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Bus transportation holds the primary position of public transportation in Indian cities after introducing Jawaharlal Nehru National Urban and Rural Mission scheme. The significant rise in passenger demand over recent decades has increased the need for improved vehicular and passenger facilities at bus stations. This study analysed the factors affecting the performance of Arapalayam Bus Station in Madurai, which serves both intercity and local bus services. The field investigations revealed that current service intensity is insufficient to accommodate the bus arrival rate, leading to queuing outside the station premises. This results in traffic congestion on city roads, develop conflicts between vehicles-pedestrians and increased delay in bus services. To evaluate the impact of each factor, a questionnaire survey was conducted and responses were ranked using a statistical method known as principal component analysis. The results indicated that absence of bay optimisation, separate bay facilities, streamlined passenger movement and bus queuing significantly affects station operations. In addition, absence of dedicated feeder service leads to passenger pick-up and drop-off near the adjacent carriageways, further contributing to blockages and congestion. The study designed an integrated bus terminal layout with improved feeder facilities to achieve multi-modal traffic operations in practice.

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