Progress delayed is progress denied

On the back of the nationwide strike planned by transport groups, the Land Transportation and Franchising Regulatory Board (LTFRB) announced that it would extend, yet again, the deadline for PUV operators to comply with the first phase of the PUV modernization program. The extension takes effect from June 30 and expires on Dec. 31, 2023.

It will be recalled that the PUV modernization program was championed by former DOTr secretary Art Tugade. Ratified in 2017, jeepney and bus operators were given three years, or until 2020, to comply with the first phase of the program. This first phase requires PUV operators to consolidate into cooperatives or corporations to achieve economies of scale – doing so will enable them to professionalize their operations.

The year 2020 came and went and the greater majority of jeepney and bus operators failed to comply. Transport groups asked for an extension and threatened to mount a nationwide strike if they did not get their way. The LTFRB relented and granted an extension until June 20, 2023, or another three years.

As the new deadline approaches, many jeepney and bus operators are caught flatfooted again, not having consolidated. With their franchises in threat of non-renewal, another transport strike was organized to pressure the LTFRB. It is the proverbial gun that they put to the public’s head. Again, LTFRB relented and extended the deadline to Dec. 31, 2023.

The LTFRB should show some backbone. If they cave every time transport groups threaten a strike, this PUV modernization program will never come to fruition.

The PUV modernization program will make the country’s public transport system more efficient and environmentally friendly. The program calls for the phase-out of jeepneys, buses and other public utility vehicles that are 15 years old or older. These will be replaced by safer, more comfortable and environmentally-friendly alternatives over the next three years. Currently, there are 220,000 jeepney units operating throughout the country.

The replacement vehicles are required to utilize Euro-4 compliant or electric engines to comply with the Clean Air Act. PUVs must also be rigged with CCTV cameras, an automated fare collection system, speed limiters and a GPS system. The DOTr specifies no preference as far as manufacturers of new generation PUVs are concerned. For as long as they pass the Philippine National Standards and are aligned with the Omnibus Franchising Guidelines of the LTFRB, operators will have no problem renewing their franchises.

Government has made it easy for PUV operators to replace their decrepit vehicles. A subsidy of P160,000 has been granted to cover the down-payment, chattel mortgage and insurance of a brand new vehicle. A concessionary interest rate of six percent will be applied over an amortization term of seven years. This allows the PUV operators to obtain a brand new PUV with practically zero cash outlay whilst paying affordable monthly installments. The cost of a new vehicle can range from P900,000 to P2.5 million, depending on its load capacity and engine.

Some PUV drivers and/or operators may find it difficult to understand how the financial model works. For guidance, they can refer to the LTFRB or enroll in the Driver Scholar Program of TESDA.

Adjunct with the modernization of buses and jeepneys will be the rationalization of routes. New routes will be created while appropriate number of PUVs will be deployed per route.

The benefits of the program are numerous. For the riding public, they will enjoy more efficient and connected routes, shorter waiting times, a safer and more comfortable journey, predictable travel times, more disciplined drivers (due to the elimination of the boundary system) and reduced traffic. For the drivers, they will benefit by way of fixed base salaries plus benefits (which they are presently deprived of), higher incomes by virtue of vehicles with higher passenger capacities, faster turn around times due to rationalized routes, less working hours, less traffic, less work stress and less franchise costs. It is a win-win situation for all.

There are other reasons why the PUV modernization program needs to be implemented with no more delay. According to the DENR, 80 percent of the pollution in Metro Manila and key cities is attributed to motor vehicle pollution, particularly from old diesel-run PUVs. In terms of motorists’ safety, some 40,133 accidents were recorded involving PUVs between 2016-2019. The extraordinarily high accident rate of PUVs is due to the lack of maintenance of vehicles and failure to replace tires, break pads, headlights and tail lights. The sad reality is that independent PUV operators function from hand to mouth. They simply do not have the financial elbow room to invest in maintenance. Hence, the need to organize into cooperatives or corporations.

And then there is the outdated boundary system – an arrangement that brings out the worst in PUV drivers. The need to earn the boundary compels drivers to race like mad men to secure as many passengers as possible, even if it means breaking traffic rules. Drivers have no choice but to work 12 to 14 hours per day just to earn a decent take-home pay, after boundary. Many have resorted to taking illegal drugs to meet the physical demands of the job.

The PUV modernization program will eliminate the boundary system in exchange for fixed salaries plus SSS, PhilHealth and Pag-Ibig benefits for the driver. Working hours will be rationalized and safer driving conditions secured. Drivers will now be accorded the dignity they deserve.

The PUV modernization program is long overdue. Citizens, commuters and drivers have waited six long years for this badly needed program to be implemented. We must not let those who resist change and those who failed to prepare get in the way of progress. Let this be the last time the LTFRB gives in to pressure. At the end of the day, progress delayed is progress denied.

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Email: [email protected]. Follow him on Twitter @aj_masigan