ILOILO City – With only four weeks remaining until the Dec. 31 deadline for the consolidation of public utility jeepneys (PUJs), the Land Transportation Franchising and Regulatory Board (LTFRB) is urging individual operators and drivers in Western Visayas to form a cooperative or corporation.
“They should consolidate on or before Dec. 31,” LTFRB Region 6 legal counsel and spokesperson, Atty. Salvador Altura, told Panay News on Monday, Dec. 4, emphasizing their central office’s firm decision.
Department of Transportation (DOTr) secretary Jaime Bautista also announced that the deadline is non-negotiable.
Altura clarified that consolidating involves a group of individual PUV operators or drivers creating or joining a cooperative or corporation.
The call for consolidation is particularly urgent in the provinces of Iloilo, Aklan, Capiz, Antique, Guimaras, and Negros Occidental, which lack an approved Local Public Transport Route Plan (LPTRP), said Altura.
This absence makes drivers and operators in these areas more qualified to consolidate and acquire modernized units.
In contrast, in Iloilo City and Bacolod City where LPTRPs have been approved, consolidation is challenging due to predetermined and awarded route units.
“In Iloilo City and Bacolod City, the main concern is the existing LPTRPs. It’s a gray area since the consolidation allowed under the Dec. 31 deadline applies only to areas without an approved LPTRP and where a selection process has not occurred. In these cities, all routes have already been awarded, making consolidation practically pointless. The only option left is to join a cooperative to potentially benefit from its income and dividends as a member, but individual units can no longer be consolidated,” Altura elaborated.
LTFRB-6 data indicate that 60 to 70 percent of traditional jeepneys in Region 6 have been consolidated, leaving around 30 percent unconsolidated. A significant number of these unconsolidated PUJs are in Bacolod City, where out of 2,000 traditional jeepney units, approximately 500 have been consolidated.
The LTFRB-6 attributes this to strong opposition to the public utility vehicle modernization program (PUVMP) in the city.
In Iloilo City, fewer than 500 out of 2,500 traditional jeepneys remain unconsolidated.
What Happens After Dec. 31?
Currently, the LTFRB and DOTr are focusing on the consolidation of individual jeepney operators and drivers, according to Altura.
The fate of unconsolidated, and even consolidated, traditional jeepneys in January 2024 remains uncertain, as updated guidelines from the LTFRB Central Office are still pending.
“For now, the directive is to consolidate on or before Dec. 31. What happens after that date, whether they will be allowed to operate or not, is yet to be determined,” Altura said.
He stressed that being a member of a cooperative or corporation would be advantageous, considering the many possibilities in 2024, especially with the current insufficiency of operating modernized units.
In Iloilo City, for example, 1,782 modernized jeepney units have been authorized by the LTFRB under the enhanced LPTRP, but only 486 units are currently operating on various routes.
Last week, LTFRB spokesperson Celine Pialago reminded PUJ operators to consolidate by December 31, as it will be a prerequisite for vehicle registration next year.
“Membership in a transport cooperative or applying for consolidation will be mandatory for registration with the Land Transportation Office (LTO). The LTFRB will provide confirmation, which will serve as the basis for LTO registration. Technically, unregistered vehicles will be unable to operate,” she explained.
To date, Pialago reported that approximately 129,568 public utility jeepneys (PUJs), UV Express, mini-buses, and public utility buses (PUBs) have consolidated, accounting for 65.03 percent of all authorized PUVs.
“The remaining 34.97 percent consists of 69,665 individual franchise holders,” she added.
The DOTr maintains its firm stance on the Dec. 31 deadline as part of the government’s PUV modernization program.
“The program’s goal is to modernize all consolidated units and additional units as determined by the route rationalization exercise over the next ten years,” Pialago said, noting that 120,023 PUVs nationwide are yet to be modernized.
Last week, DOTr Secretary Bautista reiterated that the consolidation of PUV operators and drivers into cooperatives or corporations is non-negotiable.
“We are prepared to address all their concerns, but industry consolidation is essential and non-negotiable, as we need the players to form a cooperative or corporation,” Bautista said.
This statement followed a three-day jeepney immobilization by the transport group Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (Piston).
Transport groups have resisted the consolidation requirement, fearing it might lead to a monopoly of public transportation. (With a report from the Philippine News Agency)/PN