<![CDATA[This study examines the effect of digital literacy on digital readiness among employees of Tirtonadi Terminal, Surakarta, and tests digital competence as a mediating mechanism. A quantitative explanatory design was used with 120 employees selected from a population of 172 through simple random sampling. Data were collected using a five-point Likert questionnaire covering digital literacy, digital competence, and digital readiness, and were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The measurement model met convergent validity, discriminant validity, and reliability criteria. Digital literacy significantly increased digital competence (β = 0.711; t = 12.302; p < 0.001) and digital readiness (β = 0.740; t = 14.262; p < 0.001), while digital competence significantly improved digital readiness (β = 0.485; t = 6.070; p < 0.001). The indirect effect was also significant (β = 0.345; t = 4.931; p < 0.001), indicating partial mediation. The findings show that literacy provides the cognitive and technical foundation for digital adaptation, while competence converts that foundation into work-related capability. Public transport organizations should therefore combine digital-literacy development with practical competence training to strengthen employee readiness for continuing digital transformation]]>
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