MOT contracts in 2012, Kavim significantly expanded its operations. Now, with a fleet of over 1000 buses, Kavim has become the largest privately owned Israeli public transportation company. Today, Kavim uses Optibus on an ongoing basis for schedule creation.

Donload the full Kavim Case Study