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Business

PUV modernization gets boost

Richmond Mercurio - The Philippine Star

MANILA, Philippines — The Department of Transportation (DOTr) said its public utility vehicle modernization program is on the right track as more drivers and operators are getting accredited leading to the June 2020 deadline for the program’s full implementation

The Office of Transportation Cooperatives (OTC), an attached agency of the DOTr, said a total of 1,131 transport cooperatives with 110,909 drivers and operators have been accredited for the PUV modernization program (PUVMP) to date.

The OTC said the number of transport cooperatives has almost tripled from only 429 groups prior to the PUVMP launch in 2017. 

“We are urging all transport groups to follow these cooperatives who are ready to adhere to the requirements of modernizing their franchise. The number of transport cooperatives is increasing which shows that many drivers and operators support government’s call for a safer and better transportation system for our commuters,” Transportation assistant secretary for road transport and infrastructure Steve Pastor said.

According to Pastor, consolidation of cooperatives strengthens financial capability in funding new PUV units. 

Instead of drivers and operators purchasing the new units themselves, cooperatives may take out loans from banks that offer financial assistance to comply with the PUVMP, he said.

“Drivers will benefit from putting up cooperatives as they will now become operators as well. Apart from monthly salaries and benefits such as SSS and PhilHealth, they will also earn from the profit of the cooperative. We strongly urge our drivers and operators to register now as a cooperative,” Pastor said. 

Pastor, however, said that while the June deadline for the PUVMP is set, DOTr has given consideration to individual PUV drivers and transport groups that will not be able to fully modernized come June 2020 .

He said those who would not be able to comply with the PUVMP by June would still be granted probationary authority to operate for one year, but on two conditions. 

“First, they must submit a certification from Land Transportation Office that their vehicles are roadworthy. Second, their transport groups must file for consolidation of franchise,” he said.

Transportation Secretary Arthur Tugade said earlier that unlike previous administrations, the current government is bent on modernizing the country’s public transport.

Under the government’s PUV modernization program launched in 2017, old jeepney units are required to be replaced with modern PUVs that are powered by either brand-new Euro 4 compliant diesel engines or electric motors

The program is part of efforts to provide a safer transport system for commuters, while mitigating the effects of climate change.

“DOTr prioritizes the safety of our commuters. It is the right of every commuter to be provided legal, safe, and efficient modes of transportation,” Pastor said.

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